Yum! Brands, operator of fast-food chains KFC, Pizza Hut and Taco Bell, is to open 150 outlets inside Suning Appliance stores over the next five years.

The two companies have inked a deal that enables Yum! Brands to operate KFC, Pizza Hut, Little Sheep and East Dawning restaurants inside the Chinese stores run by Suning Appliance. Trial Pizza Hut and KFC outlets have been set up in Suning stores in 17 cities including Shanghai, Beijing, Shenyang, Nanjing and Dalian.

“The two parties share the same growth strategy and closely supplement each other, and this forms the bedrock of the alliance,” Zhu Zongyi, Yum! Brands CEO said. “The partnership will attract more customers than if each operates separately.”

Yum! Brands now has more than 5000 outlets in China and plans to add around 600 more in coming years. It acquired hotpot chain Little Sheep last year and Chinese fast food restaurant brand Dong Fang Ji Bai (Chinese name for East Dawning) in 2005.

Yum! Brands will also add 50 outlets at Sinopec gas stations over the next five years. The fast-food chain operator also plans a tie up with retailers Tesco, Carrefour and Sun Art Retail Group.

Kentucky-based Yum! Brands has more than 37,000 restaurants worldwide, while Nanjing-based Suning has more than 1700 stores in China and overseas.

GB