Sonic Signs on Franchises Throughout California

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Diet Cherry Limeades and Watermelon Slushes are coming to Los Angeles.

Drive-in fast food restaurant chain Sonic, which features those sweet treats on its menu, announced Monday the expansion of new franchise agreements, bringing the total number of new drive-ins across California over the next seven years to 33.

The state’s newest drive-ins will open in Los Angeles, Palm Springs, Central Valley and Northern California including Sacramento and the Bay Area.

“Sonic is excited about Southern California for several reasons. The weather is great and it’s a perfect fit for our brand. We hear from a lot of consumers who want a Sonic Drive-In nearby,” said John Budd, chief development and strategy officer for Sonic, in an email to the Business Journal. He added, “Our Southern California franchisees have seen some really big store openings in recent years and are continuing to experience tremendous success.”

The fast food chain, headquartered in Oklahoma City, has traditionally gained revenues from franchisee royalties. For the fiscal year 2015, company profits increased to $64.5 million, or $1.20 a share, compared to $47.9 million, or 85 cents a share in the same period a year earlier.

Franchising revenues also increased $24.2 million, or 17 percent during fiscal year 2015.

The Sonic system is comprised of 3,526 drive-ins, of which 89 percent are franchise drive-ins.

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