Sonic plans value menu
by Kelley Chambers
The Journal Record
December 16, 2008

OKLAHOMA CITY – Sonic Corp. plans to introduce a value menu at the end of December, with a handful of food items for about $1, citing tough economic times for consumers.

Paul Macaluso, vice president of marketing at Sonic, said the company will offer a value menu with about eight to 10 items for those watching their pocketbooks.An exact menu has not been revealed yet. It is the first time the chain has introduced a value menu.

“There will be a variety of products that people can make complete meals out of as well as have as sides or snacks,” Macaluso said.

The Oklahoma City-based drive-in chain has more than 3,500 locations across the country.

Mike Donohue, spokesman for the National Restaurant Association, said more restaurants across the board are beginning to expand value menus, or offer them for the first time to help customers and themselves.

“Restaurants are operating under a weak economy and nearly unprecedented food price inflation,” he said. “It’s a very difficult time for restaurants.”
Donohue cited U.S. Department of Labor numbers that showed food price inflation in 2007 ran at 7.5 percent, the steepest increase since 1981. For 2008 that number is expected to climb to 8 percent.

Donohue said restaurants are eyeing their bottom line, while trying to offer value to their customers and keep them coming in the door. This can be difficult, he said, since food costs amount to 33 cents on the sales dollar for most restaurants.

“This kind of economy lends itself to going the extra step to try to provide value,” Donohue said. “Restaurants have always done this, but in this kind of economic situation you’re seeing more of it.”

Macaluso said one step Sonic took in the last year to offer lower-priced drinks was the implementation of its happy hour program from 2 p.m. to 4 p.m., when all drinks are half-price.

On Monday, Sonic also reported systemwide same-store sales were expected to be below expectations for the first fiscal quarter of 2009, which ended Nov. 30.

Same-store sales for November are expected to be more positive. The company said that increase reflected a more aggressive, price-sensitive promotion versus September and October.

Partner drive-ins, where the company owns a majority interest, are reported to have lagged franchisee sales by about 4 percent, which is expected to have an adverse impact on operating margins and net income for the quarter.
Sonic plans to report its first-quarter results on Jan. 8.

I find it telling that Sonic introduces a value menu because of the economic times, yet there has been reports McDonald's may be eliminating parts or all of their $1 menu because of the economic times.

I personally love Sonic and have never figured out how a burger with so little meat tastes so good!

This is great news! I like Sonic, and I'd rather support them than McDonald's anyway. I've eaten both in the last week. I got food for me and my girlfriend off McDonald's value menu, and it cost about $6 for two large teas, two burgers, fries, and two pies. I ate at Sonic by myself the other night; I got a bacon cheeseburger and some cheddar bites, and it was $7.50. I can get an Irma's no name burger for that price!

Ohhhhhh, think there is any chance they will bring back Pickle-O's for the value menu? I love me some fried pickles!

Kewl, this offsets having lost a little community value card for Sonic. Lots of little BOGO stickers, most of which were never collected, even when offered. That little card, bought off a youth shucking them for a fundraiser, combined with two Sonics within 1.5 miles of home and another 0.5 from work, sure got a lot of use before I dropped it somewhere. I hope it found its way to a nice wallet or purse and isn't shivering in some drainage ditch.

Amen to that! I love pickle-o's! As far as the items they probably will put on there, I'm thinking stuff like corn dogs, jr. burgers, small fries. Any other thoughts?

I'd support that too. I wish they would quick taking them off the menu and then bringing them back like every 3 years. Keep them on the menu please, at least here locally.