Sonic Corporation

In 1953 was founded by Tony Smith in Shawnee, Oklahoma
under a different name of the Top Hat. Tony Smith started the company as a
drive-in restaurant featuring hot dogs, hamburgers, and french-fried onion rings.
In the mid-50s Smith was asked by Charles Pappe for assistance in establishing
a similar restaurant in a rural town also located in Oklahoma. This was the
beginning of a partnership between the two men .


In 1991 Sonic Corporation was the fifth largest chain in the fast-food
industry, servicing in the hamburger segment, behind McDonald's, Burger King,
Hardee's, and Wendy's. Sonic has and is still carrying the tradition ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

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 ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.

Already a member? Login

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.



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 ...

Succeed in your coursework without stepping into a library.
Get access to a growing library of notes, book reports,
and research papers in 2 minutes or less.


Sonic Corporation. (2003, December 27). Retrieved February 24, 2019, from
"Sonic Corporation.", 27 Dec. 2003. Web. 24 Feb. 2019. <>
"Sonic Corporation." December 27, 2003. Accessed February 24, 2019.
"Sonic Corporation." December 27, 2003. Accessed February 24, 2019.
Join today and get instant access to this and 50,000+ other essays

Added: 12/27/2003 07:58:05 AM
Category: Economics
Type: Premium Paper
Words: 1460
Pages: 6

Save | Report


Save and find your favorite essays easier

Bill Gates
Microsoft Corporation
TQM In An Accounting Environmen...
Managing The Transition From Ma...
The Federal Deposit Insurance C...
E-corporation And Their Busine
Iomega Corporation Data Storag
A Financial Evaluation Of Gener...
William Henry Gates
Birmingham Steel Corporation
Copyright | Cancel | Contact Us

Copyright © 2019 Essayworld. All rights reserved