Officials at Sonic Drive-In also did not return a request for comment. Please Sign In and use this article's on page print button to print this article. Dec 23, Related Content. Montgomery County neighborhood diner files for bankruptcy protection. Popular Newtown Square restaurant closes, files for bankruptcy. These price wars really kicked into high gear in , with the launch of McDonald's reformatted value menu.
In the wake, other major fast food chains began tweaking their own value menus, offering an array of items at heavily discounted prices. Sonic, on the other hand, was hesitant to stray from its own business model and really participate in the price wars, something that may be backfiring in the long run. Sonic does offer a range of constantly evolving deals and promotions , not to mention its daily happy hour offering half-price drinks and slushes.
At the end of the day, though, it seems many customers just can't help but answer the hypnotizing call of the dollar menu. Another factor in Sonic's struggling sales is the changing attitudes among consumers when it comes to what they want from a fast food dining experience.
In general, Americans have become more health-conscious , seeking out lower calorie options made with fresher, more natural ingredients. We've seen evidence of that in the rise of health-focused fast casual chains like Sweetgreen , Digg Inn, and Au Bon Pain. Meanwhile, Sonic has been rated on more than one occasion as the most unhealthy fast food chain in America.
A quick peek at their menu shows that even the most simple cheeseburger and fries combo can run you more than 1, calories, and it only goes up from there. In fact, the full array of Sonic blasts and other milkshakes are loaded with calories, fat, and added sugar across the board. In today's world of health-conscious consumers looking for low-carb options and less added sugars, Sonic's indulgent menu may only cut it on a cheat day, and that's simply not good for business.
When it comes to long term success, the key lies in marketing to future generations. And for Sonic, some of the chain's struggles may be traced back to its appeal among young people As it turns out, Sonic isn't a fan favorite among younger generations. The chain consistently ranks lower in surveys that cover Gen Z and Millennials' favorite fast food brands — if it even makes the list at all.
That's a big problem, when estimates show that within the next decade, millennials are set to be the biggest spenders on food and beverage products. Sonic knows that it needs to appeal to young people to stay relevant, and the company has employed a number of strategies to try and win over more young customers, including more digital advertising targeted social media campaigns. Unfortunately, it seems those efforts haven't quite paid off in full. By , Sonic knew it needed to make some changes to save its business.
Its sales were falling, it was in debt, and it needed resources. So, in September of that year, Sonic reached a deal with multi-brand restaurant conglomerate, Inspire Brands, which owns other niche restaurant chains like Arby's and Buffalo Wild Wings.
The deal with Inspire Brands was completed by the end of , along with a management shakeup for Sonic. Sonic's president at the time, Claudio San Pedro, took over as the head of the brand, under Inspire Brands leadership. A little more than a year after its acquisition by Inspire Brands, Sonic announced it was rolling out a new brand identity.
Some of the changes included a new marketing campaign, and adjusting Sonic's tag line from "This is how you Sonic" to "This is how we Sonic. Another update to Sonic's brand included a redesigned logo. Sonic announced the new logo in a twitter post in February of User comments slammed the new design, and begged for the old logo back. People complained about the new font, and the awkwardly shaped background. There are more than Sonic Drive-In franchises in 46 states. Note to readers: if you purchase something through one of our affiliate links we may earn a commission.
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