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A NEW $2.6 million KFC has opened in North Rockhampton.

The fast food restaurant is on the Musgrave Road side of the Stockland Shopping Centre and is employing 25 people.

It's part of an overall Queensland expansion and upgrade program which includes three new KFC stores, two store relocations and six store upgrades.

The program is a $6.7 million investment and will take the chain to 125 stores in Queensland by the end of the 2012-13 financial year.

The new store replaces the KFC store on the corner of Brown Street and Queen Elizabeth Drive to better service customers in the central hub of Rockhampton North.

Collins Food Managing Director and CEO, Mr Kevin Perkins says the store includes a range of new initiatives being invested in by Collins Foods.

"Our new store openings and upgrades are part of our commitment to meet the changing demographics of Queensland and provide customers with a pleasant and efficient store experience," Mr Perkins says.

Included in the new store is a tandem drive thru which allows orders to be taken from two customers at the same time.