User:Josh.j.kiley/sandbox/Shadow-Sonic

History

Following World War II, Sonic founder Troy N. Smith Sr. returned to his hometown of Seminole, Oklahoma, where he became employed as a milkman. He decided to work delivering bread because bread is lighter than milk. Soon afterwards, Smith purchased the Cottage Cafe, a little diner in Shawnee, Oklahoma. Before long, he sold it and opened a fast food restaurant, Troy's Pan Full of Chicken, on the edge of town. In 1953, Smith joined with a business partner to purchase a five-acre parcel of land that had a log house and a walk-up root beer stand named the Top Hat. The two continued operating the root beer stand and converted the log house into a steak restaurant. After realizing that the stand was averaging $700 a week in the sale of root beer, hamburgers, and hot dogs, Smith decided to focus on the more-profitable root beer stand. He bought out his business partner.

Originally, Top Hat customers parked their automobiles anywhere on the gravel parking lot and walk up to place orders. In Louisiana, Smith saw a drive-in that used speakers for ordering. He suspected that he could increase his sales by controlling the parking and having the customers order from speakers at their cars, with carhops delivering the food to the cars. Smith borrowed several automobiles from a friend who owned a used-car lot to establish a layout for controlled parking. He also had some so-called "jukebox boys" wire an intercom system in the parking lot. Sales immediately tripled. Charles Woodrow Pappe, an entrepreneur, saw the Shawnee drive-in and was impressed. He and Smith negotiated the first franchise location in Woodward, Oklahoma, in 1956, based on a handshake. By 1958, two more drive-ins were built, in Enid and Stillwater.

Sonic Drive-In neon sign at the Oklahoma History Center

Upon learning that the Top Hat name was already trademarked, Smith and Pappe changed the name to Sonic in 1959. The new name worked with their existing slogan, "Service with the Speed of Sound". After the name change, the first Sonic sign was installed at the Stillwater Top-Hat Drive-In. This was the first of three Sonics in Stillwater. The original Sonic with the first sign was demolished and renovated in May 2015. Although Smith and Pappe were being asked to help open new franchise locations, no real royalty plan was in place. The pair decided to have their paper company charge an extra penny for each Sonic-label hamburger bag it sold. The proceeds would then be split between Smith and Pappe. The first franchise contracts under this plan were drawn up, but still no joint marketing plan, standardized menu, or detailed operating requirements were in place.