Sonic Drive-In Restaurant Essay -- Business Analysis

The fast- feed industry is changing everyday. thither are new products macrocosm introduced in the market and new slogans being created. The companies in the fast- fodder industry will do their best to make the greater burger, and to make bigger and better fries. Founded in 1953, sonic has become the largest cheat 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 1950s existent through its chain of drive-in eating houses, each complete with speaker-based ordering systems and carhop servers - just about on roller skates. Sonics top foes are McDonalds, Burger King, and Wendys. McDonalds is the leading 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 terzetto largest quic k-service hamburger restaurant chain in the world, with more than 6,600 restaurants in sum America and international markets. In Exhibit 1, this states the Porters Five Forces Model of disceptation of The Restaurant Industry. Threat of new entrants Because the profit margins are so small, salute is low and anyone can enter into the quick-service restaurant business. Bargaining Power of Buyers The matter Restaurant Association showed that three out of ten customers agreed that food that was prepared at a restaurant or a fast-food restaurant were an important factor in their everyday lives. The survey also express that three out of five customers plan to eat on the premise of quick-service restaurants and seven out of ten said that plan to eat portable or delivery. (Hitt, Ireland, & Hoskisson, pg. 367)Customers buy when they feel it is necessary giving them the upper dig on the industry. Bargaining power of suppliers In the quick- service restaurant, the suppliers vary. The y really do not rely distributors as large restaurants do. Threat of new substitutes The restaurant industry is segmented into many parts full service restaurants ($ great hundred 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 ways to fasten cost to stay ahead. There is not a perfect final result in the industry. No one can predict the economic because it is ever changing. Sonics specialty menu has allowed the chain to differentiate. Through its increased marketing efforts, Sonic will gain brand recognition and increase its customer base. whole caboodle 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/ Answer.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 Payment stable 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