Taco Bell, world's largest Mexican-themed fast food chain has its headquarters in Irvine, the United States of America, opens a new restaurant in Lujiazui, Shanghai's financial hub, on Jan 9. [Photo provided to chinadaily.com.cn]

Taco Bell, the world's largest Mexican-themed fast food chain, opened a new restaurant in Lujiazui, Shanghai's financial hub, on Jan 9.

The move comes as part of the California-based company's attempt to successfully reenter the Chinese market following its first ill-fated attempt in the early 2000s.

The two billion dollar franchise has strategically altered its menu to better suit local tastes with an increased number of hot dishes, melted cheese, and a variety of sauces among the changes made.

"China has the world's most complicated and diverse flavors, in America you just put ketchup on everything,” said Micky Pant chief executive officer of Yum China Holdings who is hopeful the company can rise to the challenge.

The restaurant has also ensured its prices are competitive, for example a two-taco combo, which includes two tacos, one side dish and one soft drink, is priced at 48 yuan ($6.90).

Taco Bell has chosen the Lujiazui location on account of its excellent transportation and large number of visitors and workers that pass through the area daily. The restaurant has also paid close attention to its interior decoration with urban graffiti, images of the California surfing life, and other design features evoking Americanness.