Sonic 2003 Annual Report Download - page 16

million. And we’ll devote an increasing proportion to network cable advertising, which
has proven to be particularly effective in increasing advertising awareness and driving
sales in developing markets.
Our development program also boosts franchise income. As our franchised drive-in
restaurant base grows, we benefit from franchise fees on new locations. With increasing
average unit volumes, our royalty income also grows because of our unique system for
ascending royalty payments. Additionally, company-owned drive-in development provides
cohesion for the growth of our brand over the long-term, while complementing our
revenue growth and enhancing
the balance of our operations.
The implementation of new
day-part initiatives represents
another important strategy to
boost average unit volume. While
we have been successful in
building sales across the day,
clearly the most ambitious of
these deal with the morning day
part and the three-year roll out
of our breakfast menu. Our
diversification into the morning
day part is one more way we are
working to keep the Sonic
concept relevant to our
customers, today and tomorrow,
and we’re pleased that breakfast
already exceeds 10% of our total
sales. Still, we view
this as a long-term venture,
which in combination with
other new product news and
day-part initiatives, should
continue to provide a lift to
sales in the years ahead.
So, as we find ourselves at the crossroads of time, reviewing 50 years of
accomplishment and growth, we also are looking ahead to the next 50 years with a sense
of excitement and confidence. Through changing times and evolving consumer
preferences, differentiation has been the constant in our success formula. By remaining
true to our roots, we’ve built a strong, growing brand, and we have proven multi-layered
strategies in place to keep Sonic growing.
The Ultimate Sonic Fan
Could there possibly be a Sonic customer more
enthusiastic or dedicated than Beverly Harris? A
teacher’s aide for special needs kids who lives in
Celina, Texas, yet visits the Frisco Sonic, she’s been
a Sonic customer since she was old enough to drive.
Beverly goes to Sonic up to four times a day, has tried
every item on the menu, and knows each of the 30
Frisco employees by name, including Mike Lewis, the
Frisco manager pictured with Beverly. She’s such a
fixture at the Frisco drive-in, she even makes and
gives gifts to employees during the holidays (and
does so much more for these employees and their
families throughout the year). We just couldn’t let
such loyalty go unrecognized, so in June 2003, as
part of our 50th Birthday Party, we named Beverly
our Ultimate Sonic Fan!
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