The plan come as competitors like Nando's and Australian burger chain Grill'd continue to capitalise on the wave of licensed "fast casual restaurants" showing up in Australia.
Images of the proposed "KFC Fresh" have been circulating online, as well as a photograph of the application for a liquor license.
KFC also sells liquor in some Canadian stores.
The move comes a few weeks after McDonald's began testing a new menu and image in the Sydney suburb of Camperdown.