Fast-food giant KFC is planning to serve beer and cider alongside its chicken and chips at one of its new Sydney stores.

KFC has applied for a liquor licence for its new Parramatta store in a bid to keep up with the growing popularity of "fast casual restaurants", which are increasingly offering alcohol on their menus. B

Chicken and beer: KFC's plan to sell liquor. Credit:Wayne Taylor

A KFC spokeswoman confirmed the "concept" store on Church Street would sell beer and cider, but refused to give further details.

It is an apparent attempt by the company to diversify into the fast-growing middle market for fast food dominated by chains such as Mad Mex, Nando's, Guzman y Gomez and Grill'd.