What visitors to Sonic do discover is cooked-to-order burgers, hot dogs called Coneys, fresh-cut onion rings and, of course, fries and shakes. Likewise, customers won't find burritos or pasta. No Nonsense In keeping with its no-nonsense theme, Sonic doesn't even have chicken nuggets or salads on its menu. And now that they're making money, you don't see them out buying airplanes, new offices and things like that. "They've taken a mediocre chain and turned it around. "You look at their track record and you have to say, hey, these guys have done a great job," Geraty said. Geraty offers kudos to Lynn and his management team for staying focused and disciplined. "The numbers I see indicate that these guys are making more money than they ever have," Geraty said. "That is untouched by anybody in the fast-food business," said Lynn, a soft-spoken man with a Southern accent.Īnalysts who follow Sonic say the chain is as hot as one of its burgers fresh off the grill.ĭavid Geraty of Equitable Securities in Nashville, Tenn., thinks Sonic's continued performance will make its happy franchisees even happier. Furthermore, the chain has had same-store sales growth - from existing stores, not counting growth from new stores - for five consecutive years. Despite the nation's ongoing health craze, Sonic hamburgers are the chain's mainstay. If a person wants a burger, he'll grab a burger, he says. Grab a Burger Lynn, a 44-year-old former Kentucky Fried Chicken executive, is a firm believer that Americans talk thin and eat fat. They are basically leaving the fast-food business and becoming a dinner-house chain. "Our competitors have lost sight of what makes fast-food work," Lynn said during an interview in his office on the 14th floor of Sonic Center, the chain's modest headquarters in downtown Oklahoma City. Fast-food industry figures indicate he's right. The result: Lynn claims that Sonic leads the hamburger business in customer loyalty and in franchisees' returns on their investments. Offer fast service from a smiling carhop. Ride the trend of increasing take-out orders. Control growth, not going national or international. Continue to open in small markets, some near large cities, and aggressively expand in the Southeast. Advertise more often and more creatively. His basic strategy: Stay with a simple menu. He has defied trends in the sluggish fast-food industry in the process. " Lynn is credited with quietly bringing unity and profitability to the 1950s-style drive-in chain. We don't try to be all things to all people. "You need to stay focused on a few things, forming a market niche. "We're sticking to the business," Lynn said. Stephen Lynn, chairman and chief executive officer, aims to see that there never is. From its humble Oklahoma beginnings to its basic burger-and-fries menu, there's never been anything flashy about Sonic Corp.
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