Sonic 2007 Annual Report Download - page 12

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Many think of Sonic as the most
differentiated brand in QSR, and we
want to keep it that way. Despite a
crowded field of competitors who try to
emulate our success and evolving
consumer preferences, we continually
implement strategies for staying fresh in
the minds of consumers. We strive to
make Sonic the most-loved restaurant
brand in America. This same passion
applies to the look of our drive-ins, for
we recognize this too must evolve over
time to ensure Sonic's legacy as the
destination for fun
and great food.
Working closely with our franchisees, we
have developed a retrofit package to
update the look of our older drive-ins,
while preserving what has made Sonic
so successful. The retrofit package
refreshes Sonic's "curb" appeal with a
distinctive new tower, improved menu
housings, LED signage and a significantly
enhanced patio area. Optional drive-
thru lanes also figure prominently in our
new drive-in design, a feature that is
increasingly essential as we expand to
colder-weather markets and that gives
us greater flexibility to extend operating
hours where practical. We've also
added new energy-efficient lighting
that enhances the visual interest of
our drive-ins after dusk and
reduces operating costs.
It's easy to see that these
exterior changes fit logically
with other efforts to build our
brand, highlighting the unique
dining experience that can be
found only at Sonic. The retrofit
also has proven to be a solid sales-
driving strategy; our last program
completed in the late 1990s paid off
nicely with sustained same-store sales
growth. We believe our new program
will provide the same kind of boost over
the next several years as it is fully
implemented – offering heightened
appeal to our customers while assuring
a Sonic experience they have come to
know and enjoy.
Surprise and delight.
Since establishing the final elements
of the retrofit program during fiscal
2006, we retrofitted more than 600
partner and franchise drive-ins through the end
of fiscal 2007. Next year, we plan to complete
750-850 additional retrofits.
Pg. 10