Get All Access for $5/mo

#3 on the Franchise 500: Sonic Drive-In Looks to the Future The #3 company on our Franchise 500 list may be built on the idea of nostalgia, but a new wave of tech-focused initiatives is laying a strong foundation for years to come.

By Matthew McCreary

This story appears in the January 2019 issue of Entrepreneur. Subscribe »

Courtesy of Sonic Drive-In

Started franchising: 1959
Total units: 3,606
Cost to open: $865K–$3.6M

What's old is new again.

When people talk about "companies of the future," they typically mean Silicon Valley flash -- not a drive-in burger-and-shake restaurant developed in 1953. But Sonic Drive-In believes its recipe of old-timey service marries well with modern tech, and the numbers back it up. There are now more than 3,600 Sonics in the U.S. That focus on tech and service helped propel Sonic to the #3 spot in the Franchise 500, up from #6 in 2018.

Related: 7 Fast-Food Franchises Had More Sales Than Chick-fil-A Last Year. Can You Name Them?

"People perceive the drive-in as retro," says president Claudia San Pedro, "but we were really built for the future."

For Sonic, that vision begins with its app. It implemented an "order ahead" feature in July and has worked to expand its availability across the country since. Now customers can order before they arrive -- and when they arrive, Sonic's antique setting becomes suddenly very relevant. Customers can park their cars in a stall, check in, and receive their food via carhop without waiting in a drive-through line or a crowded mobile-pickup area. Sonic argues that it's a more comfortable, easy, and efficient operation than its competitors can offer. (Of course, customers can also still drive up and order from the stalls.)

Related: How These Franchisees Keep Their Young Workforce Motivated

With app-based orders rising, San Pedro says Sonic has an even bigger goal for 2019: using mobile-order data to target marketing to individual customers, letting them know about the products most relevant to their specific interests. "Our goal," she says, "is to learn exactly what our consumer likes and personalize messages on a one-to-one basis."

To see our complete Franchisee 500 rankings, please click here, or view more stories here.

Matthew McCreary

Entrepreneur Staff

Associate Editor, Contributed Content

Matthew McCreary is the associate editor for contributed content at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business News

Apple's AI Has a Catch — And It Could Help Boost Sales

Not every iPhone owner will get to use the new Apple Intelligence.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.

Business Culture

You'll Always Have Anxious Employees if You Don't Follow These 4 Leadership Tactics

Creating a thriving workplace environment hinges on the commitment of company leaders to nurture and inspire their teams.