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M A R C H / A P R I L 2 0 1 5 • R E S T A U R A N T D E V E L O P M E N T + D E S I G N • 4 5 W hen competition stiffens or the economy weakens, restaurant chains face the challenge of fnding new, creative ways to pursue expansion. These days, compe- tition is ferce, and the economy, while on the road to recovery, has dealt foodservice a heavy blow. Creating new formats that can take chains into nontraditional locations represents a growing strategy employed by more and more concepts. Generally smaller in size than traditional concepts, these new platforms enable operators to travel in new directions with site selec- tion and realize savings on real estate and build-out costs. The new formats also come with smaller operational requirements and a lower franchisee investment. And they can be extremely effective for reaching new consumer markets. But they do come with some big challenges, especially how to develop these new platforms without breaking the restaurant chain's original brand promise. Doing so takes a lot of strategic, creative work and a big tolerance for risk. Here's a look at three chains that have taken the leap and grown as a result. Philly Pretzel Factory Takes New Platform Twists For 14 years, Philly Pretzel Factory stores were true to the original concept: 1,200 to 1,500 square feet, with big rotating ovens, big mixers and other equipment, including a proprietary pretzel stringer, needed to make fresh pretzels all day. Patrons could watch staff mix the dough and feed it into the hopper, before forming it and baking it into Philadelphia-style pretzels. The stores acted as retail and wholesale operations, also selling in bulk to schools and other organizations. The system worked well, and the stores produced thousands of pretzels every day. The company grew with stand-alone and shopping mall units up and down the Eastern Seaboard. In 2012, however, the leadership team began to consider creating addition- al, smaller platforms that could take the brand into nontraditional markets. "The economy had something to do with it," says Marty Ferrill, president. "When the economy tightened up, it made it harder for franchisees to get access to capital." The company looked at the idea of smaller formats to lessen the invest- ment required but grappled with how to replicate, in smaller footprints, the pretzel-making process that had been so fnely tuned in the larger stores. Ferrill says they went to their manufacturer to reengineer all of the equipment, making it small enough to ft in a 250- to 300-square-foot space and still produce the quintessential pretzel. "You get used to doing things one way, and you don't think you can do it," Fer- rill says. "But with a little hard work and engineering, we made it happen." The company's frst foray into nontraditional territory was to locate inside discount retail giant Walmart. This strategy has proven to be extremely savvy: The traffc is great, Ferrill says, and the pretzels are a snack opportunity or a reward for the kids. Other nontraditional sites continue to be successful for Philly Pretzel Factory too. These include train stations, the Phil- adelphia Zoo and the Philadelphia airport. At the zoo, the chain's 425-square-foot