Sonic 2001 Annual Report Download - page 9

THE DAILY CRUISER PAGE 9
■By Avery Gooday
Trends
The secret is out and the word is spreading. For busy moms and dads,
Sonic is a lifesaver after a hard day’s work or when the family just
needs a break from kitchen duty. For those on the go during the day,
there’s no faster place to stop for lunch, and on weekends following the
kids’ practice or game, the Drive-In rules when it comes to treats, and for
teens, the local Sonic has always been a favorite hangout in the afternoon
or after a movie.
It seems that everyone finds something to like about Sonic. What is not
readily apparent, however, is the way the company has developed its sales
throughout the day, expanding its menu with appealing selections that
draw customers at times between the noontime and evening meals. This
movement gained momentum in 1996 with the company’s introduction of
its Frozen Favorites®desserts and Fountain Favorites®drinks program,
a collection of neat drinks and treats to satisfy the
urge for a quick snack or break in the mid-
afternoon, or to cap a great evening out
with a tempting dessert. This program
has produced phenomenal results for
Sonic, building its business across the
afternoon and evening day parts
and diversifying its sales among a
wider range of products.
Roughly 40% of Sonic’s business
occurs between 2 o’clock and
5 o’clock in the afternoon
and after 8 o’clock in the
evening.
Not coincidentally, Sonic’s
same-store sales also experienced a healthy surge after that
introduction, and now the company has begun to build on
that successful record of product innovation with other new
programs. One of these involved the birth of the Sonic Nights
program, geared toward driving evening sales in the warmer
summer months. Perhaps even more potential lies with the
announcement last year that Sonic was testing breakfast on a
limited basis. The company carefully monitored and slowly
expanded breakfast to about 400 drive-ins by the end of fiscal 2001.
Of course, like everything else on its menu, breakfast at Sonic could not
be just the ordinary selection that is found elsewhere. Rather, continuing
its legacy of differentiation with the usual flair for product development,
Sonic offers unique items like bacon or sausage burritos, fruit taquitos,
Breakfast Toaster™ Sandwiches, and more.
And if this kind of menu doesn’t set Sonic apart, two more things will.
This hearty breakfast fare, where currently available, is made-to-order
just like everything else at Sonic, so load up the bacon, cheese or sausage
when you order that Breakfast Toaster™ Sandwich. Also, try to find
another full-menu fast-food place that serves breakfast from open to
close. Hamburger enthusiasts can order the Number One or Number
Two (with an ADD-itude!™) in the morning, while breakfast devotees
can satisfy their cravings no matter what time their day starts.
So why the excitement about breakfast at Sonic, aside from its obvious
potential for driving the company’s record for same-store sales growth?
First, it allows the company to continue to expand into attractive day parts,
diversifying its sales throughout the day. With the past success of its other
day part initiatives, like the Frozen Favorites®desserts and Fountain
Favorites®drinks program, Sonic already has developed an enviable
balance in its day parts compared with the rest of the fast-food segment.
Second, the breakfast menu integrates easily into the daily routine of a
Sonic Drive-In, enhances store-level management infrastructure, and
makes the drive-in more efficient by leveraging its fixed
costs over extended hours.
The company plans to capitalize
on all of these advantages
in the coming year,
expanding breakfast
to at least 10 new
markets and doubling
the number of partic-
ipating drive-ins to
800, or about one-
third of the chain,
beginning spring
2002. So, for you
lucky Sonic fans in
these markets, wake up!
Breakfast is ready. ■
GIVING NEW
MEANING TO
YOUR MORNING.
Fruit Taquitos
Bacon, Egg and
Cheese Toaster®Sandwich
Day Part Mix
Comparison
Sonic vs. Other Quick-
Service Restaurants
Morning 11%
Lunch 48%
Afternoon 3%
Dinner 36%
After Dinner 2%
QSR
Morning 3%
Lunch 33%
Afternoon 21%
Dinner 26%
After Dinner 17%
Sonic
Morning 11%
Lunch 48%
Afternoon 3%
Dinner 36%
After Dinner 2%
Morning 3%
Lunch 33%
Afternoon 21%
Dinner 26%
After Dinner 17%
™