Yum! Restaurants India, a subsidiary of American franchise giant Yum! Brands, has outlaid an aggressive expansion plan to increase its domestic retail network by two-fold to 1,000 by 2015.

The restaurant operator is seeking penetration of its brands – KFC, Pizza Hut and Taco Bell – into smaller towns across the country.

The chain has recently opened its 500th store under the brand Taco Bell in Bangalore, where it plans to further explore growth opportunities in 2014.

Yum! Restaurants India president Niren Chaudhary told PTI that the company is delighted with the strong performance in smaller towns alongside bigger cities and metros.

"There, the consumers are aware of the brand because they have seen it on TV or travel to big cities. When we go there, they receive our brand very warmly," added Chaudhary.

The planned 500 stores will be equally opened in big cities, tier 2 and tier 3 towns.

Once the company reaches the target of 1,000 outlets, 500 will be KFC restaurants and the remaining 500 will be under Pizza Hut and Taco Bell banners.

"In KFC, when we are going to particular smaller towns, we are seeing a disproportionate success in these tier 2-3 towns, where the sales very often are higher than the sales in the larger cities… rentals are much lower in smaller town. Therefore, the model works very well," Chaudhary concluded.