The popular fast food outlet on High Street seemed to be undergoing a refit earlier this week but it turned out it was shutting.
A KFC spokesman said: “Sadly our High Street restaurant in Banbury closed last Sunday.
“But fear not, as we’ve just opened a brand-new KFC in Lockheed Close where our fans can still get their chicken fix!”
The drive-thru KFC on Banbury Cross Retail Park opened last year in the former Burger King building.
The closure of the High Street branch is the latest fast food outlet to leave Banbury town centre, after McDonald’s vacated its Bridge Street restaurant in 2017.