YUM! Brands Inc, the owner of KFC and Pizza Hut, will team up with Sinopec to open more restaurants in the refiner's network of gas stations across China.

Zhu Zongyi, president of Yum! Brands China Division, said yesterday that the Sinopec gas stations would help his firm expand business into counties and well-off townships. Sinopec has around 30,000 petrol stations in the country.

The two companies yesterday signed a framework cooperation agreement under which Yum! Brands expects to set up about 50 restaurants of KFC, Pizza Hut and Chinese-style fast food chain East Dawning in selected Sinopec gas stations within five years. It has already opened seven restaurants within the Sinopec network in Shanghai and Guangdong.

Analysts said the cooperation will allow KFC to maintain its rapid expansion amid tougher market competition which has made it more difficult to find ideal locations in first-tier cities .

Louisville, Kentucky-based Yum! has nearly 3,500 KFC franchises, 560 Pizza Hut restaurants and about 20 East Dawning stores in China. It earlier said it plans to open 500 new stores annually over the next three years. Last year, Yum! Brands' China division reported a revenue of 33.6 billion yuan (US$5.28 billion), according to Xinhua news agency.

Chai Zhiming, deputy general manager of Sinopec Sales Co, said teaming up with Yum! Brands will help the oil giant upgrade the infrastructure and service levels in its gas stations and highway service areas nationwide.