Sonic 2002 Annual Report Download - page 10

Agile.
An entrepreneurial spirit has always been alive and well at Sonic, creating an
environment for success and driving a determination to stand out from the competition
in every way possible. While other quick-service companies shun change and seem to
sacrifice quality and service to compete on price alone, Sonic thrives on diversity in its
menu and operations, and prizes the flexibility to pursue innovations that meet and
exceed the changing taste and quality expectations of quick-service customers.
The latest signs of Sonic’s innovations can be found as easily as looking on the
menu, now strengthened with new initiatives for all day parts. Perhaps the most
important of these is the arrival of breakfast at Sonic. Just like the rest of Sonic’s menu,
it’s different – from Breakfast Burritos to Pancake on a Stick – and available all day long.
No reason to get up early to beat the clock. This addition translates into new customers
for the brand and even more reasons for already-loyal customers to return to Sonic.
But the best part of breakfast at Sonic is the way it fits strategically with the
company’s growth objectives. With other quick-service concepts deriving about 11% of
their sales from the morning day part versus Sonic’s current mix of 6%, the opportunity
for Sonic is significant. Moreover, operators have embraced the program as they have
witnessed its success firsthand. They are still experiencing volume gains in the second
and third years since the original test, and along with these increased sales, breakfast
also creates higher drive-in profits since it requires little capital investment to extend
operations into the morning hours.
Clearly, Sonic’s roots as a franchising organization help account for the company’s
spirit of innovation, and its solid relationship with franchisees puts muscle behind the
brand promise. The company’s franchisees have traditionally led the company’s menu
development program, originating many of the hit products that continue to please
customers – great ideas like Sonic’s Toaster® sandwiches and new chicken wraps, for
instance. As an active partner in building the Sonic brand, these franchisees have
played an integral role in developing operational and service programs that, adopted
system-wide, help ensure that the best Sonic experience is never a one-time phenomenon.
Flexibility
may be one of the most important
ingredients in QSR.
Flexibility
may be one of the most important
ingredients in QSR.