Sonic booms into region, one N.J. county at a timePublished: Sunday, August 31, 2008
www.pressofatlanticcity.com/106/story/243769.html MILLVILLE - They trained in the empty lot behind the Kohl's. First with just the trays, then with cups of water, and finally, balancing full orders of food. On their feet: laced-up roller skates. On their minds: Try not to fall.
These roller-skating servers - or carhops as they're referred to in the business - are part of a new push to saturate southern New Jersey with the nationally known (but regionally-scarce) fast food chain Sonic Drive-In, which had its first Cumberland County location open last month in Millville.
Area franchisee Reyes Drive-Ins believes Sonic has staying power. The franchise, headed by CEO Daniel Reyes,
is planning a dozen new locations in Atlantic, Cape May, Cumberland and Glouces-
ter counties. (Also in Camden County Clementon, Deptford,Voorhees) The restaurant at the Union Crossing Shopping Center in Millville was its first and only the second Sonic in the state, after the first one opened in Ocean Township, Ocean County, earlier this year. It was followed this month by a new restaurant in the Rio Grande section of Middle Township.
Company officials say a location in Somers Point could open in mid-2009.
So, as the product becomes more familiar, will Sonic be able to skate circles around its competition?
"The brand has a cult-like following in the South," said Ken-
neth Moran, chief operating officer for Reyes Drive-Ins, based in Fort Washington, Pa. "You don't see drive-ins like this anymore. You had the Stewart's and the Weber's and the A&Ws. You have not seen a good strong national (quick-service restaurant) come here in a long time; maybe not since Boston Market."
Boston Market's main competition is KFC. So-
nic, however, is facing off against heavyweights Mc-
Donald's, Burger King and Wendy's.
When comparing the chains, Moran says of Sonic: "This is a different concept."
That old Top Hat
they founded
The chain began in 1953 as Top Hat Drive-In in Oklahoma. It became Sonic in 1959, and today is the largest fast-food chain of its kind, with about 3,400 locations in the United States.
Patrons are served in an outdoor patio or can park their cars in stalls with individual electronic menus. The carhops skate back and forth between vehicles, carrying orders and correct change.
The menu consists of standard fast food fare, from hamburgers to chili cheese dogs, as well as breakfast burritos (served all day) and specialty fruit drinks and slushies.
A typical franchise fee is about $35,000. Moran said the investment in the Millville location was more than $1 million, including about $750,000 in construction costs.
Franchise fees have helped Sonic corporate, based in Oklahoma City, see growing profits. From fiscal year 2003 to fiscal year 2007, its total revenues increased by more than 72 percent, to $770.5 million. In that time, the Sonic franchise gained more than 400 new locations.
Although Sonics are still uncommon in many states - the first one in New Jersey opened in November on Route 9 in Ocean Township - its commercials have been playing to nationwide audiences.
Julie Ruth, an associate professor of marketing at Rutgers University in Camden, said the advertisements are one way to gain brand recognition while also appealing to prospective franchisees.
Sonic spent about $175 million in fiscal year 2007 for its media marketing - most of it primarily for television, according to a company filing with the U.S. Securities and Exchange Commission.
The ad "kind of triggers some excitement," Ruth said. "So when you see an actual (location), you say, 'Hey, there's a Sonic. Wow.' And the entertainment value it has is an easier sell than just saying, 'This is a great brand of beef.'"
'America's favorite restaurant'
Friends William Wendt, 21, and Tristan Mosser, 20, made a point to stop at the Ocean Township Sonic last week.
Wendt, of East Rutherford, Bergen County, said it was his first time at a Sonic. Mosser, of San Antonio, Texas, said he comes across the chain frequently back home.
"It's America's favorite restaurant," Mosser told his friend, playing off the company's trademarked slogan, "America's Favorite Drive-In." He likes the specialty drinks and the sandwiches served on two slices of thick Texas-style toast.
Part of the attraction, customers say, is the drive-in service.
During lunchtime and on the weekends, the Millville location buzzes with carhops rolling across the parking lot and cars circling for an empty stall.
Being unable to skate does not preclude someone from being a server.
"If they can't skate, they're just going to hustle," said Mark Garra, a director of operations with Reyes Drive-Ins. (To be safe, the company does not require skating during inclement weather.)
Head carhop Julie Guarrera, 18, of Lawrence Township, didn't do much skating before this job. Days before the opening, she practiced behind the nearby Kohl's with her co-workers under strict supervision from Sonic trainers.
One time on the job, she fell carrying an order: "I had bananas all up my apron," she said, smiling.
For server Stephanie Mauro, 17, the job is fun, although roller skating all day is no easy task.
"By the time I get home, my feet hurt," she said.
Beefiest profits
A sampling of the largest U.S.-based fast food hamburger chains based on their most recent annual revenue:
McDonald's $22.8 billion
Wendy's $2.44 billion
Burger King $2.23 billion
Sonic $770.5 million
Fatburger $43.6 million* (includes nonrestaurant operations by holding company)
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