Why Fast Food Restaurants Have To Choose Between Coke Or Pepsi Products

The common phrase, "Is Pepsi okay?" might disappoint some and excite others, depending on where you fall on the Team Coke versus Team Pepsi dispute. The rivalry between soft drink companies Coca-Cola and Pepsi has raged on for over a century. The soda makers have such a long-standing beef that it is highly unlikely to find a Pepsi product next to Diet Coke at a soda fountain.

You might think that this competitive beverage race forces restaurants to pick a side when deciding which brand to offer in drink dispensers. While many do opt for either one brand or the other, it isn't necessarily a requirement to do so. Very technically, restaurants are allowed to offer both Coke and Pepsi products, but it doesn't make a whole lot of sense to do so from a logistics point of view. Both Coca-Cola and Pepsi offer an exclusivity contract to restaurant chains in exchange for a discount on fountain beverage products. This incentive causes many restaurants to take advantage of this deal, resulting in fast food beverage fountains that are full of either Coke or Pepsi products, but rarely both.

There are, however, certain soda brands that fall outside the umbrella of both Coke and Pepsi products that use this company rivalry to its advantage. Dr. Pepper and its mysterious 23 flavors, for example, is neither a Pepsi nor a Coke product, strategically making deals with both brands in order to be offered in restaurants regardless of which exclusivity contract is signed by restaurants.

For fast food brands, the type of soda offered at the beverage dispenser is typically based on what makes the most sense financially. However, for many consumers, the brand of soft drink you choose to partake in is a much more personal matter.

Coca-Cola has maintained its ranking as the number one soft beverage both nationwide and worldwide and is exclusively offered at fast food chain giants like McDonalds, Burger King, Wendy's, Domino's, and Chick-fil-A. Pepsi offers products like Diet Pepsi, Crush, and Starry — once known as Sierra Mist. These products can be found at fast food joints like Taco Bell, KFC, Pizza Hut, and, as of January 2025, Subway. The sandwich chain announced this new partnership with Pepsi after a long-standing alliance with Coke products.

If your favorite restaurant is currently offering Coke products when you are a die-hard Pepsi lover, all hope is not lost. Because the exclusivity agreements that restaurants typically sign are based on which brand can offer the best deal, there are many times when a chain will opt for a contract with a different soda brand after its current contract expires. For example, Costco food courts confirmed a soda fountain switch from Pepsi to Coca-Cola products, which is set to happen sometime in 2025.