Sonic 2012 Annual Report Download - page 10

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In fiscal 2012, Sonic developed a
smaller-footprint drive-in to enable
our franchisees to capitalize on
development opportunities. With
its lower costs to build and
operate, it provides an ideal
vehicle for our franchisees to
enter smaller markets that might
not be able to sustain our
traditionally larger drive-ins. On
the other hand, the new smaller
drive-in is a versatile way to further
develop larger markets that are
well established or where land
availability is limited. Either way, the
new small Sonic Drive-In means
added flexibility in our business
model, lower up-front capital and
reduced operational risk.
For almost 60 years, Sonic has
been a franchise-driven business,
with our franchisees providing
strong leadership for the brand
in so many areas, including new
drive-in development. We think
the addition of our small-format
drive-in will help reignite overall
development activity over time by
making the economics of expansion
more attractive for franchisees.
This, in turn, will contribute to a
stronger development pipeline
and enhanced future growth,
taking us to new places like
never before. You see, sometimes
less can be more. More opportunity.
More sales. More profit.
Bringing the Sonic
experience to more
of America.
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