Sonic 2007 Annual Report Download - page 7

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Geographic expansion has always been an
important element in growing the Sonic brand.
Strengthening our presence in existing markets
and extending our business to new states and
regions has taken us from hometown favorite in
Shawnee, Oklahoma, to more than 3,300 drive-ins
stretching across 34 states. Our franchisees, who
operate about 80% of our chain, have played a
key role in this expansion, developing new markets
and providing a solid and growing infusion of
franchise income to our revenue mix.
We are excited to emerge as a chain of
true national proportion in the QSR
industry. Increasingly, we are turning
our attention north, beyond our
traditional stronghold in the Sunbelt states, to
new markets in Delaware, Pennsylvania, Oregon,
Washington, and South Dakota. Our drive-in
format, with our distinctive combination of
made-when-you-order food and personalized
Carhop service, is well accepted in these cooler
climates – so much so that some of our highest
first-year sales for new drive-ins are being
achieved in these markets.
It's hard to separate the growth of our brand
from the success of our expansion strategy, for
each drives the other. With an unparalleled
record in QSR for same-store sales growth and
steady increases in drive-in level profitability,
Sonic offers franchisees and partners a solid
opportunity for personal and financial growth –
the chance to build the best small businesses in
America. These opportunities help account for
the strength of our development pipeline – the
largest in the company's history, with commitments
for more than 900 drive-ins. We are targeting
opening 180-200 drive-ins in fiscal 2008. So no
matter where you start on the compass, all
directions are great points of departure for
Sonic's growth.
Go East.
After working together in different endeavors for
about 20 years, Tom Scurria, Don Welsh and John
Luidens, partners in Simple Tie Ventures LP,
opened three drive-ins in Pennsylvania and
have set their sights on three counties that
surround Philadelphia.
Home is where the Sonic is.
North, south, east and west:
Pg. 5
GROWTH
GROWTH