Analysis of Sonic Corporation Essay -- Sonic Corporation Fast Food Ess

Analysis of Sonic Corporation In 1953 Sonic Corporation was founded by Tony smith in Shawnee, Oklahomaunder a contrary name of the Top Hat. Tony Smith started the political party as adrive-in restaurant featuring hot dogs, hamburgers, and french-fried onion rings.In the mid-50s Smith was asked by Charles Pappe for assistance in establishinga similar restaurant in a rural town also located in Oklahoma. This was thebeginning of a partnership between the twain men .CURRENT INFORMATION In 1991 Sonic Corporation was the fifth largest chain in the fast-foodindustry, servicing in the hamburger segment, behind McDonalds, Burger King,Hardees, and Wendys. Sonic has and is calm down carrying the tradition of being ahigh-quality franchise-based organization in the Sunbelt states. The followingcase will be broke down into five different stages beginning with prematurestrategies, problems, new strategies, a ratio analysis, and a recommendation.EARLY STRATEGIESUNDER TONY SMITH Ton y Smith introduced the Top Hat as a drive-in restaurant that lessenstart up cost by not having eat-in space. This new restaurant featured drive-installs for automobiles, that were equipped with a two-way intercom changecustomers to order as soon as they drove in, opposed to conventional practicesof waiting for a carhop to take an order. Delivery of the fresh fast-qualityproducts was do to the unique role of the kitchen, and the use of carhops. Sonic Corporation preferred to do things as easy as possible and avoidsophistication. Another strategy Smith implemented was a collection offranchise royalties. This was d maven in a way such that Sonic franchise holderswere required to purchase printed bags at an additional fee that Smith arrangedthrough a paper-goods supplier. Pyramid-type selling arrangements were formed by franchisees in moneymaking efforts by starting other franchises through friends. This lead to maestro store managers having a percentageage of their own stor e earnings and aportion of the new operation of the recruited friend manager. This idea furtherdeveloped to multi-ownership of some all Sonic operations as store managerswere also part owners. This concept of pyramid-type selling carried Sonicforward with rapid growth.PROBLEMSRAPID GROWTH In the later-70s almost one new Sonic store... ...the past year. This ratio alsomeasures the risk that a company has in financing its debt.RESEARCH IN 1992 explore in 1992 shows that Sonics typical customer is female betweenthe age of 18-24 with an average income between $10,000-$15,000. Forty-sixpercent of Sonics business was done during lunch hours, and 44 percent doneduring supper. Sonics average meal price was $2.25.CONCLUSION AND RECOMMENDATION Sonic Corporation is an ever improving company that is striving forefficiency, freshness, and quality. Over the life of the company counselling hasalways been trying to increase profits and taking steps into the future. SonicCorporation also learned that in maximizing profits one must incorporate all theingredients from attitudes of the mangers and owners to the products they offertheir customers. In looking at the ratios Sonic Corporation is looking stronger everyyear. I would recommend to keep management minds striving to new and betterinnovations that could again revolutionize the company as it had under theleadership of Mr. Lynn. In doing so the company assure itself and ever tenaciouslife in the fast-food drive-in industry.