Wolves legend Steve Bull, Pat McFadden MP and Councillor Greg Brackenridge, the mayor of Wolverhampton, all helped celebrate the reopening of the fast food outlet in Penn Road on Friday.
The new design has created a larger drive-through area and the chicken shop's 68 staff are now back at work after six-and-a-half weeks off.
Khalid Mahmood, general manager, said: "The refurbishment has created a further 14 jobs and by the end of the year we expect to take on a further 20 people.
"We are welcoming applications from those keen to join our team.
"The building was old-fashioned before the refurbishment and the new design enables us to fit in more customers and increase the drive-through area.
"We can now cater for more visitors by car each hour.
"This is one of the best in the whole company and a lot of people have been visiting us from neighbouring outlets to see how it looks and how we are dealing with customers."
Harinder Dhillon, for the Splendid Hospitality Group, the franchise group of KFC responsible for 42 stores in the Midlands and North East, said: "We have the highest sales and welcome around 5,000 customers each week.
"The site has been redesigned and reconfigured to provide an increased delivery and drive-through area.
"It is great to be reopening the doors of our Wolverhampton site.
"We love being part of the community and are committed to growing and benefiting the local area.
"We are thrilled to be bringing new jobs to the area and offering people a place to enjoy some delicious fried chicken."