Safer, healthier

"I would like to have a try of (KFC's) shaobing," said Vivian Chen, a corporate accountant. "I have long missed shaobing stalls along the streets."

"But the food offered by food chains is much safer and healthier than those sold by street vendors. I often buy youtiao at KFC on my way to work," she said.

Many Chinese rue the loss of vendors who used to ply the streets of Shanghai with these popular snacks. But hygiene regulations and the city's desire to maintain a certain image have driven them off.

KFC has combined both Chinese and Western touches, offering shaobing in two flavors, stuffed with smoked chicken or bacon and fried eggs.

"There is a bright future for Western food chains that put Chinese-style cuisine on their menus," said Kuang.

"A combination of Western processing techniques and Chinese food and flavors could be a hit," he added.

Apart from expanding their food portfolios, global food chain retailers are also trying to ingratiate themselves by adopting Chinese-inspired store design and decor.

Starbucks incorporated Chinese elements in several of its outlets across the nation to harmonize with surrounding buildings.

A Starbucks coffee house built in an old house in Chengdu uses tables and chairs made from bamboo. Even the floor is made of bamboo. The coffee house didn't want to change the appearance of the old house and maintains harmony with the local environment.

The Starbucks in the famed Yu Gardens in Shanghai has also kept a nostalgic touch.

"Starbucks tried to incorporate many Chinese elements in both food and store design to make the shops more amiable and home-like," said Caren Li, public relations manager for Starbucks (China). "It is our hope to win the hearts of more Chinese consumers with these creative foods and stores."

Overseas restaurant chains haven't stopped there in their ambition to expand in China.

Yum! Brands Inc, the world's largest restaurant company and the parent of KFC, Pizza Hut and Taco Bell, established Chinese quick-service restaurants known as East Dawning in China in 2004.