3725. SONIC Drive-In

SONIC Drive-In is an American drive-in fast-food restaurant chain based in Oklahoma City, Oklahoma, complete with carhops who sometimes wear rollerskates. As of August 31, 2011, there were 3,561 restaurants in 43 U.S. states, serving approximately 3 million customers per day. In 2011, it was ranked 10th in QSR Magazine’s rankings of the top 50 quick-service and fast-casual restaurant brands in the nation. The chain is distinguished for its use of carhops on roller skates, and annually hosts a competition to determine the top skating carhop in its system. The company also hosts the Dr Pepper SONIC Games, an internal competition between drive-in employees. Its slogan is “America’s Drive-In.” Following World War II, Troy N. Smith Sr., SONIC's founder, returned to his hometown of Seminole, Oklahoma, where he became employed as a milkman. He decided to work delivering bread because bread was not as heavy as milk. Soon afterwards, Smith purchased the Cottage Cafe, a little diner in Shawnee, Oklahoma. Before long he sold it and opened a fast food restaurant, Troy's Pan Full of Chicken, on the edge of town. In 1953, Smith went in with a business partner to purchase a five-acre parcel of land that had a log house and a walk-up root beer stand, already named the Top Hat. The two men continued with the operation of the root beer stand and converted the log house into a steak fast food restaurant. After realizing that the stand was averaging $700 a week in the sale of root beer, hamburgers and hot dogs, Smith decided to focus on the more-profitable root beer stand. He also bought out his business partner. Originally, Top Hat customers would park their automobiles anywhere on the gravel parking lot and walk up to place their orders. However, on a trip to Louisiana, Smith saw a drive-in that used speakers for ordering. He realized that he could increase his sales if he could control the parking and have the customers order from speakers at their cars. Carhops would deliver food orders to customers. Smith borrowed several automobiles from a friend who owned a used-car lot to establish a layout for controlled parking. He also had some so-called "jukebox boys" come in and wire an intercom system in the parking lot. Sales tripled immediately and his little root beer stand was on its way to becoming a huge success. Charles Woodrow Pappe, an entrepreneur, stopped — by chance — at the Shawnee drive-in and was very impressed. He got out of his car and began to take measurements of the stalls, trying to determine why they were not all the same size, assuming that it was an essential ingredient of the business plan. Smith came out and introduced himself and explained that the stalls were different sizes simply because different-sized automobiles had been used when he laid out everything. The two men hit it off and based on nothing more than a handshake in 1956, negotiated the first franchise location in Woodward, Oklahoma. By 1958, two more drive-ins were built in Oklahoma (Enid and Stillwater). Upon learning that the Top Hat name was already trademarked, Smith and Pappe changed the name to Sonic in 1959. The new name worked with their existing slogan "Service with the Speed of Sound". After the name change, the first Sonic sign was installed at the Stillwater Top-Hat Drive-In. Because of that sign, the Stillwater Sonic is considered to be the first Sonic Drive-In; the original sign still can be seen there. Although Smith and Pappe were being asked to help open new franchise locations, there was, however, no royalty plan in place. The pair decided to have their paper company charge an extra penny for each SONIC-label hamburger bag it sold. The proceeds were to be split between Smith and Pappe. The first franchise contracts under this plan were drawn up by Smith's landlord, O.K. Winterringer, who was also his lawyer. At the time, there was no joint marketing plan or standardized menu and few operating requirements.