Sonic 2013 Annual Report Download - page 16

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14
We have expanded to 15 new
states in recent years,
significantly increasing our
market reach and successfully
entering many markets along
the northern tier of states. In
doing that, we have transformed
Sonic into a true national brand
– a brand that is stronger than
ever and resonates with
customers as one of the most
differentiated in the quick-
service restaurant industry.
During this expansion and, in
fact, throughout much of our
60 year history, franchisees have
fueled our growth. We realize
that our success depends on
that of our franchisees. That’s
why we are focused on
delivering the leadership, vision
and long-term strategic planning
that is mutually beneficial.
Franchisees currently operate
89% of our chain. Their
enthusiasm for Sonic reflects
hard economic facts as well as
blue-sky opportunities. These
facts include a strong and
growing return on investment –
even in smaller markets, thanks
to our new small-building,
lower-cost prototype drive-in,
along with renewed growth in
same-store sales and average
unit volumes – reflecting the
growing impact of a more
powerful national media
strategy, an innovative product
pipeline and improved operations.
Initiatives for 2013 included the
initial rollout of a new point-of-
sale system, designed to
improve customer service and
allow for better food and labor
cost management, along with a
supply chain management
system created to improve
forecasting, promotion planning
and product development.
That’s why Sonic has gained not
only the support of existing
franchisees, expressed in the
form of their commitments to
new drive-in development, but
also an increased level of
interest among experienced and
multi-unit operators who are
new to the brand. Even now,
having expanded to 44 states,
we still have numerous
territories available in markets
from coast to coast, giving
our operators plenty of room
to grow.
“e uniqueness of the Sonic brand has been a perfect
fit with the culture and climate of Southern California.
Sonic’s support of our drive-in operations and
development activity has been outstanding. We also value
the forward-looking investment the Company is making
in the new POS and how the supply chain is managed.
e entire system should benefit from both of these
projects. We appreciate the relationships that we
have developed within our franchisor’s
organization and look forward to many
mutually profitable years together.”
COASTTO COAST
3,500+ LOCATIONS
GOBIG
Max Gelwix
Current Franchisee, CA