Seiyo Food Systems Inc. said Wednesday it has agreed with the Nestle Japan Group to jointly set up and operate a new chain of Italian restaurants.

Pasta Bar Buitoni will offer pasta dishes priced at around 500 yen, with takeout sections to be set up in outlets in the future, the major restaurant operator said.

The first eatery is scheduled to open in downtown Tokyo, with some 100 restaurants to be launched by 2005 in the Tokyo metropolitan area, it said. It added that annual sales of more than 70 million yen are targeted for each outlet.

Seiyo Food Systems said it will combine its knowhow in chain store management with Nestle Japan's impressive track-record in marketing and developing new products.