Sonic 2006 Annual Report Download - page 17

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During fiscal 2006, we began to implement a new retrofit initiative that will both update and refresh the look
of our drive-ins. It has been 10 years since we introduced the last retrofit program, which took about four
years to roll-out through our system and contributed to the significant sales momentum we experienced in
the late 1990s. Now, as then, our partner drive-ins are spearheading this process. With early and extensive
consultation and involvement between company specialists and franchisees, we continued to make
modifications to the retrofit elements as the roll-out proceeded during the year in each test market. In making
these refinements, we were successful in maintaining the high-energy excitement and iconic Sonic look. At the
same time, we’ve reduced the investment amount per drive-in and have worked to lower ongoing operating
costs, particularly for utilities, making the retrofit more affordable for future implementation by our partners
and franchisees.We also have experimented with the addition of drive-thru lanes in tandem with the retrofit
– a new opportunity for us to the extent that it makes sense within the real estate footprint. In the drive-ins
that we retrofitted, sales increases have been very encouraging.
Sonic Corp. 2006 Annual Report
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