Sonic Drive-In Restaurant Essay -- Business Analysis

The fast-food industry is changing everyday. There are modern products being introduced in the market and vernal slogans being cr ingested. The companies in the fast-food industry will do their best to crop the greater burger, and to make bigger and better fries. Founded in 1953, Sonic has bring the largest drive-in chain in the nation. Sonic was founded by Troy Smith, jr. in Shawnee, Oklahoma. His dream was to own his own business. Sonic Drive-In keeps the mid-fifties alive through its chain of drive-in restaurants, each complete with speaker-based ordering systems and carhop servers - some on roller skates. Sonics top competitors are McDonalds, Burger ability, and Wendys. McDonalds is the hint competitor in the fast-food industry. McDonalds has the most restaurants with 12,380 locations and has over 364,000 employees. Burger King has 11,350 outlets in 57 countries and territories worldwide. About 75% is located in the United States. Wendys is the third largest qui ck- return hamburger restaurant chain in the world, with more than 6,600 restaurants in North America and international markets. In Exhibit 1, this states the Porters Five Forces bewilder of Competition of The Restaurant Industry. Threat of new entrants Because the profit margins are so small, cost is low and anyone can enter into the quick-service restaurant business. Bargaining index finger of Buyers The National Restaurant Association showed that three out of ten guests concord that food that was prepared at a restaurant or a fast-food restaurant were an important factor in their everyday lives. The survey in addition stated that three out of five customers plan to eat on the premises of quick-service restaurants and seven out of ten said that plan to eat takeout or delivery. (Hitt, Ireland, & Hoskisson, pg. 367)Customers buy when they feel it is necessary giving them the velocity hand on the industry. Bargaining power of suppliers In the quick- service restaurant, the suppliers vary. They rightfully do not rely distributors as large restaurants do. Threat of new substitutes The restaurant industry is segmented into many parts full service restaurants ($120 billion) quick- service restaurants ($110 billion) away-from-home managed institutions, examples food services for schools and hospitals ($21 billion) and other food industries ($106 billion). (Marshall Jones, 1999). Rivalry among competi... ...que product differentiation but find ship canal to reduce cost to stay ahead. There is not a spotless solution in the industry. No one can predict the stinting because it is always changing. Sonics specialty menu has allowed the chain to differentiate. Through its increased selling efforts, Sonic will gain brand recognition and increase its customer base.Works Cited Hitt, Michael A Hokisson, Robert E. Ireland, RD. Strategic Management. 6th Ed., Masson, Ohio Souht. Wester 2005. Burger King. Burger King Corporation. http//www.bk.com/ Answe r.Com. Burger King Corporation. http//www.answers .com/burger%20 McDonalds. McDonalds Corporation. http//www.McDonalds.com/ Answer.Com.McDonalds Corporation. http//www.answers.com/topic/mcdonalds-s Marshall Jones& Co. Restaurants. http//marshalljones.com/new_page_30.htm Restaurant Business. Sonic Says salary Stalls Boosted Gains. http//www.restaurantbiz.com/restaurantbusiness/headlines/articles_display.jsp?vnu_content_id=1000853253 Wendys Restaurant. Wendys International. http//www.wendys.com/ Yahoo Yahoo. Yahoo Finance. http//finance.yahoo.com/?u