Dive Brief:
- KBP Brands purchased 85 Sonic Drive-In units from Boom Inc. for an undisclosed amount, Sonic announced on Wednesday.
- The deal makes KBP a major Sonic franchisee, responsible for about 2.4% of the brand’s roughly 3,500 U.S. stores.
- KBP first bought into the Inspire Brands system in 2021 as an Arby’s franchisee, expanding its Arby’s portfolio to about 100 units.
Dive Insight:
KBP’s operational expertise and large scale could prove useful for Sonic. As a franchisee of Kentucky Fried Chicken, KBP was a driving force in KFC’s digital operations, launching a text engagement campaign at more than 840 KFCs in 2023, nearly a year before KFC released its own loyalty program. The franchisee operates about 1,000 stores in 32 states, making it one of the largest franchisees in fast food, according to the press release.
Boom operated about 94 Sonic locations last year when it was fined for child labor violations by the U.S. Department of Labor. Sonic did not respond to a request to clarify whether Boom retained any Sonic units following the deal with KBP.
Sonic has had a busy 2024. Earlier this year, the chain changed up its marketing strategy, launching a campaign to spotlight its menu changes. In June, the brand launched six new beverages targeted at Gen Z consumers; only one of those drinks contained caffeine in a shift away from the energy-heavy drinks strategy pursued by competitors like McDonald’s.
In July, the chain launched a permanent $1.99 value menu, designed with a cross-daypart appeal. At the end of July, Sonic debuted a premium cheeseburger called the Sonic smasher.
These efforts could boost sales at the brand’s units, which had an average unit volume of about $1.6 million in 2023, according to Sonic’s 2024 franchise disclosure document.
