(Yicai Global) Sep. 23 -- Yum China Holdings, the operator of the Kentucky Fried Chicken, Pizza Hut and Taco Bell chains in China, and Italian coffee maker Luigi Lavazza plan to open 1,000 outlets in the country by 2025.

The expansion will cost around USD200 million, will focus on major cities and will offer a wide range of store formats, Shanghai-based Yum China said today. The pair already run 22 cafés in cities such as Beijing, Shanghai, Guangzhou and Hangzhou.

The two companies set up a joint venture last year that is 65 percent owned by Yum China and the rest by Turin-based Lavazza. The JV will also be exclusive distributor of Lavazza’s products, such as coffee beans, ground coffee and coffee capsules, on the mainland.

Founded in 1895, Lavazza employs about 4,200 people and had a turnover of EUR2.1 billion (USD2.5 billion) last year. Yum China is a branch of US fastfood giant Yum! Brands and operates over 11,000 restaurants in 1,500 cities in the country.

Editor: Kim Taylor