SHENZHEN, China, Sept 6 Reuters Fast food giant Pizza Hut is adapting to China39;s sluggish economy by opening stores that offer smaller, cheaper versions of its favourites to attract costconscious diners, a strategy its parent Yum China is also using for other brands.

In the busy Bao An District of Shenzhen, a small lunchtime queue stood outside the recently opened Pizza Hut Wow store, which sells smaller pepperoni pizza servings for 29 yuan 4, pastas for around 15 yuan, and a steak for 35 yuan, all priced significantly less than at traditional Pizza Hut restaurants.

Chinas catering industry is very competitive right now, but were trying to be innovative, a Pizza Hut Wow spokesperson said. This kind of store is more for individuals, like a small plate of tapas. In the past, Pizza Hut has been set up for families sharing.

The first Pizza Hut Wow store opened in Guangzhou in May and there are now more than 100 around the country, with a target of 200 by the end of the year, Yum China said.

The company, which operates 10,931 KFC stores and 3,504 Pizza Hut stores, has also been experimenting with smaller store formats for KFC and rolling out more KCOFFEE kiosks to capitalise on a growing demand for cutprice coffee in China.

During a recent postearnings call with analysts, Joey Wat, Yum China39;s CEO, said Pizza Hut Wow and KCOFFEE showed great future potential.

According to independent food and beverage analyst Zhu Danpeng, large chains like Yum Chinaoperated KFC and…