Sonic Corporation

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to order as soon as they drove in, opposed to conventional practices
of waiting for a carhop to take an order. Delivery of the fresh fast-quality
products was do to the unique design of the kitchen, and the use of carhops.
Sonic Corporation preferred to do things as easy as possible and avoid
sophistication. Another strategy Smith implemented was a collection of
franchise royalties. This was done in a way such that Sonic franchise holders
were required to purchase printed bags at an additional fee that Smith arranged
through a paper-goods supplier.
Pyramid-type selling arrangements were formed by franchisees in money
making efforts by starting other franchises through friends. This lead to
original store managers having a percentage of their own store earnings and a
portion of the new operation of the recruited friend manager. This idea further
developed to multi-ownership of almost all Sonic operations as store managers
were also part owners. This concept of ...

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officer. The new comer, Lynn, was granted the decision to form his
own management team. This team was formed and implemented by mid 1984. By
implementing his own management team Lynn could begin to take problems head on,
after ridding the board members and franchise holders that had significant
conflicting interests that clouded the better judgement of Sonic.

NEW STRATEGIES

TURNING IT AROUND

In an attempt to turn the organization around, Lynn and his newly formed
management team set forth on a strategy that had three key factors: “(1) attack
problems concerning franchise attitude and Sonic's image; (2) improve
purchasing; and (3) improve communications.” Marketing was the key ...

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