Fried-chicken restaurant chain KFC will create 1,600 jobs this year by opening more than 40 restaurants across the UK and Ireland.

The US-owned firm plans to spend £40m on the expansion drive. It will also spend a further £40m on a makeover of 160 existing eateries to "create a more modern, welcoming environment for customers". The expansion drive will be co-funded by franchisees.

This year's openings will boost its total number of UK and Ireland restaurants to nearly 900. The group says it could eventually have a total of 1,200 in the two countries.

KFC, which employs about 24,000 people, has been adding at least 30 new restaurants in the UK a year and says it has seen seven years of same-store sales growth in a row.

Low-cost fast food restaurants have been prospering, despite the economic slowdown. McDonalds has reported improving sales in the UK and Domino's pizza delivery service recently reported a 10% improvement in annual profits despite sales growth slowing due to January store closures caused by bad weather.

KFC UK, which is a subsidiary of Pizza Hut parent company Yum! Brands, came to Britain in 1965. The first store opened in Preston, Lancashire.

The brand was founded in the US by Colonel Harland Sanders in the 1950s.