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US fast food giant Kentucky Fried Chicken (KFC) plans to lower the threshold for its franchise in China and maintain the current development pace, according to KFC owner Yum Brands Inc.

 

Sam Su, president of Yum Brands Inc. China, said the threshold for joining KFC would possibly drop from eight million yuan (US$1 million) to two million yuan, The Beijing News reported on Wednesday.

 

"We'll continue opening our door, and more partners will enter," Su was quoted as saying.

 

The competition in big cities like Beijing and Shanghai has intensified between KFC and its rival McDonalds.

 

The two US fast food chains have begun to eye medium and small-sized cities in China.

 

KFC has opened more than 40 outlets in China this year, bringing its total to more than 1,700.

 

Vice president of Yum Brands Inc. China Wang Qun said KFC planned to open around 400 outlets in China annually.

 

KFC also planned to initiate an outlet in Tibet in far southwest China.

 

(Xinhua News Agency November 16, 2006)