Sonic Corporation, founded as Sonic Drive-In and more commonly known as Sonic (stylized in all caps), is an American drive-in fast-food chain owned by Inspire Brands, the parent company of Arby's, Jimmy John's, Buffalo Wild Wings, Baskin-Robbins, and Dunkin'. Sonic, founded by Troy N. Smith Sr., opened its first location in 1953, under the name Top Hat Drive-In. Originally a walk-up root beer stand outside a log-cabin steakhouse selling soda, hamburgers, and hot dogs, Sonic expanded to over 3,400 locations in the United States. Sonic is known for its use of carhops on roller skates, and hosts an annual competition in most locations to determine the top skating carhop in the company. The company's core products include the "Chili Cheese Coney", "Sonic Cheeseburger Combo", "Sonic Blasts", "Master Shakes", and "Wacky Pack Kids Meals".
Following World War II, Sonic founder Troy N. Smith Sr., returned to his hometown of Seminole, Oklahoma, where he became employed as a milkman. He then decided to work delivering bread, because bread is lighter than milk. Soon afterwards, Smith purchased the Cottage Cafe, a little diner in Shawnee, Oklahoma. Before long, he sold it and opened a fast-food service, Troy's Pan Full of Chicken, on the edge of town. In 1953, Smith joined with a business partner to purchase a five-acre parcel of land that had a log house and a walk-up root beer stand named the Top Hat. The two continued operating the root beer stand and converted the log house into a steak 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 bought out his business partner.
Initially, Top Hat customers parked their automobiles anywhere on the gravel parking lot and walked up to place orders. In Louisiana, Smith saw a drive-in that used speakers for ordering. He suspected that he could increase his sales by controlling the parking and having the customers order from speakers at their cars, with carhops delivering the food to the cars. 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" wire an intercom system in the parking lot. Sales immediately tripled. Charles Woodrow Pappe, an entrepreneur, was impressed by the Shawnee drive-in. He and Smith negotiated the first franchise location in Woodward, Oklahoma, in 1956, based on a handshake. By 1958, two more drive-ins were built, in Enid and Stillwater.
Upon learning that the Top Hat name was already trademarked, Smith and Pappe changed its name to the Sonic brand 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. This was the first of three Sonics in Stillwater. The original Sonic with the first sign was demolished and renovated in May 2015. Although Smith and Pappe were being asked to help open new franchise locations, no real royalty plan was in place. The pair decided to have their paper company charge an extra penny for each Sonic-label hamburger bag it sold. The proceeds would then be split between Smith and Pappe. The first franchise contracts under this plan were drawn up, but still no joint marketing plan, standardized menu, or detailed operating requirements were in place.
Sonic's founders formed Sonic Supply as a supply and distribution division in the 1960s. Under Smith, longtime franchise holders Marvin Jirous and Matt Kinslow were hired to run the division. In 1973, Sonic Supply was restructured as a franchise company that was briefly named Sonic Systems of America. It provided franchisees with equipment, building plans, and basic operational instructions. As the company grew into a regionally known operation during the 1960s and 1970s, the drive-ins were mainly in small towns in Oklahoma, Texas, Kansas, New Mexico, Missouri, and Arkansas. In 1967, the year Pappe died, the brand had 41 drive-ins. By 1972, this number had risen to 165, and by 1978, 1000.
In 1968, Sonic introduced the Pickles-Os, which are fried pickle slices.
In 1977, the company established the Sonic School for manager training. Franchisees operated most of the drive-ins and often made the store manager a business partner, a relationship that persists to this day.
In 1983, the company's board of directors hired C. Stephen Lynn as president. In 1984, Lynn hired attorney J. Clifford Hudson to head the legal department. Under Lynn, Sonic and its major franchisees began to encourage the development of local-advertising cooperatives, under the leadership of Keith Sutterfield as advertising manager and later as VP of marketing in which Sutterfield developed a field structure to work with the franchisees. New franchises began to expand the company into new areas and redevelop markets that had been unsuccessful in the past. These developments, combined with a major advertising campaign featuring singer and actor Frankie Avalon, led to significant growth and a new image that made Sonic a nationally recognized name. In 1986, Lynn, with a group of investors, completed a $10-million leveraged buyout and took the company private. The next year, Sonic moved its offices to leased space in downtown Oklahoma City and began to assume a higher profile in the community.
In 1991, Sonic became a publicly traded company again. By 1994, the corporation had renegotiated the franchise agreements with its franchisees.
During the mid-1990s, Sonic opened 100–150 new stores a year. Beginning in 1998, Sonic began a retrofit program, called "Sonic 2000", to redesign and update all 1,750 stores in its chain to what was called a "retro-future" look.
Hudson was named chairman of Sonic Corp. in January 2000.
In September of 2002, Sonic Corporation introduced PartnerNet to its franchisees, an intranet array of services that for the first time, digitally linked all Sonic Drive-in locations to Sonic Corporation. The new intranet was via Hughes Satellite Services and provided advancements like credit card processing and video training. The compulsory service package was headlined with the introduction of Sonic Live Radio by StudioStream Signature Sound, featuring a toll-free request line, 866-SONIC-FM, and live on-air personalities. The live radio style was first of its kind for corporate America, later emulated by the likes of Walmart. Sonic Live Radio, in beta since 2001, was released to all locations in February 2003.
Sonic gained further attention in 2003 following the release of comedic reality show The Simple Life starring Paris Hilton and Nicole Richie. Hilton and Richie, previously with no experience in having a job, had to work in a Sonic site in Altus, Arkansas.
Celebrating its 50th birthday in 2003, Sonic briefly added the Birthday Cake Shake to the menu. As a part of the anniversary celebration, Pickle-O's made another appearance as a recurring item. Development milestones celebrated in the 2000s include the opening of the 3,000th Sonic Drive-In in Shawnee, Oklahoma, and the 3,500th Sonic Drive-In in the Chicago market (Algonquin, Illinois). In October 2004, President Pattye Moore stepped down to spend more time with her family. On June 28, 2005, helped by new menu items and increased advertising exposure, Sonic Corp. reported double-digit increases in net income and revenue in the third quarter that year. On January 5, 2005, the company started to install card readers in the drive-in stalls at its 544 company-owned locations by the end of January that year. In 2007, the company opened its first stores in the Northeastern United States, in Waretown, New Jersey.
In 2009, Sonic partnered with DonorsChoose.org on a collaborative effort, Limeades for Learning, the chain's first systemwide cause marketing initiative. Public school teachers request needed supplies and materials and Sonic customers vote on how to allocate over $500,000 each autumn. In the first seven years of the program, Sonic and its franchisees donated more than $6 million and impacted learning for more than 349,000 students nationwide.