Clifford Hudson is doing it again

Clifford Hudson ran Sonic Drive-In for 23 years. He left in December 2018, when Inspire Brands, an affiliate of Roark Capital, closed its purchase of the chain. He was 64 and could have stopped. Instead, he bought a 10-unit fast-casual concept in Oklahoma City called Bee Healthy Café, then spent most of 2024 negotiating for a nearly identical chain, Nature's Table, on behalf of an investment group he formed with old Sonic hands. The group is called DIA Equity Partners. DIA stands for Do It Again. Restaurant Business reported the deal this April. Together, the two brands have about 60 locations.

He told the CEO.com Podcast the Sonic story in October 2022, before any of that. It is worth hearing now, because it turns out to be the playbook.

Hudson did not intend to go into business. He majored in history at the University of Oklahoma and briefly considered teaching it, then went to Georgetown Law because a law degree seemed to leave the most doors open: business, government, politics, a practice. He came back to Oklahoma City to practice, which would have been fine except that it was the mid-1980s and the state was in an oil bust. Looking for clients, he started calling on a local drive-in chain where a former neighbor was a vice president.

How he got the job depends on which version you read. On the podcast, Hudson says Sonic turned the tables on him. "While I was pursuing them, they turned the tables and said, 'What we really want is we want you to come inside.'" In his 2018 retirement letter to Sonic employees, filed with the SEC, he says he answered an ad for assistant general counsel that a franchisee showed him. Either way, he was 29, the new CEO was 36, and Sonic had 968 drive-ins doing $283 million a year.

He was general counsel for eight years, through a leveraged buyout in 1986, a recapitalization two years later, and the 1991 IPO. Then CFO. Then, when he told his boss he was pushing 40 and thinking about seeing what else the world had to offer, COO. Eighteen months later, the boss left abruptly, and on the same day the board made Hudson CEO. That was 1995. The company that management and its partners had bought for $10 million in 1986 was worth about $200 million.

Sonic in 1995 had a problem Hudson only half understood, because nobody at the company talked about it. In the early 1990s, after the IPO, Dunkin' Donuts CEO Bob Rosenberg joined the board. At one of his first meetings, he asked how Sonic thought about its brand.

"My reaction was, 'What's a brand?'"

Rosenberg's answer, as Hudson recalls it, was that a brand is the sum of everything a customer sees: the building, the uniforms, the television spots, what's on promotion. Hudson says that from then on he thought about competitors much less than people assume. Not never. But the strategy was internal. Strengthen Sonic, and in a system that was 95 percent franchised, that meant one thing above all: make the operators more money.

The idea that did it was not his, and two of his senior officers tried to kill it.

In the summer of 1994, while Hudson was still COO, a franchisee with about 30 stores in the Carolinas came to see him. He said Sonic was about to hurt him. Two officers from Oklahoma City visited and told him to stop promoting ice cream because ice cream was Dairy Queen's business, not Sonic's. Hudson asked what ice cream represented at the operator's best store. Thirty percent of sales.

"I almost fell off my chair," he said. "I said, 'Don't change anything. Don't listen to those officers.'"

He sent marketing people to the Carolinas and folded what they found into a menu overhaul already underway. The two menu boards at every stall, which had always been identical, were split: food on the driver's side, drinks and ice cream on the passenger side in bigger pictures and brighter colors. Sonic tested it in Houston and New Orleans in the winter, on the theory that if you can sell ice cream in Houston in January, you can sell it anywhere in July. Frozen and Fountain Favorites went systemwide in April 1996. Media hit in May. Sales at the average store rose 12 percent that month.

Hudson did not see the daypart effect coming. Customers who had used Sonic for lunch and dinner started coming in the afternoon and after dark for a shake or a drink. The same buildings, equipment, and crews were now producing four meal periods instead of two. In calendar 1997, Hudson says, profit at the average drive-in was up 40 percent.

The timing mattered because of a fight that was already underway. A large cohort of franchisees who had signed on in the 1970s were watching their licenses expire, and Sonic used the renewals to impose the discipline it had never had: national purchasing contracts, a single ad agency, trade dress standards. Hudson says the company more or less copied Wendy's license agreement, because he admired Wendy's and because comparing the two documents showed him how little power Sonic actually had. Before the renewals, two Sonics in the same town could carry different menus, buy from different vendors, and serve different-sized patties. Operators groaned about the new rules. Then the ice cream money arrived and, Hudson says, "all that groaning stopped."

The margin story explains why. Between 1997 and 2001, profit margins at the average store improved by five percentage points, partly because national contracts bought better product for less. On a system doing $2 billion in sales, that is $100 million a year in operators' pockets that had not existed a few years earlier. "Doesn't take a very big stick when you got that," Hudson said. Flush operators retrofitted nearly the entire 40-year-old system between 1998 and 2000 without being pushed. Advertising went from about $25 million in 1997 to roughly $70 million in 2001 and $120 million by 2005. It had taken Sonic 44 years to reach $1 billion in systemwide sales. It reached $2 billion four years after that.

Asked about the pellet ice, the thing people who don't know anything else about Sonic know about Sonic, Hudson gave it away. "That was our founder, Troy Smith. That was one of his numerous brilliant innovations."

The second fight was over television. Sonic's franchisees paid for advertising through local co-ops and controlled the money, and they did not want to give any of it to a national cable buy. Then, by accident, Sonic got some national exposure during a NASCAR race, and the operators who saw their brand on the broadcast came in the next week asking how to get more. Hudson proposed carving half a point off the three percent marketing spend into a systemwide cable fund. College football followed. "It was like a drug," he said. By 2004, the split was two percent national, two percent local, and the "Two Guys" campaign, built with the agency Barkley on a hunch that audiences wanted the unscripted feel of Who Wants to Be a Millionaire, had a national audience. The campaign's first iteration actually sent the two actors through competitors' drive-throughs with a hidden camera. In one exchange, they asked for a product, and the employee told them they'd have to go to Sonic for that.

The one idea Hudson does claim is the card reader. Around 2001, he sat through a Visa presentation at a Nation's Restaurant News conference in Chicago and heard that restaurants accepting credit cards were more than twice as likely to get a working mother to stop for dinner on the way home. Sonic accepted cards, technically. A customer handed the card to a carhop, who took it inside, ran it, and brought it back. Cards were five percent of sales.

"No wonder people don't want to use a credit card," Hudson said. "They got to turn loose of it."

The model was the gas pump. Hudson had Sonic's tech group build a reader that bolted onto the menu housing at every stall. The average check was $5. With a card, it was $7. Hudson expected to have to force the readers on franchisees; instead, they asked whether they could put them on every stall and inside the store, and the rollout took 18 months. In 2001 Sonic did $2 billion in sales, about $100 million on cards. In 2018 it did $4.5 billion: $2 billion cash, $2.5 billion cards. "Virtually 100 percent of the incremental sales over the next 17 years were credit cards," Hudson said.

The podcast conversation does not dwell on how the tenure ended, so the record should. Sonic's last years as a public company were hard. In the quarter ending February 2017, systemwide same-store sales fell 7.4 percent, a quarter in which Sonic also sold 54 company drive-ins to franchisees and bought back 1.8 million shares, which is how it reported earnings-per-share growth of 14 percent on a shrinking business. The next quarterly filing attributed the decline in traffic to sluggish consumer spending and "aggressive competitive activity." The fiscal 2018 annual report reported another same-store decline. The Inspire deal, announced in September 2018 when Sonic had 3,606 drive-ins in 45 states, came after the growth had stalled. That does not diminish the $10 million-to-$2.3 billion arc. It does explain why a company that had been public for 27 years decided to stop being one.

Hudson's account of what he contributed is narrower than the numbers suggest, and he seems to prefer it that way. His book is called Master of None: How a Jack-of-All-Trades Can Still Reach the Top, and its argument is that the history major who became a lawyer, then a CFO, then a CEO never mastered any of it and didn't need to.

"What I did offer to our system for 23 years as CEO was good leadership and helped them move in a direction that transformed a lot of people's lives," he said. "I know it 20 years later, because they tell me so and because I see their lives are different."

The phrase in the title, he likes to note, was first aimed at a writer by a critic named Robert Greene, a rival playwright nobody reads anymore. The writer was Shakespeare.

Since the interview, Hudson has published a second book with former Sonic digital chief Craig Miller, Bricks and Clicks, on how the chain built out its mobile and point-of-sale technology in his final years as CEO. He is of counsel at Crowe Dunlevy in Oklahoma City, where his firm biography also lists his chairmanship of the Securities Investor Protection Corporation from 1994 to 2001, a presidential appointment, his years as a trustee of the Ford Foundation, and his term as chairman of the National Trust for Historic Preservation. And there is Fast Fresh Brands, the new parent for Nature's Table and Bee Healthy, whose plan Hudson described to Restaurant Business in terms anyone who has read this far will recognize: company stores in Oklahoma City, franchising everywhere else, common purchasing and marketing across both brands, and a lifestyle pitch to operators, since both are breakfast-and-lunch concepts. Hudson's partners include Miller, a former Sonic franchisee named Ted Kergan, and Neal Black, a former Sonic board member. He told the magazine the group has "good chemistry" and something to offer younger operators.

He is in his seventies. Sonic took 44 years to reach its first billion.

00:00:00 Cliff Hudson's Path to Sonic CEO
00:07:27 Discovering the Power of Brand
00:09:49 Renegotiating Franchise License Agreements
00:12:35 The Ice Cream Discovery That Changed Everything
00:17:51 System-Wide Retrofit and Explosive Growth
00:24:47 Franchise Model Advantages and Disadvantages
00:30:29 Creating the Two Guys Ad Campaign
00:37:00 Building the Credit Card Reader Innovation
00:42:44 Writing Master of None on Leadership

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Cliff,<00:00:09.936> thanks<00:00:10.180> so<00:00:10.342> much<00:00:10.569> for<00:00:10.748> coming<00:00:11.056> on.

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Yep.

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He<00:03:42.590> brought<00:03:42.815> me<00:03:42.911> in<00:03:42.991> to<00:03:43.088> meet<00:03:43.312> the<00:03:43.392> new<00:03:43.633> president<00:03:44.195> who<00:03:44.259> was<00:03:44.436> an<00:03:44.660> old<00:03:44.981> 36,<00:03:45.816> you<00:03:45.896> know.

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And<00:03:48.047> but,<00:03:48.994> but<00:03:49.234> I<00:03:49.636> also<00:03:49.973> thought<00:03:50.117> I'd<00:03:50.374> say<00:03:50.535> president.

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He<00:03:51.080> was<00:03:51.176> CEO.

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I<00:03:52.059> also<00:03:52.364> thought,<00:03:52.460> well,<00:03:52.541> they've<00:03:52.765> got<00:03:52.878> a<00:03:52.942> new<00:03:53.102> CEO.

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And<00:03:54.130> then<00:03:54.547> my<00:03:54.707> friend,<00:03:54.932> the<00:03:55.012> VP,<00:03:55.349> told<00:03:55.574> me<00:03:55.670> that.

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He<00:03:56.232> said,<00:03:56.456> "Look,<00:03:56.633> there's<00:03:56.953> probably<00:03:57.162> going<00:03:57.226> to<00:03:57.274> be<00:03:57.435> more<00:03:57.611> stuff<00:03:57.900> happening<00:03:58.461> here.

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We<00:03:58.717> got<00:03:58.797> a<00:03:58.813> new<00:03:59.038> guy,<00:03:59.519> a<00:03:59.663> younger<00:04:01.347> guy."<00:04:02.790> And<00:04:03.383> so<00:04:03.752> while<00:04:03.928> I<00:04:04.009> was<00:04:04.169> pursuing<00:04:04.730> them,<00:04:04.891> they<00:04:05.035> kind<00:04:05.131> of<00:04:05.291> turned<00:04:05.532> tables<00:04:06.574> and<00:04:06.735> said,<00:04:07.119> "You<00:04:07.296> know,<00:04:07.616> what<00:04:07.761> we<00:04:07.857> really<00:04:08.097> want<00:04:08.258> is<00:04:08.434> we<00:04:08.482> want<00:04:08.659> you<00:04:08.739> to<00:04:08.819> come<00:04:08.995> inside."<00:04:10.807> And<00:04:11.465> I<00:04:11.609> thought,<00:04:11.850> well,<00:04:12.507> you<00:04:12.539> know,<00:04:13.549> the<00:04:14.046> economy<00:04:14.591> challenging<00:04:15.153> as<00:04:15.313> it<00:04:15.409> is<00:04:15.618> here,<00:04:16.836> new<00:04:16.997> young<00:04:17.237> president,<00:04:17.862> things<00:04:18.119> are<00:04:18.215> going<00:04:18.311> to<00:04:18.360> happen<00:04:18.680> differently.

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And<00:04:19.706> so<00:04:19.947> I<00:04:20.685> left<00:04:21.230> private<00:04:21.647> law<00:04:21.807> practice,<00:04:22.288> joined<00:04:22.464> the<00:04:22.593> company<00:04:22.913> as<00:04:23.090> general<00:04:23.330> counsel.

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I<00:04:24.388> spent<00:04:24.757> 8<00:04:24.917> years<00:04:25.190> as<00:04:25.334> general<00:04:25.638> counsel.

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So<00:04:26.600> that's<00:04:26.776> my<00:04:27.001> transition.

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I<00:04:27.658> spent<00:04:27.898> 8<00:04:27.979> years<00:04:28.139> as<00:04:28.283> general<00:04:28.459> counsel,<00:04:28.860> but<00:04:29.100> really<00:04:29.405> learned<00:04:29.661> the<00:04:29.742> business<00:04:30.222> through<00:04:30.319> that<00:04:30.543> time.

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In<00:04:32.130> that<00:04:32.290> 8<00:04:32.466> years,<00:04:32.771> took<00:04:32.931> the<00:04:33.027> company<00:04:33.300> through<00:04:33.588> one<00:04:33.749> leveraged<00:04:34.229> buyout.

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And<00:04:35.351> then<00:04:36.313> 2<00:04:36.457> years<00:04:36.714> later,<00:04:37.034> a<00:04:37.179> recapitalization,<00:04:38.236> changing<00:04:38.958> ownership<00:04:39.454> in<00:04:39.599> which<00:04:39.983> management<00:04:40.801> came<00:04:41.041> to<00:04:41.121> own<00:04:41.362> more<00:04:41.586> of<00:04:41.666> the<00:04:41.746> company.

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And<00:04:43.365> then<00:04:43.526> finally<00:04:43.846> an<00:04:43.990> IPO<00:04:45.449> in<00:04:45.609> '91.

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And<00:04:46.972> then<00:04:47.132> when<00:04:47.228> the<00:04:47.372> company<00:04:47.693> went<00:04:47.917> public,<00:04:48.398> after<00:04:48.494> it<00:04:48.574> went<00:04:48.719> public<00:04:48.975> in<00:04:49.055> '91,<00:04:50.401> I<00:04:50.498> moved<00:04:50.738> from<00:04:51.043> general<00:04:51.299> counsel<00:04:51.700> to<00:04:51.860> CFO.

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For<00:04:53.278> a<00:04:53.310> short<00:04:53.632> period<00:04:53.873> of<00:04:53.922> time.

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Told<00:04:54.823> my<00:04:55.064> boss,<00:04:55.917> you<00:04:56.110> know,<00:04:56.754> I'm<00:04:57.172> approaching<00:04:57.719> 40.

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Oh<00:04:58.524> my<00:04:58.765> God,<00:04:59.007> I<00:04:59.071> was<00:04:59.232> approaching<00:04:59.795> 40.

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And<00:05:02.871> I<00:05:02.969> told<00:05:03.230> him,<00:05:03.932> you<00:05:03.981> know,<00:05:04.127> I<00:05:04.176> think<00:05:04.291> I'm<00:05:04.388> gonna<00:05:04.584> go<00:05:04.617> out<00:05:04.666> and<00:05:04.845> see<00:05:05.008> what<00:05:05.155> else<00:05:05.318> the<00:05:05.416> world<00:05:05.645> has<00:05:05.824> to<00:05:06.053> offer.

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And<00:05:08.016> he<00:05:08.080> said,<00:05:08.369> why<00:05:08.418> don't<00:05:08.610> you<00:05:08.691> stay<00:05:08.932> here<00:05:09.108> and<00:05:09.350> run<00:05:09.510> the<00:05:09.591> company?

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I'll<00:05:10.008> make<00:05:10.217> you<00:05:10.314> COO.

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And<00:05:11.663> I<00:05:11.695> said,<00:05:11.937> well,<00:05:12.322> that's<00:05:12.547> one<00:05:12.644> of<00:05:12.724> the<00:05:12.788> things<00:05:12.981> I<00:05:13.110> thought<00:05:13.222> I'd<00:05:13.351> check<00:05:13.608> out,<00:05:14.507> see<00:05:14.813> what<00:05:15.054> the<00:05:15.118> world<00:05:15.375> has<00:05:15.648> to<00:05:15.777> offer.

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That's<00:05:16.677> an<00:05:16.887> interesting<00:05:17.263> opportunity.

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So<00:05:18.760> I<00:05:18.825> stayed,<00:05:20.436> took<00:05:20.613> the<00:05:20.742> job<00:05:21.016> as<00:05:21.161> Chief<00:05:21.467> Operating<00:05:21.951> Officer,<00:05:22.853> began<00:05:23.240> kind<00:05:23.417> of<00:05:23.481> rebuilding<00:05:23.965> some<00:05:24.126> of<00:05:24.158> the<00:05:24.206> senior<00:05:24.545> management<00:05:25.109> team,<00:05:25.528> so<00:05:25.753> on.

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And<00:05:27.285> like<00:05:28.253> a<00:05:28.318> year<00:05:28.802> and<00:05:28.883> a<00:05:28.963> half<00:05:29.609> after<00:05:30.029> he<00:05:30.093> had<00:05:30.206> made<00:05:30.577> me<00:05:30.771> COO,<00:05:31.142> or<00:05:31.885> after<00:05:32.111> I'd<00:05:33.176> come<00:05:33.402> into<00:05:33.580> the<00:05:33.660> COO<00:05:34.145> position,<00:05:36.108> he<00:05:36.284> left<00:05:36.686> rather<00:05:36.927> abruptly.

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And<00:05:38.839> at<00:05:39.096> that<00:05:39.321> same<00:05:39.578> day<00:05:40.124> that<00:05:40.237> he<00:05:40.381> left,<00:05:40.703> the<00:05:40.847> board<00:05:41.088> made<00:05:41.265> me<00:05:42.229> CEO<00:05:43.129> of<00:05:43.274> the<00:05:43.354> company.

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At<00:05:44.157> that<00:05:44.382> time,<00:05:44.623> I'd<00:05:44.784> been<00:05:44.945> there<00:05:45.170> 11<00:05:45.554> years.

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And<00:05:48.926> had<00:05:49.103> learned<00:05:49.343> the<00:05:49.488> business<00:05:49.905> pretty<00:05:50.130> well,<00:05:50.387> I<00:05:50.612> think,<00:05:51.913> in<00:05:52.635> at<00:05:52.715> least<00:05:52.956> how<00:05:53.117> we<00:05:53.277> made<00:05:53.438> money<00:05:53.743> and<00:05:53.823> didn't<00:05:54.000> make<00:05:54.225> money.

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So<00:05:55.461> they<00:05:55.606> made<00:05:55.766> me<00:05:55.911> CEO<00:05:57.934> in<00:05:58.014> '95,<00:05:59.122> and<00:05:59.283> in<00:05:59.443> 2000,<00:06:01.290> I<00:06:01.322> became<00:06:01.691> chairman<00:06:01.948> of<00:06:02.029> the<00:06:02.173> board.

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So<00:06:02.896> it<00:06:02.992> was<00:06:03.153> a<00:06:03.233> progression<00:06:05.465> over<00:06:05.642> time<00:06:06.428> and<00:06:06.990> one<00:06:07.167> that,<00:06:07.488> you<00:06:07.520> know,<00:06:07.954> I<00:06:08.114> kind<00:06:08.291> of<00:06:08.436> adapted<00:06:08.933> to<00:06:10.138> play<00:06:10.378> points<00:06:10.684> in<00:06:10.780> time,<00:06:11.101> but<00:06:11.246> a<00:06:11.567> fascinating<00:06:11.888> experience.

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I<00:06:12.353> was<00:06:12.402> CEO<00:06:12.867> for<00:06:13.028> 23<00:06:13.510> years.

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Until<00:06:14.891> it<00:06:14.955> was<00:06:15.116> acquired<00:06:15.742> in<00:06:15.903> December<00:06:16.240> of<00:06:16.321> 2018<00:06:17.847> by<00:06:18.875> an<00:06:19.694> affiliate<00:06:20.192> of<00:06:20.562> Roark<00:06:21.060> Capital.

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And<00:06:23.614> by<00:06:23.871> the<00:06:23.951> way,<00:06:24.273> that<00:06:24.514> transition<00:06:25.863> in<00:06:26.024> '86,<00:06:26.586> we<00:06:26.747> bought<00:06:26.988> the<00:06:27.084> company<00:06:27.469> for<00:06:27.710> $10<00:06:27.967> million.

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When<00:06:29.751> I<00:06:29.895> took<00:06:30.136> it<00:06:30.216> over<00:06:30.923> as<00:06:31.678> CEO<00:06:32.305> in<00:06:32.385> '95,<00:06:33.188> the<00:06:33.349> value<00:06:33.751> was<00:06:33.992> $200<00:06:34.634> million<00:06:36.000> and<00:06:36.080> we<00:06:36.225> sold<00:06:36.546> it<00:06:36.642> for<00:06:36.803> $2.3<00:06:37.446> billion.

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So,<00:06:39.598> wow,<00:06:39.662> it<00:06:39.759> was<00:06:40.401> the<00:06:40.578> progression.

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Uh,<00:06:42.424> over<00:06:42.665> time.

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So<00:06:44.654> I<00:06:44.670> like<00:06:44.911> those<00:06:45.152> numbers.

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So<00:06:47.141> yeah,<00:06:48.039> those<00:06:48.216> numbers<00:06:48.521> are<00:06:48.601> incredible.

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And<00:06:49.788> what's<00:06:50.205> fascinating<00:06:50.671> about<00:06:50.831> your<00:06:50.991> journey<00:06:51.409> is<00:06:51.553> you<00:06:51.729> played<00:06:52.034> like<00:06:52.211> so<00:06:52.451> many<00:06:52.692> different<00:06:53.077> roles<00:06:53.494> within<00:06:53.815> the<00:06:53.895> company<00:06:54.377> before,<00:06:55.083> uh,<00:06:55.323> becoming<00:06:55.821> CEO<00:06:56.607> and<00:06:56.783> then<00:06:57.008> chairman<00:06:57.345> of,<00:06:58.211> uh,<00:06:58.323> so<00:06:58.532> you<00:06:58.692> really<00:06:58.949> understood<00:06:59.286> the<00:06:59.430> business.

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I,<00:07:00.136> I<00:07:00.152> have<00:07:00.297> a<00:07:00.377> few<00:07:00.553> questions<00:07:00.938> around<00:07:01.500> like<00:07:01.692> Sonic<00:07:02.142> itself.

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How<00:07:03.201> did<00:07:03.425> you<00:07:04.099> think<00:07:04.580> about<00:07:05.110> competition?

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How<00:07:06.169> did<00:07:06.489> you<00:07:07.437> think<00:07:07.695> about,<00:07:08.889> you<00:07:08.921> know,<00:07:09.147> because<00:07:09.550> you<00:07:09.631> got<00:07:09.776> the<00:07:10.034> big<00:07:10.276> players<00:07:10.841> in<00:07:11.002> the—<00:07:11.244> I<00:07:11.551> get<00:07:12.374> you<00:07:12.761> in<00:07:12.858> like<00:07:13.019> the<00:07:13.180> fast<00:07:13.568> food<00:07:13.810> space,<00:07:15.919> which<00:07:16.161> is<00:07:16.258> like<00:07:16.661> the<00:07:16.742> McDonald's,<00:07:17.549> the<00:07:17.695> Burger<00:07:18.017> Kings,<00:07:18.357> the<00:07:18.502> Wendy's,<00:07:18.986> that<00:07:19.148> type<00:07:19.325> of<00:07:19.390> thing.

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And<00:07:20.455> Sonic<00:07:20.859> has<00:07:21.327> really<00:07:21.731> managed<00:07:22.215> to<00:07:22.312> differentiate<00:07:22.893> itself,<00:07:23.362> particularly<00:07:23.846> like<00:07:24.088> during<00:07:24.330> your<00:07:24.460> tenure.

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How<00:07:25.883> did<00:07:26.093> you<00:07:26.190> think<00:07:26.433> about<00:07:26.676> that?

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Well,<00:07:28.034> I<00:07:28.131> thought<00:07:28.374> about<00:07:28.600> it<00:07:28.778> less<00:07:29.086> from<00:07:29.183> the<00:07:29.264> standpoint<00:07:29.846> of<00:07:29.992> the<00:07:30.137> competition.

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I<00:07:31.836> thought<00:07:31.997> about<00:07:32.256> it<00:07:32.806> almost<00:07:33.227> at<00:07:33.372> all<00:07:33.930> times<00:07:34.588> on<00:07:34.764> how<00:07:34.925> could<00:07:35.086> we<00:07:35.230> strengthen<00:07:35.872> ourselves<00:07:37.879> and<00:07:38.056> really<00:07:38.297> came<00:07:38.474> to<00:07:38.618> think<00:07:38.714> about<00:07:38.955> it,<00:07:39.019> how<00:07:39.180> could<00:07:39.485> we<00:07:39.999> strengthen<00:07:41.091> our<00:07:41.267> brand?

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Because<00:07:43.740> when<00:07:43.836> we<00:07:43.997> bought<00:07:44.174> the<00:07:44.238> company<00:07:44.559> in<00:07:44.703> '80s,<00:07:45.362> in<00:07:45.442> the<00:07:45.603> '80s,<00:07:46.004> we<00:07:46.100> never<00:07:47.208> talked<00:07:47.465> about<00:07:48.637> the<00:07:48.734> brand.

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We<00:07:50.484> talked<00:07:50.677> about<00:07:50.901> growing<00:07:51.142> the<00:07:51.222> business.

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And<00:07:52.892> in<00:07:52.989> the<00:07:53.069> early<00:07:53.310> '90s,<00:07:53.711> after<00:07:53.872> we<00:07:53.920> went<00:07:54.097> public,<00:07:54.835> a<00:07:54.915> guy<00:07:54.996> named<00:07:55.221> Bob<00:07:55.461> Rosenberg<00:07:55.959> came<00:07:56.120> on<00:07:56.184> our<00:07:56.361> board<00:07:56.666> and<00:07:56.762> Bob<00:07:57.003> was<00:07:57.388> then<00:07:57.806> the<00:07:57.902> CEO<00:07:58.368> of<00:07:58.448> Dunkin'<00:07:58.769> Donuts.

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And<00:08:00.359> Bob<00:08:01.017> thought<00:08:01.162> about<00:08:01.338> brand<00:08:01.724> all<00:08:01.804> the<00:08:01.900> time.

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One<00:08:02.800> of<00:08:02.848> his<00:08:03.089> first<00:08:03.410> board<00:08:03.570> meetings,<00:08:04.470> let's<00:08:05.497> say<00:08:05.674> '92,<00:08:06.172> '93,<00:08:07.761> Bob<00:08:08.066> asked<00:08:08.388> at<00:08:08.484> the<00:08:08.564> board<00:08:08.805> meeting,<00:08:09.191> "How<00:08:09.287> do<00:08:09.351> you<00:08:09.447> think<00:08:09.624> about<00:08:09.913> your<00:08:10.009> brand?"<00:08:10.973> And,<00:08:11.278> you<00:08:11.390> know,<00:08:11.455> my<00:08:11.615> reaction<00:08:12.161> was,<00:08:12.643> "What's<00:08:12.836> a<00:08:12.900> brand?"<00:08:13.542> You<00:08:13.622> know,<00:08:15.710> so<00:08:15.871> Bob<00:08:16.192> really<00:08:16.497> helped<00:08:16.690> us<00:08:16.818> start<00:08:17.059> thinking<00:08:17.412> about,<00:08:17.798> you<00:08:17.830> know,<00:08:18.119> any<00:08:18.360> aspect<00:08:18.777> of<00:08:18.825> the<00:08:18.922> business<00:08:19.243> you're<00:08:19.403> thinking<00:08:19.580> about,<00:08:19.805> the<00:08:19.885> physicality<00:08:20.768> of<00:08:20.848> the<00:08:20.929> drive-in,<00:08:22.197> the<00:08:22.278> way<00:08:22.454> your<00:08:22.615> television<00:08:23.241> creative<00:08:23.803> looks,<00:08:24.221> the<00:08:24.365> products<00:08:24.847> you're<00:08:24.943> promoting,<00:08:25.569> the<00:08:25.650> way<00:08:25.746> your<00:08:25.923> employees<00:08:26.629> dress.

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You<00:08:27.672> know,<00:08:27.897> all<00:08:28.057> these<00:08:28.314> things<00:08:29.115> play<00:08:29.436> into<00:08:30.237> building<00:08:30.702> an<00:08:30.798> image<00:08:32.001> in<00:08:32.081> a<00:08:32.161> consumer's<00:08:33.043> brain<00:08:34.966> that<00:08:35.271> in<00:08:35.447> essence<00:08:35.912> is<00:08:36.489> your<00:08:36.794> brand,<00:08:37.451> you<00:08:37.531> know,<00:08:37.692> with<00:08:37.852> the<00:08:37.932> consumer.

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And<00:08:39.840> so,<00:08:40.096> boy,<00:08:40.337> that<00:08:40.561> caused<00:08:40.882> us<00:08:41.042> to<00:08:41.138> start<00:08:41.619> thinking<00:08:42.020> and<00:08:42.100> planning<00:08:42.645> differently<00:08:43.848> and<00:08:45.066> very<00:08:46.332> interestingly<00:08:46.926> so.

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I<00:08:47.326> mean,<00:08:47.551> it<00:08:47.631> really<00:08:47.871> was<00:08:48.032> transformative<00:08:48.833> for<00:08:48.977> the<00:08:49.074> business.

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So<00:08:51.222> I<00:08:51.639> thought<00:08:52.104> not<00:08:52.504> about<00:08:53.162> Uh-oh,<00:08:53.483> McDonald's.

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Uh-oh,<00:08:54.671> anybody.

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We<00:08:56.838> always<00:08:57.336> thought<00:08:57.496> about<00:08:58.139> how<00:08:58.299> can<00:08:58.460> we<00:08:58.620> grow<00:08:58.877> Sonic?

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How<00:08:59.664> can<00:08:59.808> we<00:08:59.905> strengthen<00:09:00.531> the<00:09:00.611> brand,<00:09:01.430> grow<00:09:01.671> the<00:09:01.831> business,<00:09:03.019> make<00:09:03.212> our<00:09:03.902> operators,<00:09:04.641> which<00:09:04.802> were<00:09:04.962> primarily,<00:09:05.363> it<00:09:05.412> was<00:09:05.524> 95%<00:09:06.102> franchise<00:09:06.873> chain.

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How<00:09:08.045> can<00:09:08.237> we<00:09:08.414> make<00:09:08.591> our<00:09:08.799> operators<00:09:09.361> more<00:09:09.457> successful?

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And<00:09:10.822> in<00:09:10.902> the<00:09:10.983> process,<00:09:12.010> want<00:09:12.171> them<00:09:12.331> to<00:09:12.428> grow<00:09:12.733> with<00:09:12.909> us<00:09:13.391> and<00:09:13.937> make<00:09:14.113> the<00:09:14.258> brand<00:09:14.595> big,<00:09:14.916> bigger,<00:09:15.253> stronger,<00:09:15.976> et<00:09:16.120> cetera.

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So<00:09:17.180> that<00:09:17.324> was<00:09:17.549> the,<00:09:18.288> that<00:09:18.513> really<00:09:18.689> was<00:09:18.994> the,<00:09:20.732> mentality,<00:09:21.218> you<00:09:21.251> know.

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And<00:09:21.705> I<00:09:21.850> don't<00:09:22.094> mean<00:09:22.191> by<00:09:22.353> that<00:09:22.661> you<00:09:22.823> could<00:09:23.310> ignore<00:09:23.634> your<00:09:23.813> competitors<00:09:24.283> because<00:09:24.607> you<00:09:24.704> couldn't.

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Right.

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There<00:09:27.121> are<00:09:27.218> a<00:09:27.234> lot<00:09:27.298> of<00:09:27.459> ways<00:09:27.846> we<00:09:27.927> had<00:09:28.104> to<00:09:28.185> respond<00:09:28.652> to<00:09:28.749> competitors,<00:09:29.877> but<00:09:30.264> our<00:09:30.603> strategy<00:09:31.392> for<00:09:31.554> growing<00:09:31.812> the<00:09:31.957> business<00:09:32.440> was<00:09:33.665> focus<00:09:34.133> within<00:09:34.713> and<00:09:34.874> become<00:09:35.276> more<00:09:37.448> intense,<00:09:38.156> you<00:09:38.236> know,<00:09:38.639> stronger<00:09:39.138> about<00:09:39.846> our<00:09:40.409> brand.

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So,<00:09:42.867> what<00:09:43.030> are<00:09:43.128> some<00:09:43.373> of<00:09:43.438> the<00:09:43.520> things<00:09:43.830> you<00:09:43.928> did<00:09:45.315> after<00:09:45.544> that<00:09:45.723> conversation<00:09:46.376> to<00:09:46.523> strengthen<00:09:46.948> the<00:09:47.095> brand<00:09:47.617> or<00:09:47.748> some<00:09:47.944> of<00:09:48.025> the<00:09:48.676> things<00:09:48.917> you<00:09:49.078> implemented?

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Well,<00:09:50.394> I'm<00:09:50.539> glad<00:09:50.876> you<00:09:51.021> asked<00:09:51.342> that.

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So,<00:09:52.835> you<00:09:53.028> know,<00:09:53.590> one<00:09:53.734> of<00:09:53.815> the<00:09:53.911> first<00:09:54.232> things<00:09:54.473> that<00:09:54.617> happened<00:09:55.035> after<00:09:55.195> I<00:09:55.356> became<00:09:55.677> CEO—<00:09:56.785> before<00:09:57.122> I<00:09:57.202> became<00:09:58.086> CEO,<00:09:59.113> I<00:09:59.210> was<00:09:59.547> COO—<00:10:00.639> one<00:10:00.783> of<00:10:00.815> the<00:10:01.040> things<00:10:01.698> that<00:10:02.260> we<00:10:02.565> backed<00:10:02.967> into,<00:10:04.091> I<00:10:04.107> didn't<00:10:04.348> plan<00:10:04.829> this.

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The<00:10:06.114> franchisees<00:10:06.869> saw<00:10:07.703> in<00:10:08.282> mid-'90s<00:10:09.405> that<00:10:10.369> their<00:10:10.594> license<00:10:11.027> agreement,<00:10:11.316> many<00:10:11.493> of<00:10:11.573> their<00:10:11.718> license<00:10:12.071> agreements<00:10:12.440> were<00:10:12.537> coming<00:10:12.777> to<00:10:12.938> an<00:10:13.179> end.

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And<00:10:14.447> a<00:10:15.170> lot<00:10:15.347> of<00:10:15.893> our<00:10:16.150> franchisees<00:10:16.793> were,<00:10:17.018> let's<00:10:17.194> just<00:10:17.467> say,<00:10:17.837> in<00:10:17.917> their<00:10:18.013> 50s,<00:10:18.560> big<00:10:18.704> slug<00:10:19.041> of<00:10:19.122> them<00:10:19.266> that<00:10:19.363> had<00:10:19.523> come<00:10:19.748> in<00:10:20.471> in<00:10:20.567> their<00:10:20.808> 30s<00:10:21.290> in<00:10:21.371> the<00:10:21.451> 1970s.

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Okay,<00:10:23.539> now<00:10:23.700> they're<00:10:23.860> in<00:10:23.941> their<00:10:24.101> 50s.

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They<00:10:25.290> see<00:10:25.467> license<00:10:26.109> coming<00:10:26.976> to<00:10:27.137> an<00:10:27.217> end.

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They<00:10:27.474> think,<00:10:27.780> oh,<00:10:28.422> we<00:10:28.454> don't<00:10:28.663> want,<00:10:28.904> you<00:10:28.936> know,<00:10:29.563> we<00:10:29.707> got<00:10:29.948> 15,<00:10:30.350> 20-year<00:10:30.735> mortgages.

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We<00:10:31.410> can't<00:10:31.876> have<00:10:31.972> our<00:10:32.117> license<00:10:32.502> agreements<00:10:32.920> ending,<00:10:33.337> you<00:10:33.418> know.

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So<00:10:34.606> they<00:10:34.767> wanted<00:10:34.960> to<00:10:35.040> negotiate<00:10:35.602> a<00:10:35.650> new<00:10:35.827> license<00:10:36.309> agreement.

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And<00:10:37.915> we<00:10:38.060> had<00:10:38.220> already<00:10:38.558> kind<00:10:38.734> of<00:10:39.345> built<00:10:39.746> the<00:10:40.003> business<00:10:40.421> and<00:10:40.550> built<00:10:40.726> their<00:10:40.871> profitability<00:10:41.529> nicely.

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So<00:10:42.493> in<00:10:42.573> '93,<00:10:43.054> '94,<00:10:44.401> so<00:10:44.642> I<00:10:44.658> had<00:10:44.802> become<00:10:45.139> COO.

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I<00:10:46.646> was<00:10:46.807> not<00:10:46.983> yet<00:10:47.159> CEO.

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'93,<00:10:47.865> '94,<00:10:48.410> renegotiated<00:10:49.148> new<00:10:49.308> license<00:10:49.613> agreement.

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And<00:10:51.473> to<00:10:51.618> be<00:10:52.740> transparent<00:10:53.318> with<00:10:53.542> you,<00:10:54.424> we<00:10:54.585> took<00:10:55.884> like<00:10:56.204> Wendy's<00:10:57.568> license<00:10:58.049> agreement<00:10:59.075> and<00:10:59.252> just<00:10:59.412> said,<00:11:00.134> what<00:11:00.278> do<00:11:00.374> they<00:11:00.599> do?

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Because<00:11:01.160> I<00:11:01.256> kind<00:11:01.417> of<00:11:01.513> admired<00:11:02.202> Wendy's,<00:11:02.764> you<00:11:03.902> know?

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And<00:11:04.384> we<00:11:04.464> said,<00:11:04.688> what<00:11:05.201> do<00:11:05.426> they<00:11:05.586> do<00:11:05.811> different<00:11:06.132> from<00:11:06.292> us?

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And<00:11:06.549> so<00:11:06.773> we<00:11:06.869> went<00:11:07.094> through<00:11:07.976> and,<00:11:08.153> you<00:11:08.297> know,<00:11:08.474> trade<00:11:08.795> dress<00:11:09.196> requirements,<00:11:10.786> marketing<00:11:11.300> requirements,<00:11:12.087> just,<00:11:12.649> you<00:11:12.713> know,<00:11:13.114> kind<00:11:13.307> of<00:11:13.468> went<00:11:13.837> through<00:11:15.122> and<00:11:15.298> used<00:11:15.619> it<00:11:15.764> as<00:11:15.941> a<00:11:15.957> model.

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And<00:11:17.867> what<00:11:18.028> that<00:11:18.189> said<00:11:18.413> to<00:11:18.510> me<00:11:18.815> as<00:11:18.975> I<00:11:19.072> was<00:11:19.377> COO<00:11:20.035> was,<00:11:21.079> look<00:11:21.304> at<00:11:22.524> what<00:11:23.006> the<00:11:23.102> franchisees<00:11:23.889> and<00:11:24.033> the<00:11:24.114> franchisor<00:11:24.676> had<00:11:24.772> negotiated<00:11:25.479> actually<00:11:25.800> before,<00:11:26.217> the<00:11:26.362> year<00:11:26.538> before<00:11:26.843> I<00:11:26.940> even<00:11:27.181> joined<00:11:27.422> the<00:11:27.566> company.

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Look<00:11:28.722> at<00:11:28.802> the<00:11:29.011> gaps<00:11:30.071> between<00:11:30.874> what<00:11:31.034> Wendy's<00:11:31.516> was<00:11:31.677> trying<00:11:31.998> to<00:11:32.239> do<00:11:32.801> and<00:11:32.945> what<00:11:33.106> our<00:11:33.443> power<00:11:34.069> permitted<00:11:34.551> us<00:11:34.728> or<00:11:34.888> didn't<00:11:35.129> permit<00:11:35.466> us.

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And<00:11:36.494> so<00:11:36.670> it<00:11:36.718> was<00:11:36.879> a<00:11:36.975> real<00:11:37.296> learning<00:11:37.761> experience.

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Anyway,<00:11:39.061> when<00:11:39.286> I<00:11:39.382> became<00:11:41.132> CEO,<00:11:42.512> we<00:11:42.592> were<00:11:42.753> just<00:11:42.993> initiating<00:11:43.555> a<00:11:43.635> process<00:11:44.277> to<00:11:44.422> kind<00:11:44.663> of<00:11:45.160> rebuild<00:11:45.802> the<00:11:45.946> brand.

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And<00:11:46.701> a<00:11:46.765> lot<00:11:47.006> of<00:11:47.166> it<00:11:47.246> was<00:11:47.423> about<00:11:47.728> menu,<00:11:48.225> a<00:11:48.274> lot<00:11:48.450> was<00:11:48.514> about<00:11:48.771> physicality,<00:11:49.333> a<00:11:49.477> lot<00:11:49.654> was<00:11:49.895> about<00:11:50.135> the<00:11:50.199> employee<00:11:50.601> uniforms.

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We<00:11:51.564> didn't<00:11:51.772> know<00:11:51.901> where<00:11:52.061> it<00:11:52.206> would<00:11:52.382> go,<00:11:53.249> but<00:11:53.329> we<00:11:53.490> just<00:11:53.730> started<00:11:54.051> this<00:11:54.292> process<00:11:55.014> '95<00:11:55.608> or<00:11:55.672> so.

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We<00:11:56.459> called<00:11:56.731> it<00:11:56.860> Sonic<00:11:57.357> 2000.

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You<00:11:58.657> know,<00:11:59.219> everybody<00:11:59.492> was<00:11:59.684> using<00:12:00.070> that,<00:12:00.230> you<00:12:00.262> know.

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And<00:12:02.959> but<00:12:03.280> here's<00:12:03.938> what<00:12:04.179> happened<00:12:04.805> as<00:12:04.966> part<00:12:05.127> of<00:12:05.207> that<00:12:05.448> process<00:12:05.945> when<00:12:06.026> we<00:12:06.106> were<00:12:06.186> working<00:12:06.443> on<00:12:06.524> the<00:12:06.732> menu.

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And<00:12:07.776> I<00:12:07.792> talk<00:12:08.017> about<00:12:08.258> this<00:12:08.450> in<00:12:08.579> my<00:12:08.820> book,<00:12:09.237> okay?

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'Cause<00:12:10.907> it<00:12:11.003> was,<00:12:11.646> I<00:12:11.726> wouldn't<00:12:11.951> call<00:12:12.063> it<00:12:12.143> serendipitous,<00:12:13.075> but<00:12:14.536> it<00:12:14.600> was,<00:12:14.841> you<00:12:15.001> don't<00:12:15.258> have<00:12:15.644> to<00:12:15.804> come<00:12:15.981> up<00:12:16.141> with<00:12:16.382> all<00:12:16.543> the<00:12:16.703> ideas.

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I<00:12:17.426> mean,<00:12:17.587> somebody<00:12:17.811> else<00:12:18.052> got<00:12:18.213> a<00:12:18.229> good<00:12:18.454> idea<00:12:19.337> and<00:12:19.417> it<00:12:19.513> works<00:12:19.818> for<00:12:19.915> you,<00:12:20.236> grab<00:12:20.702> it.

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Don't,<00:12:21.601> don't.

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This<00:12:22.965> whole<00:12:23.126> thing<00:12:23.367> about<00:12:23.688> not<00:12:23.929> invented<00:12:24.395> here<00:12:24.587> is<00:12:24.892> deadly,<00:12:25.679> you<00:12:25.711> know?

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And<00:12:26.659> so,<00:12:27.526> A<00:12:27.542> franchisee<00:12:28.184> came<00:12:28.489> to<00:12:28.585> me<00:12:29.163> in<00:12:29.308> '94<00:12:30.913> while<00:12:31.090> I<00:12:31.154> was<00:12:31.475> still<00:12:32.599> COO<00:12:33.386> and<00:12:33.787> he<00:12:33.884> said,<00:12:34.670> you<00:12:34.751> gotta<00:12:34.927> help<00:12:35.088> me.

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This<00:12:35.585> is<00:12:35.634> a<00:12:35.650> franchisee<00:12:36.276> about<00:12:36.549> a<00:12:36.597> 30-store<00:12:36.998> operator.

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You<00:12:37.576> gotta<00:12:37.817> help<00:12:38.042> me.

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So<00:12:39.246> why,<00:12:39.487> what's<00:12:39.648> the<00:12:39.744> problem?

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He<00:12:40.242> said,<00:12:40.466> you<00:12:40.611> guys<00:12:40.948> are<00:12:41.012> gonna<00:12:41.173> hurt<00:12:41.414> me.

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What,<00:12:41.831> tell<00:12:41.992> me<00:12:42.152> what<00:12:42.313> do<00:12:42.618> you<00:12:42.714> mean?

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He<00:12:43.774> said,<00:12:43.983> well,<00:12:44.159> I'm<00:12:44.304> out<00:12:44.464> here<00:12:44.561> in<00:12:44.625> the<00:12:44.705> Carolinas<00:12:46.086> and<00:12:46.182> I'm<00:12:46.327> doing<00:12:46.648> better<00:12:46.969> than<00:12:47.129> the<00:12:47.274> average<00:12:47.515> store,<00:12:48.655> but<00:12:49.457> your<00:12:50.324> two<00:12:50.517> senior<00:12:50.967> officers<00:12:51.384> had<00:12:51.545> come<00:12:51.705> to<00:12:51.850> him<00:12:52.669> and<00:12:52.813> said<00:12:53.054> to<00:12:53.134> him,<00:12:54.320> You're<00:12:54.823> promoting<00:12:55.391> ice<00:12:55.635> cream<00:12:55.894> and<00:12:55.959> that's<00:12:56.203> not<00:12:56.365> our<00:12:56.544> deal.

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That's<00:12:57.193> Dairy<00:12:57.518> Queen.

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You<00:12:58.574> shouldn't<00:12:58.817> be<00:12:58.898> trying<00:12:59.142> to<00:12:59.304> mimic<00:12:59.629> Dairy<00:12:59.954> Queen.

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And<00:13:03.528> I<00:13:03.625> said,<00:13:03.867> well,<00:13:04.110> what<00:13:04.288> is<00:13:04.449> your<00:13:04.595> deal?

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And<00:13:04.902> he<00:13:04.999> kind<00:13:05.306> of<00:13:05.468> described<00:13:05.727> it<00:13:05.808> to<00:13:05.969> me.

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And<00:13:07.085> so<00:13:07.587> here's<00:13:07.894> my<00:13:08.072> big<00:13:08.233> question,<00:13:08.702> trying<00:13:08.880> to<00:13:08.945> get<00:13:09.058> a<00:13:09.123> handle<00:13:09.365> on<00:13:09.511> what<00:13:09.608> are<00:13:09.673> we<00:13:09.834> talking<00:13:10.158> about<00:13:10.416> here.

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I<00:13:11.063> said,<00:13:11.290> well,<00:13:11.451> what<00:13:11.548> does<00:13:11.726> your<00:13:11.840> top<00:13:12.115> store<00:13:12.682> do<00:13:13.492> in<00:13:13.637> terms<00:13:13.978> of<00:13:14.221> ice<00:13:14.447> cream<00:13:14.626> promotion?

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He<00:13:15.354> said,<00:13:15.581> you<00:13:15.614> mean<00:13:15.776> sales?

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I<00:13:16.650> said,<00:13:16.877> yeah,<00:13:17.201> what<00:13:17.314> are<00:13:17.363> your<00:13:17.460> sales<00:13:17.881> at<00:13:18.011> your<00:13:18.173> top<00:13:18.756> drive-in<00:13:19.469> ice<00:13:19.647> cream-wise?

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He<00:13:20.574> said,<00:13:21.057> 30%.

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And<00:13:23.456> I<00:13:23.874> just,<00:13:24.341> I<00:13:24.422> just,<00:13:25.323> I<00:13:25.549> almost<00:13:26.000> fell<00:13:26.193> off<00:13:26.370> my<00:13:26.595> chair.

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I<00:13:27.835> mean,<00:13:28.689> I<00:13:28.850> couldn't<00:13:29.333> believe<00:13:29.832> what<00:13:29.977> he<00:13:30.089> said.

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And<00:13:31.828> I<00:13:31.925> said,<00:13:32.553> don't<00:13:32.955> change<00:13:33.696> anything.

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Don't<00:13:35.467> listen<00:13:35.870> to<00:13:36.031> those<00:13:36.336> officers.

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I'm<00:13:37.270> going<00:13:37.399> to<00:13:37.544> send<00:13:37.882> a<00:13:37.947> marketing<00:13:38.430> person<00:13:38.752> out<00:13:38.929> there<00:13:39.154> and<00:13:39.251> you<00:13:39.380> show<00:13:39.749> them<00:13:40.000> what<00:13:40.235> you're<00:13:40.420> doing.

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That<00:13:42.458> was<00:13:42.636> '94,<00:13:43.154> the<00:13:43.300> summer<00:13:43.543> of<00:13:43.607> '94.

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And<00:13:44.239> we<00:13:44.352> spent,<00:13:45.372> you<00:13:45.470> know,<00:13:45.632> I<00:13:45.713> don't<00:13:45.874> know<00:13:45.955> what,<00:13:46.263> 6<00:13:46.538> months<00:13:46.927> kind<00:13:47.170> of<00:13:48.775> really<00:13:49.256> refining<00:13:49.882> what<00:13:49.994> he<00:13:50.139> was<00:13:50.299> doing,<00:13:50.620> but<00:13:50.861> folded<00:13:51.326> into<00:13:51.663> our<00:13:52.064> menu<00:13:52.385> planning<00:13:52.866> processes,<00:13:53.733> you<00:13:53.765> know.

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And<00:13:54.615> at<00:13:54.711> that<00:13:54.936> time,<00:13:55.177> when<00:13:55.273> you<00:13:55.417> pulled<00:13:55.658> into<00:13:55.995> the<00:13:56.252> stall<00:13:56.396> at<00:13:56.428> Sonic<00:13:56.557> Drive-In,<00:13:57.343> the<00:13:57.439> menu<00:13:57.904> you<00:13:58.001> would<00:13:58.161> see<00:13:58.402> on<00:13:58.546> the<00:13:58.723> driver's<00:13:59.268> side<00:13:59.765> and<00:13:59.862> the<00:13:59.990> passenger<00:14:00.487> side,<00:14:00.888> those<00:14:01.113> menus<00:14:01.450> were<00:14:01.594> identical.

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So<00:14:04.081> in<00:14:04.178> '95,<00:14:04.739> we've<00:14:04.948> been<00:14:05.028> again<00:14:05.445> testing<00:14:05.878> some<00:14:06.103> stuff<00:14:06.568> where,<00:14:07.531> you<00:14:07.723> know,<00:14:08.750> okay,<00:14:09.135> food<00:14:09.312> menu<00:14:09.617> on<00:14:09.713> the<00:14:09.793> left,<00:14:10.114> but<00:14:10.274> then<00:14:10.836> ice<00:14:11.141> cream<00:14:11.494> and<00:14:11.783> drinks<00:14:12.200> and<00:14:12.296> so<00:14:12.521> on,<00:14:12.745> different,<00:14:13.243> bigger<00:14:13.708> on<00:14:13.868> the<00:14:13.948> right,<00:14:14.285> more<00:14:14.446> pictures,<00:14:15.248> color,<00:14:15.970> you<00:14:16.066> know.

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And<00:14:17.560> it<00:14:17.721> was<00:14:17.881> all<00:14:18.058> working<00:14:18.460> real<00:14:18.701> well,<00:14:20.147> these<00:14:20.388> tests<00:14:20.709> were.

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We<00:14:21.834> tested<00:14:22.220> them<00:14:22.477> in<00:14:22.638> the<00:14:22.782> winter<00:14:23.441> in<00:14:23.521> New<00:14:23.746> Orleans<00:14:24.100> and<00:14:24.196> Houston<00:14:24.967> and<00:14:25.192> sold<00:14:25.514> all<00:14:25.546> kinds<00:14:25.931> of<00:14:26.076> ice<00:14:26.317> cream.

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And<00:14:27.121> we<00:14:27.297> thought,<00:14:28.020> if<00:14:28.165> we<00:14:28.261> can<00:14:28.502> sell<00:14:28.808> ice<00:14:28.968> cream<00:14:29.209> in<00:14:29.306> the<00:14:29.386> winter<00:14:29.788> in<00:14:29.868> Houston,<00:14:31.073> we<00:14:31.154> can<00:14:31.250> sell<00:14:31.475> ice<00:14:31.700> cream<00:14:32.359> anywhere<00:14:32.760> in<00:14:32.905> the<00:14:32.937> summertime,<00:14:33.789> you<00:14:33.885> know.

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So<00:14:35.733> in<00:14:35.878> the<00:14:35.958> spring<00:14:36.311> of<00:14:36.376> '96,<00:14:37.179> we<00:14:37.340> rolled<00:14:37.645> out<00:14:38.690> what<00:14:38.866> we<00:14:39.172> called,<00:14:40.071> and<00:14:40.152> they<00:14:40.248> still<00:14:40.553> call,<00:14:41.116> Frozen<00:14:41.534> Fountain<00:14:41.903> Favorites.

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Zionix<00:14:42.963> Frozen<00:14:43.765> Fountain<00:14:44.070> Favorites.

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And<00:14:45.996> we<00:14:46.332> put<00:14:46.493> the<00:14:46.573> menus<00:14:46.958> up<00:14:47.135> across<00:14:47.375> system<00:14:47.793> in<00:14:47.873> April.

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I'd<00:14:49.381> been<00:14:49.542> CEO<00:14:50.087> literally<00:14:50.584> a<00:14:50.729> year<00:14:50.905> at<00:14:51.050> that<00:14:51.226> time.

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Sales<00:14:52.895> were<00:14:53.136> okay.

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Sales<00:14:54.098> were<00:14:54.259> okay.

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No<00:14:55.318> big<00:14:55.478> deal.

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And<00:14:56.746> in<00:14:56.922> May,<00:14:57.404> we<00:14:57.548> came<00:14:57.789> out<00:14:57.965> with<00:14:58.912> media<00:14:59.249> behind<00:14:59.666> it,<00:15:00.677> behind<00:15:00.934> the<00:15:01.014> Frozen<00:15:01.495> Fountain<00:15:01.800> Favorites.

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And<00:15:03.244> in<00:15:03.341> the<00:15:03.421> month<00:15:03.886> of<00:15:04.047> May,<00:15:04.881> I<00:15:04.945> mean,<00:15:05.089> I<00:15:05.186> can<00:15:05.346> tell<00:15:05.587> you<00:15:05.811> May<00:15:06.132> 1996,<00:15:07.352> in<00:15:07.416> the<00:15:07.512> month<00:15:07.753> of<00:15:07.833> May,<00:15:08.539> comps<00:15:09.662> were<00:15:09.839> 12%.

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Sales<00:15:11.639> at<00:15:11.801> the<00:15:12.027> average<00:15:12.351> store<00:15:12.771> were<00:15:12.917> up<00:15:13.095> 12%.

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And<00:15:15.359> of<00:15:15.763> course<00:15:16.006> you<00:15:16.152> knew—.

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Unbelievable.

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You<00:15:17.235> knew<00:15:18.254> we<00:15:18.351> got<00:15:18.529> something<00:15:18.837> going<00:15:19.144> on<00:15:19.290> here,<00:15:19.726> you<00:15:19.824> know.

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What<00:15:20.600> I<00:15:20.697> didn't<00:15:21.102> really<00:15:21.410> realize<00:15:21.895> was<00:15:22.640> it<00:15:22.704> really<00:15:22.882> changed<00:15:23.287> the<00:15:23.449> way<00:15:23.611> people<00:15:23.853> could<00:15:24.080> use<00:15:24.404> our<00:15:25.213> brand,<00:15:25.634> use<00:15:25.812> our<00:15:26.022> business.

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'Cause<00:15:27.023> they'd<00:15:27.185> been<00:15:27.347> using<00:15:27.671> it<00:15:27.752> primarily<00:15:28.141> at<00:15:28.222> lunch<00:15:28.481> and<00:15:28.562> dinner.

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And<00:15:30.102> what<00:15:30.328> the<00:15:30.426> drinks<00:15:30.750> and<00:15:30.896> ice<00:15:31.058> cream<00:15:31.236> program<00:15:31.641> gave<00:15:31.868> them<00:15:32.208> was<00:15:32.451> a<00:15:32.532> reason<00:15:32.840> to<00:15:32.921> come<00:15:33.116> in<00:15:33.261> more<00:15:33.585> in<00:15:33.683> the<00:15:33.893> afternoon<00:15:34.801> and<00:15:34.947> in<00:15:35.044> the<00:15:35.352> evening.

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So<00:15:36.910> now<00:15:37.134> suddenly<00:15:37.777> we<00:15:37.921> were<00:15:38.082> leveraging<00:15:38.499> our<00:15:38.644> labor<00:15:39.125> better<00:15:40.587> and<00:15:40.683> suddenly<00:15:41.068> we're<00:15:42.353> leveraging<00:15:42.835> this<00:15:43.075> fixed<00:15:43.380> asset,<00:15:43.798> the<00:15:43.959> building,<00:15:44.826> better<00:15:45.307> and<00:15:45.404> our<00:15:45.500> equipment<00:15:46.126> and<00:15:46.271> everything<00:15:46.592> else.

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But<00:15:47.908> the<00:15:48.053> bigger<00:15:48.438> thing<00:15:48.679> that<00:15:48.840> happened<00:15:49.177> was<00:15:49.418> the<00:15:49.498> first<00:15:49.899> full<00:15:50.205> 12<00:15:50.702> months,<00:15:51.505> our<00:15:51.666> fiscal<00:15:51.987> year<00:15:52.854> in<00:15:52.950> which<00:15:53.271> that—<00:15:54.540> well,<00:15:54.700> I<00:15:54.716> guess<00:15:54.973> it<00:15:55.038> was<00:15:55.262> really<00:15:55.840> calendar<00:15:56.226> year<00:15:56.402> '96.

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So<00:15:57.510> calendar<00:15:57.944> '97<00:15:58.891> for<00:15:59.036> the<00:15:59.277> average<00:15:59.758> operator<00:16:00.176> across<00:16:00.561> the<00:16:00.641> Sonic<00:16:00.995> system,<00:16:02.060> profits,<00:16:03.056> not<00:16:03.252> sales,<00:16:04.199> profits<00:16:04.787> at<00:16:04.869> the<00:16:05.098> average<00:16:05.424> store<00:16:06.666> went<00:16:06.894> up<00:16:07.450> by<00:16:10.374> 40%.

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And<00:16:13.941> so<00:16:13.989> the<00:16:14.230> average<00:16:14.616> operator,<00:16:15.339> it<00:16:15.435> was<00:16:15.516> just<00:16:15.757> like<00:16:15.982> suddenly<00:16:16.319> just<00:16:16.640> money<00:16:17.027> falling<00:16:17.528> on<00:16:17.560> them.

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And<00:16:19.080> so<00:16:19.306> some<00:16:19.532> of<00:16:19.565> the<00:16:19.629> groaning<00:16:20.276> and<00:16:20.438> so<00:16:20.599> on<00:16:20.680> that<00:16:20.842> occurred<00:16:21.246> because<00:16:21.537> of<00:16:21.747> this<00:16:21.877> license<00:16:22.297> renewal,<00:16:23.089> all<00:16:23.186> that<00:16:23.412> groaning<00:16:23.736> stopped,<00:16:24.560> you<00:16:24.690> know.

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And<00:16:27.312> what<00:16:27.538> did<00:16:27.716> happen<00:16:29.163> We<00:16:29.484> were<00:16:29.788> part<00:16:29.948> of<00:16:29.981> that<00:16:30.205> going<00:16:30.365> through<00:16:30.526> this<00:16:30.686> brand<00:16:30.990> renewal<00:16:31.311> process.

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Menus,<00:16:33.732> physicality,<00:16:35.399> products,<00:16:35.816> consistency<00:16:36.762> and<00:16:36.922> quality<00:16:37.243> of<00:16:37.323> products<00:16:37.643> coming<00:16:37.788> in<00:16:37.820> the<00:16:37.900> back<00:16:38.140> door,<00:16:38.621> uniforms,<00:16:39.439> and<00:16:39.968> so<00:16:40.208> on.

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And<00:16:41.587> what<00:16:41.972> started<00:16:42.292> happening<00:16:42.789> then,<00:16:43.030> this<00:16:43.190> was<00:16:43.350> calendar<00:16:43.751> '97,<00:16:45.098> these<00:16:45.274> guys<00:16:45.434> were<00:16:45.515> making<00:16:45.755> so<00:16:45.899> much<00:16:46.140> more<00:16:46.236> money<00:16:46.701> that<00:16:46.781> when<00:16:46.957> we<00:16:47.054> said,<00:16:47.358> this<00:16:47.583> is<00:16:47.679> what<00:16:47.919> we<00:16:47.983> want<00:16:48.320> the<00:16:48.464> retrofit<00:16:48.961> to<00:16:49.105> look<00:16:49.282> like,<00:16:50.725> they<00:16:50.965> just<00:16:51.141> seized<00:16:51.622> on<00:16:51.847> it<00:16:52.568> because<00:16:52.953> their,<00:16:53.770> their<00:16:54.396> average<00:16:54.557> store<00:16:54.815> profitability,<00:16:56.428> you<00:16:56.589> know,<00:16:56.670> gave<00:16:56.992> them<00:16:57.073> tons<00:16:57.411> of<00:16:57.476> cash.

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I<00:16:57.976> mean,<00:16:58.121> the<00:16:58.266> timing<00:16:58.685> was<00:16:58.991> perfect.

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And<00:17:00.480> so<00:17:00.738> here,<00:17:01.141> this<00:17:02.044> kind<00:17:02.269> of,<00:17:02.833> you<00:17:02.882> know,<00:17:03.075> Ford<00:17:03.333> now<00:17:03.575> 40-year-old<00:17:04.284> brand,<00:17:05.429> and<00:17:05.670> much<00:17:05.928> of<00:17:05.977> the<00:17:06.073> system<00:17:06.380> was<00:17:06.476> 20<00:17:06.766> years<00:17:07.024> old,<00:17:07.282> never<00:17:07.605> really<00:17:07.911> had<00:17:08.088> a<00:17:08.491> lot<00:17:08.668> of<00:17:08.733> deferred<00:17:09.055> maintenance.

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Suddenly<00:17:12.441> in<00:17:12.940> '98,<00:17:14.371> '99,<00:17:14.789> 2000,<00:17:16.220> the<00:17:16.462> entire<00:17:16.799> system<00:17:17.282> got<00:17:17.523> retrofitted<00:17:18.166> with<00:17:18.311> this<00:17:18.488> new<00:17:18.713> look.

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So,<00:17:20.647> so<00:17:20.823> what<00:17:20.967> do<00:17:20.999> you<00:17:21.208> have?

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You<00:17:22.026> have<00:17:22.266> better<00:17:22.667> and<00:17:22.764> more<00:17:22.972> consistent<00:17:23.469> products<00:17:23.870> coming<00:17:24.111> in<00:17:24.191> the<00:17:24.271> back<00:17:24.576> door<00:17:24.833> because<00:17:25.218> we<00:17:25.539> required<00:17:25.956> that<00:17:26.180> in<00:17:26.260> the<00:17:26.341> license<00:17:26.741> agreement.

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But<00:17:27.479> in<00:17:27.576> terms<00:17:27.816> of<00:17:27.944> purchasing,<00:17:28.698> I<00:17:28.827> also<00:17:29.067> brought<00:17:29.308> in<00:17:29.468> a<00:17:29.548> new<00:17:29.725> talent<00:17:30.527> to<00:17:30.751> oversee<00:17:31.152> that<00:17:31.329> area.

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So<00:17:33.093> the<00:17:33.237> purchasing<00:17:34.136> really<00:17:34.376> took<00:17:34.537> a<00:17:34.617> big<00:17:34.841> step<00:17:35.323> up<00:17:35.499> in<00:17:35.579> terms<00:17:35.900> of<00:17:35.980> quality,<00:17:37.103> but<00:17:37.247> also<00:17:37.568> consistency.

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And<00:17:40.150> then<00:17:40.327> the<00:17:40.471> promotional<00:17:40.936> activity,<00:17:41.594> drinks<00:17:41.915> and<00:17:42.059> ice<00:17:42.300> cream.

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So<00:17:42.717> people<00:17:43.022> using<00:17:43.294> us<00:17:43.503> for<00:17:43.679> day<00:17:43.920> parts,<00:17:44.545> lunch,<00:17:45.187> afternoon,<00:17:45.604> dinner,<00:17:45.909> and<00:17:46.149> evening,<00:17:46.566> lunch,<00:17:46.951> afternoon,<00:17:47.432> dinner,<00:17:47.609> and<00:17:47.833> evening.

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And<00:17:50.020> so<00:17:50.262> profits<00:17:50.761> up<00:17:50.810> at<00:17:50.842> the<00:17:50.987> store<00:17:51.229> level.

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Now<00:17:52.035> in<00:17:52.115> a<00:17:52.196> 3-year<00:17:52.518> period,<00:17:52.824> the<00:17:52.921> whole<00:17:53.163> system<00:17:53.566> is<00:17:53.711> retrofitted.

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That<00:17:55.396> system,<00:17:56.762> it<00:17:56.859> had<00:17:57.100> taken<00:17:57.502> Sonic<00:17:57.968> 44<00:17:58.611> years<00:17:59.093> from<00:17:59.270> 1953<00:18:00.058> to<00:18:00.090> '97.

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It<00:18:01.119> had<00:18:01.280> taken<00:18:01.585> us<00:18:01.762> 44<00:18:02.324> years<00:18:02.646> to<00:18:02.726> hit<00:18:02.968> $1<00:18:03.273> billion<00:18:03.675> in<00:18:03.820> sales.

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In<00:18:05.380> the<00:18:05.478> next<00:18:05.966> 4<00:18:06.356> years,<00:18:07.266> we<00:18:07.429> doubled.

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From<00:18:09.553> '97<00:18:10.117> to<00:18:10.150> '01—.

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Unbelievable.

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From<00:18:11.246> '97<00:18:11.730> to<00:18:11.762> '01,<00:18:12.295> we<00:18:12.456> went<00:18:12.569> from<00:18:12.859> $1<00:18:13.101> billion<00:18:13.424> to<00:18:13.665> $2<00:18:13.907> billion<00:18:14.052> in<00:18:14.101> sales.

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In<00:18:14.492> system-wide<00:18:15.053> sales.

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I<00:18:16.111> mean,<00:18:16.416> that,<00:18:17.138> yeah.

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Now,<00:18:18.164> you<00:18:18.260> want<00:18:18.405> to<00:18:18.581> ask<00:18:18.741> me,<00:18:18.982> do<00:18:19.126> I,<00:18:19.367> am<00:18:20.024> I<00:18:20.185> partial<00:18:20.586> to<00:18:20.746> ice<00:18:20.987> cream?

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Oh,<00:18:21.949> I<00:18:22.125> love<00:18:23.376> ice<00:18:23.889> cream.

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You<00:18:25.477> know,<00:18:25.958> you<00:18:26.054> might<00:18:26.279> say<00:18:26.519> I<00:18:26.600> have<00:18:26.824> a<00:18:26.840> sweet<00:18:27.305> spot,<00:18:27.706> you<00:18:27.786> know,<00:18:28.107> for<00:18:28.267> ice<00:18:28.508> cream,<00:18:28.845> but<00:18:29.326> that<00:18:29.727> transformed<00:18:30.368> the<00:18:30.593> business.

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And,<00:18:32.838> you<00:18:32.870> know,<00:18:33.079> again,<00:18:33.495> jumping<00:18:33.880> forward,<00:18:34.730> '01,<00:18:35.260> we<00:18:35.404> had<00:18:35.644> $2<00:18:35.821> billion.

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When<00:18:36.382> we<00:18:36.462> sold<00:18:36.767> the<00:18:36.863> company<00:18:37.264> in<00:18:37.344> 2018,<00:18:38.210> the<00:18:38.307> system-wide<00:18:38.804> sales<00:18:39.092> were<00:18:39.189> $4.5<00:18:39.670> billion.

00:18:40.712 --> 00:18:45.449
So<00:18:40.809> we<00:18:40.937> continued<00:18:41.435> to<00:18:41.579> grow,<00:18:42.398> not<00:18:42.495> at<00:18:42.623> the<00:18:42.719> same<00:18:42.960> pace,<00:18:43.859> a<00:18:43.923> little<00:18:44.389> difficult<00:18:44.726> to<00:18:44.871> pull<00:18:44.967> that<00:18:45.208> off.

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But<00:18:47.696> so<00:18:49.045> that<00:18:49.446> series<00:18:49.864> of<00:18:49.960> initiatives,<00:18:50.667> the<00:18:50.811> whole<00:18:50.923> Sonic<00:18:51.309> 2000,<00:18:51.855> the<00:18:52.015> physicality,<00:18:53.235> the<00:18:53.476> new<00:18:53.653> menu,<00:18:54.359> what<00:18:54.520> was<00:18:54.745> on<00:18:54.825> the<00:18:54.905> menu,<00:18:55.226> how<00:18:55.323> we<00:18:55.467> promoted<00:18:55.884> the<00:18:55.949> menu,<00:18:57.008> so<00:18:57.089> the<00:18:57.233> way<00:18:57.410> the<00:18:57.490> drive-ins<00:18:58.036> look,<00:18:58.277> but<00:18:58.389> suddenly<00:18:58.774> now<00:18:59.015> there's<00:18:59.401> bursting<00:18:59.978> advertising<00:19:01.728> because<00:19:02.082> if<00:19:02.210> you're<00:19:03.206> doing<00:19:03.575> in<00:19:03.671> '97,<00:19:05.277> let's<00:19:05.437> just<00:19:05.678> say<00:19:06.079> maybe,<00:19:06.690> 3%<00:19:06.962> of<00:19:07.283> sales<00:19:08.309> in<00:19:08.469> advertising.

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We<00:19:09.127> probably<00:19:09.448> weren't,<00:19:09.913> we're<00:19:10.009> probably<00:19:10.233> doing<00:19:10.474> 2.5%.

00:19:11.596 --> 00:19:15.188
So<00:19:11.693> let's<00:19:11.933> say,<00:19:12.254> let's<00:19:12.414> say<00:19:12.575> in<00:19:12.655> '97<00:19:13.280> we<00:19:13.376> did<00:19:13.537> $25<00:19:14.098> million<00:19:14.419> in<00:19:14.643> advertising.

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Oh,<00:19:16.263> by<00:19:16.375> '01<00:19:17.786> we<00:19:18.011> weren't<00:19:18.251> quite<00:19:18.444> at<00:19:18.508> 4%,<00:19:18.748> let's<00:19:19.310> say<00:19:19.470> 3.5%.

00:19:20.576 --> 00:19:29.877
You<00:19:20.673> go<00:19:20.817> from<00:19:20.977> $25<00:19:21.539> million<00:19:22.340> in<00:19:22.421> a<00:19:22.437> certain<00:19:22.677> number<00:19:22.934> of<00:19:23.014> states<00:19:25.002> to<00:19:26.141> something<00:19:26.510> on<00:19:26.606> the<00:19:26.766> order<00:19:26.927> of<00:19:26.959> $70<00:19:27.488> million<00:19:27.969> in<00:19:28.113> advertising<00:19:29.091> 4<00:19:29.332> years<00:19:29.637> later.

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So<00:19:30.855> I<00:19:30.871> mean,<00:19:31.176> everybody's<00:19:31.817> seeing<00:19:32.122> your<00:19:32.283> brand<00:19:32.699> a<00:19:32.780> lot<00:19:33.020> more.

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Seeing<00:19:33.887> it<00:19:33.983> on<00:19:34.208> advertising,<00:19:34.963> seeing<00:19:35.268> it<00:19:35.751> here<00:19:35.927> and<00:19:36.056> there.

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And<00:19:37.904> then,<00:19:38.804> so<00:19:39.125> that's<00:19:39.848> kind<00:19:40.073> of<00:19:40.153> the<00:19:40.234> first<00:19:40.571> big<00:19:40.748> stage.

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Now,<00:19:41.374> we<00:19:41.455> kept<00:19:41.696> growing<00:19:42.017> from<00:19:42.178> there<00:19:42.483> in<00:19:42.644> terms<00:19:42.917> of<00:19:43.030> other<00:19:43.222> methodology.

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So<00:19:44.492> I<00:19:44.524> don't<00:19:44.910> wanna<00:19:45.215> run<00:19:45.456> on<00:19:45.617> here<00:19:45.794> too<00:19:45.955> long.

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We<00:19:46.276> had<00:19:46.597> not,<00:19:46.983> the<00:19:47.144> number<00:19:47.465> one<00:19:47.722> thing,<00:19:48.590> no,<00:19:49.812> two<00:19:50.069> of<00:19:50.133> the<00:19:50.197> things<00:19:50.438> we<00:19:50.599> hadn't<00:19:50.840> done<00:19:51.017> from<00:19:51.178> a<00:19:51.194> marketing<00:19:51.531> standpoint<00:19:52.062> by<00:19:52.305> then<00:19:52.954> that<00:19:53.360> the<00:19:53.457> next<00:19:53.846> few<00:19:54.073> years<00:19:54.965> took<00:19:55.209> off.

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One<00:19:56.279> was<00:19:56.522> our<00:19:56.749> use<00:19:57.252> of<00:19:57.333> national<00:19:57.820> cable,<00:19:58.371> which<00:19:58.534> we<00:19:58.566> were<00:19:58.777> only<00:19:59.020> beginning.

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And<00:20:00.641> 2<00:20:02.109> was<00:20:02.270> the<00:20:02.415> Two<00:20:02.593> Guys<00:20:02.915> campaign.

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Those<00:20:04.753> came<00:20:05.011> later.

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But<00:20:06.285> we<00:20:06.382> hit<00:20:06.543> the<00:20:06.689> $2<00:20:06.930> billion<00:20:07.672> with<00:20:07.834> a<00:20:07.995> world<00:20:08.301> of<00:20:08.333> momentum<00:20:09.387> in<00:20:09.501> '01<00:20:10.197> and<00:20:10.342> the<00:20:10.423> business<00:20:10.828> really<00:20:11.087> had<00:20:11.330> been<00:20:11.573> transformed.

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And<00:20:13.094> so,<00:20:13.515> it<00:20:13.596> was<00:20:13.855> at<00:20:13.920> that<00:20:14.146> time<00:20:14.891> that<00:20:15.053> the<00:20:15.133> board<00:20:15.441> said,<00:20:16.130> you<00:20:16.243> know,<00:20:16.323> we'll<00:20:16.566> make<00:20:16.873> you<00:20:17.455> chairman<00:20:17.778> of<00:20:17.859> the<00:20:17.940> board.

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So,<00:20:20.445> that<00:20:20.671> was<00:20:21.156> a—.

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Yeah.

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I<00:20:21.883> want<00:20:22.012> to<00:20:22.125> ask<00:20:22.368> you<00:20:23.435> about<00:20:24.081> the<00:20:24.130> campaign.

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But<00:20:25.848> as<00:20:25.929> you<00:20:26.010> talk<00:20:26.205> about,<00:20:26.659> you<00:20:26.740> know,<00:20:27.308> really<00:20:27.632> pivoting<00:20:28.118> into<00:20:29.406> advertising<00:20:30.330> the<00:20:30.495> ice<00:20:30.743> cream<00:20:30.990> and<00:20:31.073> the<00:20:31.221> drinks.

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When<00:20:33.746> I<00:20:33.826> think<00:20:33.939> of<00:20:34.003> Sonic,<00:20:34.421> I<00:20:34.549> think<00:20:34.726> of<00:20:34.806> your<00:20:35.031> ice.

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How<00:20:35.465> did<00:20:35.674> you<00:20:35.755> figure<00:20:36.076> out<00:20:36.156> the<00:20:36.317> ice?

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Well,<00:20:38.165> I'd<00:20:38.647> like<00:20:38.888> to<00:20:38.920> tell<00:20:39.306> you<00:20:39.531> that<00:20:39.949> that<00:20:40.109> was<00:20:40.350> my<00:20:40.527> second<00:20:40.993> big<00:20:41.170> idea,<00:20:41.957> but<00:20:42.680> that<00:20:42.825> wouldn't<00:20:43.002> be<00:20:43.147> true.

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The<00:20:45.965> ice<00:20:46.948> really<00:20:47.254> was<00:20:47.447> something<00:20:47.979> that<00:20:48.237> our<00:20:49.606> founder<00:20:50.556> had<00:20:50.733> put<00:20:50.894> in<00:20:51.039> place<00:20:51.361> years<00:20:51.683> before<00:20:52.023> with<00:20:52.210> a<00:20:52.277> vendor<00:20:52.616> relationship.

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And<00:20:55.375> it<00:20:55.457> was<00:20:56.925> widely<00:20:57.792> loved,<00:20:58.596> you<00:20:58.628> know,<00:20:59.559> that<00:21:01.005> pellet<00:21:01.326> ice<00:21:01.905> in<00:21:01.985> the<00:21:02.081> Styrofoam<00:21:02.692> cups.

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And,<00:21:04.555> you<00:21:04.715> know,<00:21:04.860> people<00:21:05.197> could,<00:21:06.145> you<00:21:06.177> know,<00:21:06.402> nurse<00:21:06.723> that<00:21:06.964> drink.

00:21:07.446 --> 00:21:11.783
I<00:21:07.462> mean,<00:21:07.591> if<00:21:07.751> you're<00:21:07.848> driving<00:21:08.169> around<00:21:08.651> going<00:21:08.892> on<00:21:09.036> a<00:21:09.052> trip,<00:21:09.293> whatever,<00:21:09.679> you<00:21:09.727> can<00:21:09.856> nurse<00:21:10.177> that<00:21:10.257> drink<00:21:10.578> for<00:21:10.739> hours,<00:21:11.462> you<00:21:11.639> know.

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And<00:21:13.132> so<00:21:13.454> I'd<00:21:13.630> like<00:21:13.871> to<00:21:13.952> take—<00:21:14.353> claim<00:21:14.594> credit<00:21:14.915> for<00:21:15.060> that,<00:21:15.317> but<00:21:15.638> I<00:21:15.718> can't.

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So<00:21:17.244> that<00:21:17.389> was<00:21:17.501> our<00:21:17.646> founder,<00:21:18.048> Troy<00:21:18.288> Smith.

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That<00:21:18.931> was<00:21:19.092> one<00:21:19.236> of<00:21:19.333> his<00:21:20.457> numerous<00:21:21.019> brilliant<00:21:22.410> innovations,<00:21:23.007> you<00:21:23.896> know.

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How<00:21:25.334> did<00:21:26.141> you<00:21:26.885> make<00:21:27.208> sure<00:21:27.595> that<00:21:27.757> all<00:21:27.951> of<00:21:28.096> your<00:21:28.403> franchisees<00:21:29.469> kept<00:21:29.776> the<00:21:29.873> consistency<00:21:32.040> and<00:21:32.138> the<00:21:32.283> quality<00:21:32.963> of<00:21:33.109> the<00:21:33.190> brand?

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Yeah,<00:21:34.565> good<00:21:34.727> question.

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That<00:21:35.293> seems<00:21:35.520> like<00:21:35.682> that<00:21:35.795> would<00:21:35.941> be<00:21:36.184> really<00:21:36.507> difficult.

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Yeah.

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You<00:21:40.362> might<00:21:40.668> say,<00:21:42.218> like<00:21:42.396> a<00:21:42.445> lot<00:21:42.638> of<00:21:42.703> things<00:21:42.945> in<00:21:43.026> life,<00:21:43.252> you<00:21:43.284> might<00:21:43.526> say<00:21:43.656> a<00:21:43.752> carrot<00:21:44.156> and<00:21:44.318> a<00:21:44.334> stick,<00:21:45.771> but<00:21:45.852> the<00:21:45.948> carrot<00:21:46.320> always<00:21:46.514> had<00:21:46.659> to<00:21:46.740> be<00:21:47.442> meaningful<00:21:48.403> carrot,<00:21:49.108> you<00:21:49.140> know.

00:21:50.086 --> 00:21:59.172
And<00:21:50.182> so<00:21:51.929> before<00:21:52.329> that<00:21:52.554> license<00:21:52.970> conversion<00:21:53.451> process<00:21:54.012> in<00:21:54.092> '94-'95,<00:21:56.720> there<00:21:56.816> was<00:21:56.977> a<00:21:57.041> lot<00:21:57.281> of<00:21:57.457> inconsistency<00:21:58.579> in<00:21:58.723> the<00:21:58.803> system.

00:21:59.797 --> 00:22:04.749
I<00:21:59.845> mean,<00:22:00.021> literally<00:22:00.742> in<00:22:00.823> the<00:22:00.919> same<00:22:01.223> town,<00:22:01.528> you<00:22:01.624> could<00:22:01.768> pull<00:22:02.024> into<00:22:02.505> two<00:22:02.681> Sonics<00:22:03.547> and<00:22:03.691> their<00:22:03.787> menus<00:22:04.252> would<00:22:04.348> be<00:22:04.508> different.

00:22:05.694 --> 00:22:08.242
And<00:22:05.774> they<00:22:05.854> might<00:22:06.111> even<00:22:06.351> buy<00:22:06.575> from<00:22:06.752> different<00:22:07.938> vendors.

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And<00:22:08.755> they<00:22:08.851> might<00:22:09.155> have<00:22:09.316> different<00:22:09.636> size<00:22:09.941> hamburgers,<00:22:10.982> hamburger<00:22:11.319> patties<00:22:12.184> on<00:22:12.264> their<00:22:12.425> hamburgers.

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Literally,<00:22:15.230> literally.

00:22:15.827 --> 00:22:26.244
So<00:22:16.763> I<00:22:16.844> think<00:22:17.069> the<00:22:17.231> thing<00:22:17.473> that<00:22:19.409> made<00:22:19.731> that,<00:22:20.054> that<00:22:20.231> was<00:22:22.151> one,<00:22:23.861> we<00:22:23.910> went<00:22:24.087> through<00:22:24.183> that<00:22:24.344> license<00:22:24.715> agreement<00:22:24.988> process<00:22:25.455> that<00:22:25.552> required<00:22:26.132> it.

00:22:27.790 --> 00:22:41.852
You<00:22:28.112> know,<00:22:28.209> you<00:22:28.450> going<00:22:28.772> from<00:22:29.562> no<00:22:29.739> requirement<00:22:30.447> to<00:22:31.252> you<00:22:31.429> will,<00:22:32.718> going<00:22:32.959> from<00:22:33.185> a<00:22:33.330> general<00:22:33.765> requirement<00:22:34.330> about<00:22:34.572> specifications<00:22:36.007> to<00:22:36.088> a<00:22:36.169> requirement<00:22:36.814> you<00:22:37.137> will<00:22:37.475> buy<00:22:37.863> off<00:22:38.121> of<00:22:38.363> national<00:22:38.847> contracts<00:22:39.573> approved<00:22:40.137> by<00:22:40.460> the<00:22:40.680> the<00:22:41.178> franchisor.

00:22:43.186 --> 00:22:48.312
You<00:22:43.427> will<00:22:43.829> participate<00:22:45.130> with<00:22:45.516> an<00:22:45.677> agency<00:22:46.191> of<00:22:46.320> record<00:22:46.978> chosen<00:22:47.380> by<00:22:47.605> the<00:22:47.701> franchisor.

00:22:48.890 --> 00:22:50.564
You<00:22:49.148> will,<00:22:49.710> you<00:22:49.742> know,<00:22:49.887> so<00:22:50.080> and<00:22:50.193> so<00:22:50.419> forth.

00:22:51.142 --> 00:22:55.946
I<00:22:51.162> mean,<00:22:51.324> it<00:22:51.405> was<00:22:51.631> really<00:22:51.954> just<00:22:52.116> state-of-the-art<00:22:52.762> franchising<00:22:53.441> stuff,<00:22:53.894> but<00:22:54.007> it<00:22:54.136> had<00:22:54.298> not<00:22:54.476> been<00:22:54.573> in<00:22:54.702> place<00:22:55.041> for<00:22:55.526> the<00:22:55.607> company.

00:22:56.432 --> 00:22:58.199
Now<00:22:56.592> you<00:22:56.657> could<00:22:56.833> say,<00:22:57.058> was<00:22:57.155> that<00:22:57.380> difficult<00:22:57.797> politically?

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Initially,<00:22:59.067> yes.

00:23:00.368 --> 00:23:08.818
But<00:23:02.778> I<00:23:02.923> told<00:23:03.180> you<00:23:03.244> a<00:23:03.260> moment<00:23:03.582> ago<00:23:04.626> about<00:23:05.108> the<00:23:05.188> system<00:23:05.815> going<00:23:05.992> from<00:23:06.155> $1<00:23:06.319> billion<00:23:06.727> in<00:23:06.809> '97<00:23:07.462> to<00:23:07.626> $2<00:23:07.952> billion<00:23:08.279> in<00:23:08.312> '01.

00:23:10.690 --> 00:23:14.224
Because<00:23:11.851> they<00:23:11.933> had<00:23:12.048> not<00:23:12.342> all<00:23:12.440> been<00:23:12.686> buying<00:23:12.997> off<00:23:13.259> of<00:23:13.340> a<00:23:13.357> single<00:23:13.815> contract.

00:23:15.813 --> 00:23:27.834
When<00:23:16.057> we<00:23:16.644> started<00:23:16.969> requiring<00:23:17.523> that<00:23:17.718> in<00:23:17.865> '95,<00:23:18.354> '96,<00:23:19.494> and<00:23:19.656> then<00:23:19.901> blew<00:23:20.210> out<00:23:20.389> the<00:23:20.471> profitability,<00:23:23.626> we<00:23:23.868> were<00:23:24.094> buying<00:23:24.432> in<00:23:24.577> some<00:23:24.755> cases<00:23:25.400> better<00:23:25.803> product<00:23:26.690> on<00:23:26.835> a<00:23:26.867> national<00:23:27.399> basis.

00:23:28.302 --> 00:23:35.913
But<00:23:28.463> because<00:23:29.044> it<00:23:29.173> was<00:23:29.511> a<00:23:29.527> national<00:23:30.221> contract<00:23:30.866> or<00:23:30.963> a<00:23:31.061> system-wide<00:23:31.680> contract,<00:23:33.389> they<00:23:33.487> were<00:23:33.650> able<00:23:33.976> to<00:23:34.057> get<00:23:34.220> better<00:23:34.610> products<00:23:35.034> at<00:23:35.180> a<00:23:35.343> lower<00:23:35.669> price.

00:23:37.976 --> 00:23:40.798
And<00:23:38.120> so<00:23:38.938> what<00:23:39.900> was<00:23:40.205> the<00:23:40.381> carrot?

00:23:41.007 --> 00:23:55.906
The<00:23:41.183> carrot<00:23:41.729> was<00:23:43.028> that<00:23:43.349> from<00:23:43.573> that<00:23:43.766> same<00:23:44.150> '97<00:23:45.033> to<00:23:45.145> '01<00:23:45.658> timeframe,<00:23:47.422> profit<00:23:47.935> margins<00:23:49.202> improved<00:23:50.069> at<00:23:50.165> the<00:23:50.389> average<00:23:50.582> store<00:23:50.967> by<00:23:51.672> 500<00:23:52.955> basis<00:23:53.533> points,<00:23:53.918> meaning<00:23:54.238> 5<00:23:54.575> percentage<00:23:55.441> points.

00:23:56.821 --> 00:23:56.981
Wow.

00:23:57.206 --> 00:23:59.948
In<00:23:57.687> other<00:23:57.783> words,<00:23:59.290> well,<00:23:59.547> just<00:23:59.707> that.

00:24:00.189 --> 00:24:05.337
I<00:24:00.269> mean,<00:24:00.814> there<00:24:01.167> was<00:24:01.391> 5%<00:24:02.097> going<00:24:02.290> to<00:24:02.418> profit<00:24:02.899> that<00:24:03.140> there<00:24:03.300> had<00:24:03.557> not<00:24:03.797> been<00:24:04.038> in<00:24:04.118> '96,<00:24:04.759> '97.

00:24:06.364 --> 00:24:08.016
Now<00:24:07.310> do<00:24:07.551> the<00:24:07.583> math.

00:24:09.172 --> 00:24:18.687
5<00:24:09.733> percentage,<00:24:10.760> incremental<00:24:11.579> percentage<00:24:12.285> points<00:24:12.686> of<00:24:13.408> improvement<00:24:14.146> and<00:24:14.307> profit<00:24:15.414> on<00:24:16.393> $2<00:24:17.035> billion<00:24:17.837> in<00:24:18.013> sales.

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I<00:24:19.939> mean,<00:24:20.469> you<00:24:20.661> know,<00:24:20.870> you're,<00:24:21.351> you're,<00:24:21.929> you're<00:24:22.089> talking<00:24:22.490> about<00:24:22.811> $100<00:24:24.480> million<00:24:25.459> in<00:24:25.620> profits<00:24:27.208> in<00:24:27.304> these<00:24:27.770> independent<00:24:28.331> operators'<00:24:28.973> hands<00:24:30.273> that<00:24:30.417> had<00:24:30.594> not<00:24:30.835> existed<00:24:31.509> just<00:24:31.958> a<00:24:32.038> few<00:24:32.343> years<00:24:32.600> before.

00:24:35.120 --> 00:24:38.359
So,<00:24:35.317> it<00:24:35.447> doesn't<00:24:35.987> take<00:24:36.167> a<00:24:36.232> very<00:24:36.461> big<00:24:36.641> stick<00:24:37.623> when<00:24:37.770> you<00:24:37.852> got<00:24:38.097> that.

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Yeah,<00:24:40.211> when<00:24:40.374> it's<00:24:40.537> that<00:24:40.781> obvious<00:24:41.676> and<00:24:42.409> you're<00:24:42.751> seeing<00:24:43.076> those<00:24:43.304> types<00:24:43.581> of<00:24:43.646> results,<00:24:44.216> I<00:24:44.297> imagine<00:24:44.851> it<00:24:44.932> doesn't<00:24:45.193> take<00:24:45.355> too<00:24:45.486> much<00:24:45.697> of<00:24:45.779> a<00:24:45.844> stick.

00:24:47.373 --> 00:24:50.823
Let<00:24:47.681> me<00:24:47.843> ask<00:24:48.005> you<00:24:48.086> this<00:24:48.264> because<00:24:48.734> you<00:24:48.815> brought<00:24:48.993> up<00:24:49.090> something<00:24:49.625> that<00:24:49.787> I<00:24:49.949> find<00:24:50.192> pretty<00:24:50.435> interesting.

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That's<00:24:51.488> like<00:24:51.666> the<00:24:51.828> advantages<00:24:53.189> and<00:24:53.367> disadvantages<00:24:54.258> of<00:24:54.323> the<00:24:54.420> franchise<00:24:55.052> model.

00:24:55.538 --> 00:25:03.437
You<00:24:55.635> said<00:24:56.363> before<00:24:56.768> that<00:24:56.913> about<00:24:57.236> 95%<00:24:59.095> of<00:24:59.257> all<00:24:59.499> the<00:24:59.580> Sonics<00:25:00.643> were<00:25:01.515> owned<00:25:01.693> by<00:25:02.484> franchisees.

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What<00:25:04.923> are<00:25:05.004> the<00:25:05.165> advantages?

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What<00:25:06.037> are<00:25:06.118> the<00:25:06.360> disadvantages<00:25:07.167> to<00:25:07.264> that<00:25:07.490> model?

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Well,<00:25:09.927> the<00:25:10.024> beauty<00:25:10.331> of<00:25:10.363> franchising<00:25:12.434> is<00:25:13.258> you<00:25:13.420> can<00:25:14.471> build<00:25:14.730> a<00:25:14.795> brand<00:25:15.118> on<00:25:15.199> a<00:25:15.215> national<00:25:15.749> basis<00:25:16.234> in<00:25:16.331> terms<00:25:16.881> of<00:25:17.464> the<00:25:18.175> single<00:25:18.515> characteristics<00:25:19.243> that<00:25:20.052> are<00:25:20.197> identifying<00:25:21.006> from<00:25:21.184> a<00:25:21.265> customer<00:25:21.767> standpoint,<00:25:22.802> at<00:25:22.948> least<00:25:23.190> on<00:25:23.288> a<00:25:23.368> remote<00:25:23.935> basis.

00:25:25.934 --> 00:25:48.036
But<00:25:26.108> you<00:25:26.213> take<00:25:26.561> the<00:25:26.736> piece<00:25:27.877> that<00:25:28.751> is<00:25:28.994> most<00:25:29.398> critical<00:25:30.208> in<00:25:30.305> terms<00:25:30.644> of<00:25:30.774> customer<00:25:31.340> interaction,<00:25:32.975> and<00:25:33.460> that<00:25:33.687> is<00:25:33.929> the<00:25:34.010> restaurant<00:25:34.399> itself<00:25:34.933> in<00:25:35.078> the<00:25:35.159> case<00:25:35.467> of<00:25:35.499> restaurant<00:25:35.952> franchising,<00:25:37.004> but<00:25:37.158> the<00:25:37.260> customer<00:25:37.842> experience,<00:25:39.822> you<00:25:39.967> take<00:25:40.225> that<00:25:40.772> and<00:25:40.869> you<00:25:42.141> have<00:25:42.383> the<00:25:42.480> potential<00:25:43.124> anyway<00:25:43.446> to<00:25:43.607> put<00:25:43.832> it<00:25:44.396> in<00:25:44.493> the<00:25:44.654> hands<00:25:45.379> with<00:25:45.524> franchising,<00:25:46.651> in<00:25:46.731> the<00:25:46.828> hands<00:25:47.166> of<00:25:47.311> a<00:25:47.537> local<00:25:47.859> operator.

00:25:51.551 --> 00:25:59.852
And<00:25:51.975> maybe<00:25:52.284> they<00:25:52.398> don't<00:25:52.692> live<00:25:52.936> in<00:25:53.017> the<00:25:53.099> community,<00:25:55.107> Oftentimes<00:25:56.807> an<00:25:56.967> individual<00:25:57.448> franchisee<00:25:58.073> does<00:25:58.329> live<00:25:58.506> in<00:25:58.554> the<00:25:58.650> community<00:25:58.987> in<00:25:59.115> which<00:25:59.291> they're<00:25:59.452> operating.

00:26:00.638 --> 00:26:19.779
And<00:26:00.894> that's—<00:26:01.872> it's<00:26:02.017> really<00:26:02.417> fantastic<00:26:02.978> from<00:26:03.123> that<00:26:03.235> standpoint<00:26:03.780> because<00:26:04.085> you<00:26:04.181> get—<00:26:04.726> what<00:26:04.902> you<00:26:05.127> get<00:26:06.249> is<00:26:06.361> a<00:26:06.425> small<00:26:06.746> business<00:26:07.211> operator<00:26:07.708> with<00:26:07.868> the<00:26:08.429> economic<00:26:08.974> advantages<00:26:09.487> of<00:26:09.615> big<00:26:09.792> business,<00:26:10.273> i.e.,<00:26:10.994> you<00:26:11.074> get<00:26:11.218> to<00:26:11.315> buy<00:26:11.635> off<00:26:11.940> a<00:26:11.972> national<00:26:12.437> contract,<00:26:12.982> you<00:26:13.078> get<00:26:13.543> advertised<00:26:14.200> on<00:26:14.280> a<00:26:14.296> national<00:26:14.761> contract,<00:26:15.627> but<00:26:15.787> you<00:26:16.108> operate,<00:26:16.525> you<00:26:16.669> hire<00:26:16.845> your<00:26:16.909> employees<00:26:17.486> locally,<00:26:18.048> and<00:26:18.673> you<00:26:18.785> know<00:26:19.170> your<00:26:19.330> customers.

00:26:20.212 --> 00:26:26.038
So<00:26:20.613> to<00:26:20.774> me,<00:26:21.801> in<00:26:21.961> its<00:26:22.298> most<00:26:22.523> pure<00:26:22.780> form,<00:26:23.486> that's<00:26:23.727> the<00:26:23.887> ideal<00:26:24.946> of<00:26:25.171> franchising.

00:26:27.113 --> 00:26:48.552
Now<00:26:27.498> you<00:26:27.595> do<00:26:27.835> have<00:26:28.076> a<00:26:28.782> potential<00:26:29.424> consistency<00:26:30.243> issue,<00:26:31.270> and<00:26:31.928> that<00:26:32.169> really<00:26:32.329> goes<00:26:32.650> back<00:26:32.891> to,<00:26:33.453> from<00:26:33.613> my<00:26:33.774> standpoint,<00:26:34.416> what's<00:26:34.737> the<00:26:35.042> philosophy<00:26:35.635> and<00:26:35.764> culture<00:26:36.181> of<00:26:36.326> the<00:26:36.422> franchisor<00:26:37.866> in<00:26:38.011> dealing<00:26:38.252> with<00:26:38.412> franchisees,<00:26:39.856> as<00:26:40.017> well<00:26:40.274> as<00:26:40.595> what's<00:26:40.836> the<00:26:40.916> power<00:26:41.317> under<00:26:41.477> the<00:26:41.558> license<00:26:42.055> agreement,<00:26:43.227> as<00:26:43.403> well<00:26:43.724> as<00:26:44.029> then<00:26:44.270> what's<00:26:44.447> your<00:26:44.607> practice<00:26:45.506> then<00:26:46.436> for<00:26:46.677> requiring<00:26:47.254> that<00:26:47.414> level<00:26:47.671> of<00:26:47.735> consistency.

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And<00:26:49.257> you<00:26:49.418> do<00:26:49.642> have<00:26:49.819> to<00:26:49.867> have<00:26:50.043> that<00:26:50.299> approach.

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It<00:26:51.261> doesn't<00:26:51.646> have<00:26:51.822> to<00:26:51.902> be<00:26:52.704> heavy-handed<00:26:53.345> or<00:26:53.569> mean.

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The<00:26:55.188> question<00:26:55.589> is,<00:26:55.749> how<00:26:56.006> do<00:26:56.134> you<00:26:56.230> build<00:26:56.471> the<00:26:56.631> brand?

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And<00:26:57.737> if<00:26:57.833> you<00:26:57.913> have<00:26:58.138> high<00:26:58.298> level<00:26:58.555> of<00:26:58.699> inconsistency,<00:26:59.581> you're<00:26:59.677> gonna<00:26:59.901> undermine<00:27:00.318> your<00:27:00.478> brand.

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So<00:27:02.482> that<00:27:02.642> doesn't<00:27:02.802> mean<00:27:03.043> you<00:27:03.123> don't<00:27:03.347> have<00:27:03.524> some<00:27:03.828> testing<00:27:04.389> and<00:27:04.486> so<00:27:04.726> on,<00:27:04.806> but<00:27:05.031> you<00:27:05.111> need<00:27:05.287> to<00:27:05.447> work<00:27:05.688> with<00:27:05.912> individual<00:27:06.553> operators<00:27:07.371> to<00:27:08.076> know<00:27:08.237> what<00:27:08.397> the<00:27:08.477> testing<00:27:08.958> is<00:27:09.294> and<00:27:10.336> make<00:27:10.497> sure<00:27:10.673> it's<00:27:10.817> handled<00:27:11.202> right<00:27:11.539> and<00:27:11.619> marketed<00:27:12.100> right<00:27:12.276> and<00:27:12.500> so<00:27:12.741> on.

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So,<00:27:14.828> franchising<00:27:15.614> is<00:27:15.791> its<00:27:15.952> own<00:27:16.273> business.

00:27:17.156 --> 00:27:22.824
I<00:27:17.236> think<00:27:17.397> people<00:27:17.782> that<00:27:17.943> have<00:27:18.135> a<00:27:18.199> business<00:27:18.681> and<00:27:18.777> say,<00:27:19.002> oh,<00:27:19.099> we're<00:27:19.179> going<00:27:19.323> to<00:27:19.404> franchise<00:27:19.837> because<00:27:20.126> it's<00:27:20.752> easy<00:27:20.929> money,<00:27:21.636> that's<00:27:21.812> the<00:27:21.973> wrong<00:27:22.294> approach.

00:27:23.594 --> 00:27:31.992
It<00:27:23.803> is<00:27:24.879> a<00:27:25.024> different<00:27:25.361> approach<00:27:25.891> to<00:27:26.051> growing<00:27:26.469> a<00:27:26.613> business<00:27:28.058> and<00:27:28.476> you're<00:27:28.700> using<00:27:29.118> other<00:27:29.279> people's<00:27:29.600> capital,<00:27:30.306> i.e.,<00:27:30.948> local<00:27:31.270> franchisee.

00:27:32.891 --> 00:27:55.353
But,<00:27:33.839> you<00:27:34.095> know,<00:27:35.123> if<00:27:35.300> you—<00:27:35.605> but<00:27:35.942> when<00:27:36.103> you<00:27:36.279> do<00:27:36.584> that,<00:27:36.970> you<00:27:37.146> do<00:27:37.628> one,<00:27:37.869> you<00:27:38.013> have<00:27:38.190> to<00:27:39.136> you<00:27:39.232> had<00:27:39.393> to<00:27:39.553> manage<00:27:40.178> the<00:27:40.258> relationship<00:27:40.755> with<00:27:40.899> the<00:27:40.979> individual<00:27:41.460> franchisee,<00:27:42.678> but<00:27:42.838> you<00:27:42.982> also<00:27:43.319> had<00:27:43.463> to<00:27:43.559> be<00:27:43.719> very<00:27:43.960> clear<00:27:44.360> about,<00:27:45.225> and<00:27:46.043> in<00:27:47.565> contract,<00:27:48.446> in<00:27:48.671> philosophy,<00:27:49.328> and<00:27:49.424> in<00:27:49.568> practice,<00:27:50.770> you<00:27:50.818> had<00:27:50.866> to<00:27:50.930> be<00:27:51.154> very<00:27:51.331> clear<00:27:51.651> about<00:27:51.956> what's<00:27:52.276> expected,<00:27:53.254> you<00:27:53.286> know,<00:27:53.478> from<00:27:53.590> a<00:27:53.654> consumer<00:27:54.119> experience<00:27:54.712> standpoint.

00:27:55.962 --> 00:28:00.561
And<00:27:56.058> it's<00:27:56.282> not,<00:27:56.843> you<00:27:56.939> know,<00:27:57.099> doing<00:27:57.340> whatever<00:27:57.644> the<00:27:57.740> hell<00:27:57.965> you<00:27:58.125> want<00:27:58.381> because<00:27:58.686> you're<00:27:58.846> an<00:27:58.926> independent<00:27:59.343> franchisee,<00:28:00.384> you<00:28:00.464> know.

00:28:01.282 --> 00:28:03.637
So<00:28:02.291> I<00:28:02.307> hope<00:28:02.548> that<00:28:02.644> answers<00:28:02.948> your<00:28:03.189> question.

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That's<00:28:04.390> my<00:28:05.256> perspective.

00:28:06.057 --> 00:28:09.648
Yeah,<00:28:06.233> I<00:28:06.394> think<00:28:06.554> franchising<00:28:07.436> is<00:28:07.516> such<00:28:07.756> an<00:28:07.836> interesting<00:28:08.381> innovation,<00:28:09.023> right?

00:28:10.706 --> 00:28:12.373
And<00:28:11.187> who<00:28:11.347> came<00:28:11.587> up<00:28:11.700> with<00:28:11.844> franchising?

00:28:12.469 --> 00:28:13.046
Do<00:28:12.549> you<00:28:12.581> know?

00:28:13.351 --> 00:28:14.377
I<00:28:13.447> don't<00:28:13.607> know<00:28:13.767> the<00:28:13.928> answer<00:28:14.104> to<00:28:14.152> that.

00:28:14.729 --> 00:28:20.099
It<00:28:14.809> began<00:28:15.274> growing<00:28:16.813> more<00:28:17.198> heavily<00:28:17.534> as<00:28:17.679> part<00:28:17.791> of<00:28:17.871> the<00:28:18.240> US<00:28:18.512> economy<00:28:19.041> post-World<00:28:19.618> War<00:28:19.859> II.

00:28:20.740 --> 00:28:31.127
If<00:28:20.820> you<00:28:20.981> think<00:28:21.141> back<00:28:21.397> about<00:28:21.702> the<00:28:21.846> Howard<00:28:22.103> Johnson's<00:28:22.760> and<00:28:22.888> the<00:28:22.968> Holiday<00:28:23.529> Inn<00:28:23.866> and<00:28:24.026> so<00:28:24.251> on,<00:28:24.908> the<00:28:25.453> hotels<00:28:26.174> were<00:28:26.415> one<00:28:26.575> of<00:28:26.655> the<00:28:27.553> early<00:28:28.755> spots,<00:28:29.316> although<00:28:29.460> there<00:28:29.557> was<00:28:29.813> some<00:28:30.102> food<00:28:30.342> service<00:28:30.823> with<00:28:30.999> it.

00:28:32.682 --> 00:28:37.654
Some<00:28:33.164> of<00:28:33.244> the<00:28:33.484> early<00:28:33.869> Marriott<00:28:34.446> stuff<00:28:34.831> was,<00:28:35.328> you<00:28:35.569> know,<00:28:36.692> food<00:28:36.932> court<00:28:37.173> sort<00:28:37.301> of<00:28:37.349> stuff.

00:28:38.279 --> 00:28:42.914
Anyway,<00:28:39.161> those<00:28:39.482> were<00:28:39.658> the—<00:28:40.460> that<00:28:40.685> was<00:28:40.845> the<00:28:40.925> nature<00:28:41.198> of<00:28:41.326> expansion<00:28:41.903> post-World<00:28:42.449> War<00:28:42.545> II.

00:28:43.828 --> 00:29:02.050
My<00:28:43.988> suspicion<00:28:44.614> is<00:28:45.255> that<00:28:45.512> our<00:28:45.816> interstate<00:28:46.217> highway<00:28:46.570> system<00:28:47.035> really<00:28:47.596> caused<00:28:47.933> it<00:28:48.077> to<00:28:48.398> go<00:28:48.623> to<00:28:48.735> another<00:28:49.104> level<00:28:50.467> altogether<00:28:51.044> because,<00:28:51.686> you<00:28:51.718> know,<00:28:51.910> people<00:28:53.209> traveling<00:28:53.690> cross-country<00:28:54.636> more<00:28:55.919> enjoyed<00:28:57.298> seeing<00:28:57.619> brands<00:28:58.004> that<00:28:58.164> they<00:28:58.325> were<00:28:59.159> accustomed<00:28:59.769> to<00:29:00.026> and<00:29:01.150> favorable<00:29:01.632> toward.

00:29:02.820 --> 00:29:08.938
And<00:29:02.917> then<00:29:04.105> just<00:29:04.282> with<00:29:04.426> the<00:29:04.522> evolution<00:29:05.149> of<00:29:05.245> it,<00:29:05.422> it's<00:29:05.630> become—<00:29:06.771> it's<00:29:07.076> a<00:29:07.156> huge<00:29:07.413> part<00:29:07.638> of<00:29:07.718> our<00:29:07.879> economy,<00:29:08.681> you<00:29:08.714> know.

00:29:09.404 --> 00:29:10.544
But<00:29:09.500> the<00:29:09.581> thing<00:29:09.886> I<00:29:09.966> love<00:29:10.207> about<00:29:10.432> it—.

00:29:10.689 --> 00:29:11.829
Oh,<00:29:10.785> it's<00:29:11.186> enormous.

00:29:11.909 --> 00:29:26.313
The<00:29:12.070> thing<00:29:12.310> I<00:29:12.375> love<00:29:12.616> about<00:29:12.969> it<00:29:13.033> is<00:29:13.194> that<00:29:13.354> it's<00:29:13.659> a—<00:29:14.799> it<00:29:14.944> is<00:29:15.121> a<00:29:15.185> way<00:29:16.084> for<00:29:16.164> a<00:29:16.229> person<00:29:16.485> who<00:29:16.646> wants<00:29:16.823> to<00:29:16.951> operate<00:29:17.224> a<00:29:17.288> small<00:29:17.610> business<00:29:18.974> to<00:29:19.520> lower<00:29:19.842> the<00:29:19.938> risk<00:29:20.259> considerably<00:29:21.206> because<00:29:21.447> they<00:29:21.544> do<00:29:21.785> get<00:29:22.009> to,<00:29:22.812> one,<00:29:23.808> step<00:29:24.049> into<00:29:24.274> a<00:29:24.354> business<00:29:24.739> model<00:29:25.012> that's<00:29:25.157> been<00:29:25.301> shown<00:29:25.478> to<00:29:25.574> work<00:29:25.799> elsewhere.

00:29:26.666 --> 00:29:31.017
2,<00:29:27.244> get<00:29:27.405> to<00:29:27.485> buy<00:29:27.806> off<00:29:28.850> purchasing<00:29:29.315> contracts,<00:29:29.877> so<00:29:30.215> lower<00:29:30.455> the<00:29:30.600> cost.

00:29:32.141 --> 00:29:50.045
And<00:29:32.286> then<00:29:32.463> 3,<00:29:33.346> depending<00:29:33.843> upon<00:29:34.293> the<00:29:34.325> circumstance,<00:29:35.497> leverage<00:29:35.899> off<00:29:36.541> of<00:29:37.842> broader,<00:29:38.885> within<00:29:39.190> a<00:29:39.206> market,<00:29:39.752> within<00:29:39.993> a<00:29:40.025> state,<00:29:40.555> across<00:29:40.876> country,<00:29:41.213> whatever,<00:29:42.016> marketing<00:29:42.739> programs<00:29:43.702> that—<00:29:44.104> because<00:29:44.425> the<00:29:44.585> average<00:29:45.372> operator<00:29:45.934> can<00:29:46.111> be<00:29:46.335> excellent<00:29:46.753> at<00:29:46.817> operations,<00:29:47.395> but<00:29:47.475> they're<00:29:47.636> not<00:29:47.877> a<00:29:47.893> marketing<00:29:48.423> person<00:29:48.824> necessarily,<00:29:49.723> you<00:29:49.820> know?

00:29:50.687 --> 00:29:51.425
So,<00:29:51.104> right.

00:29:53.139 --> 00:29:53.639
So<00:29:53.220> I<00:29:53.461> think—.

00:29:53.639 --> 00:29:54.702
Was<00:29:53.784> it<00:29:53.880> Ray<00:29:54.106> Kroc<00:29:54.589> who—.

00:29:55.169 --> 00:29:56.248
Yeah,<00:29:55.813> did<00:29:55.958> McDonald's.

00:29:56.377 --> 00:30:02.488
Was<00:29:56.538> it<00:29:56.602> Ray<00:29:56.844> Kroc<00:29:57.101> who<00:29:57.263> really<00:29:57.585> kind<00:29:57.891> of<00:29:58.793> showed<00:29:59.195> that<00:29:59.340> it<00:29:59.421> was<00:30:00.242> great<00:30:01.047> from<00:30:01.305> a<00:30:01.370> fast<00:30:01.660> food<00:30:01.925> perspective?

00:30:02.670 --> 00:30:03.598
Perhaps<00:30:03.382> so.

00:30:03.912 --> 00:30:10.367
He<00:30:04.078> might<00:30:04.277> have,<00:30:06.517> you<00:30:06.777> know,<00:30:06.939> as<00:30:07.102> I<00:30:07.248> think<00:30:07.492> back<00:30:07.849> about<00:30:08.239> that,<00:30:08.726> who<00:30:09.214> was<00:30:09.539> before<00:30:09.864> McDonald's?

00:30:10.497 --> 00:30:13.681
Well,<00:30:10.920> A&W<00:30:11.553> was<00:30:11.894> before<00:30:12.950> McDonald's,<00:30:13.421> right?

00:30:13.989 --> 00:30:14.509
Yeah.

00:30:14.964 --> 00:30:16.214
Yeah.

00:30:16.913 --> 00:30:18.358
I'd<00:30:17.319> have<00:30:17.368> to<00:30:17.644> think<00:30:17.806> about<00:30:18.066> who<00:30:18.293> else.

00:30:19.122 --> 00:30:22.248
But<00:30:20.806> there<00:30:21.463> were<00:30:21.832> a<00:30:22.072> few.

00:30:22.393 --> 00:30:28.821
What<00:30:22.505> he<00:30:22.729> did,<00:30:23.034> of<00:30:23.130> course,<00:30:23.451> was<00:30:23.755> just<00:30:23.996> take<00:30:24.188> it<00:30:24.332> to<00:30:24.493> a<00:30:24.557> level<00:30:24.893> of<00:30:24.990> success<00:30:25.679> that<00:30:26.641> outstripped<00:30:27.619> anybody<00:30:28.100> else,<00:30:28.564> you<00:30:28.596> know?

00:30:29.061 --> 00:30:29.302
Yeah.

00:30:29.783 --> 00:30:46.728
So<00:30:30.809> speaking<00:30:31.851> of<00:30:31.963> your<00:30:32.171> brand<00:30:33.614> and<00:30:33.694> you<00:30:34.047> mentioned<00:30:34.368> this,<00:30:34.512> the<00:30:34.672> Two<00:30:34.897> Guys<00:30:35.233> in<00:30:35.313> the<00:30:35.474> Car,<00:30:37.157> which<00:30:37.397> is<00:30:37.558> probably<00:30:37.958> one<00:30:38.135> of<00:30:38.199> the<00:30:38.295> most<00:30:38.519> successful<00:30:39.626> advertising<00:30:40.203> campaigns<00:30:42.367> that<00:30:42.591> I<00:30:42.687> can<00:30:42.832> remember<00:30:43.248> over<00:30:43.409> the<00:30:43.489> past<00:30:45.571> decade<00:30:45.930> or<00:30:46.060> more<00:30:46.158> or<00:30:46.402> so.

00:30:47.689 --> 00:30:50.164
How<00:30:48.177> did<00:30:48.340> you<00:30:48.438> think<00:30:48.698> about<00:30:48.926> your<00:30:49.040> national<00:30:49.496> commercials?

00:30:50.229 --> 00:30:51.418
How<00:30:50.311> did<00:30:50.539> you<00:30:50.620> come<00:30:50.734> up<00:30:50.881> with<00:30:51.027> that<00:30:51.190> idea?

00:30:52.877 --> 00:31:06.598
Well,<00:30:53.537> the—<00:30:55.630> what<00:30:55.791> was<00:30:55.968> going<00:30:56.338> on<00:30:57.224> early,<00:30:59.172> just<00:30:59.398> after<00:30:59.655> the<00:30:59.800> turn<00:30:59.961> of<00:31:00.042> the<00:31:00.074> century,<00:31:01.696> if<00:31:01.776> you<00:31:01.857> go<00:31:01.954> back<00:31:02.276> and<00:31:02.421> look<00:31:02.599> at<00:31:04.356> what<00:31:04.534> people<00:31:04.840> were<00:31:04.872> buying<00:31:05.179> into,<00:31:05.566> cable<00:31:05.969> was<00:31:06.211> growing.

00:31:09.088 --> 00:31:22.426
And<00:31:09.513> at<00:31:09.660> that<00:31:09.840> time,<00:31:12.863> Initially,<00:31:13.670> you<00:31:13.703> know,<00:31:13.913> cable<00:31:14.236> was<00:31:14.478> all<00:31:14.575> about<00:31:16.334> the<00:31:16.480> local<00:31:16.738> franchise<00:31:17.384> who<00:31:17.529> was<00:31:17.626> granted<00:31:17.933> it,<00:31:18.030> and<00:31:18.256> then<00:31:18.433> you<00:31:18.578> could<00:31:18.756> kind<00:31:18.917> of<00:31:18.998> watch,<00:31:20.130> you<00:31:20.196> know,<00:31:20.311> specialty<00:31:21.016> programs<00:31:21.688> sort<00:31:21.918> of<00:31:21.951> stuff.

00:31:24.243 --> 00:31:30.220
So<00:31:25.116> things<00:31:25.277> started<00:31:25.535> getting<00:31:25.778> a<00:31:25.923> little<00:31:26.101> splintered<00:31:29.073> in<00:31:29.170> terms<00:31:29.493> of<00:31:29.573> viewership.

00:31:31.489 --> 00:31:38.585
And<00:31:31.509> so<00:31:32.715> you<00:31:33.632> say,<00:31:33.921> what<00:31:34.162> was,<00:31:34.339> you<00:31:35.224> know,<00:31:35.449> what<00:31:35.610> was<00:31:35.851> working<00:31:36.189> at<00:31:36.269> the<00:31:36.350> time<00:31:36.671> that<00:31:36.752> was<00:31:36.913> getting<00:31:37.154> more<00:31:37.331> sensational<00:31:38.038> viewership?

00:31:39.739 --> 00:31:50.744
And<00:31:39.836> if<00:31:39.916> you<00:31:39.996> recall,<00:31:40.479> sometime<00:31:41.041> back<00:31:41.347> around<00:31:42.890> 2000,<00:31:43.838> I<00:31:44.176> forget<00:31:44.561> exactly<00:31:45.043> when,<00:31:47.069> one<00:31:47.165> of<00:31:47.229> the<00:31:47.310> programs<00:31:47.680> that<00:31:48.024> just<00:31:48.368> flat<00:31:48.696> took<00:31:48.958> off<00:31:49.351> was<00:31:49.679> Do<00:31:49.761> You<00:31:49.843> Want<00:31:49.990> to<00:31:50.089> Be<00:31:50.187> a<00:31:50.318> Millionaire?

00:31:52.952 --> 00:31:53.097
Right.

00:31:53.193 --> 00:31:57.532
And<00:31:53.498> I<00:31:53.595> mean,<00:31:53.820> it<00:31:53.900> was<00:31:54.061> like<00:31:54.382> all<00:31:54.623> of<00:31:54.736> a<00:31:54.816> sudden,<00:31:55.764> I<00:31:56.166> mean,<00:31:56.551> the<00:31:56.728> thing<00:31:56.889> was<00:31:57.114> popular.

00:31:58.496 --> 00:32:01.935
And<00:31:58.576> then<00:31:58.737> because<00:31:59.122> it<00:31:59.203> was<00:31:59.364> popular,<00:31:59.797> it<00:31:59.846> wasn't<00:32:00.022> once<00:32:00.247> a<00:32:00.328> week,<00:32:00.585> it<00:32:00.649> was<00:32:00.810> like<00:32:01.051> on<00:32:01.372> every<00:32:01.549> night.

00:32:04.014 --> 00:32:05.794
And<00:32:04.177> so<00:32:04.504> you<00:32:04.667> say,<00:32:04.977> well,<00:32:05.157> what's<00:32:05.402> going<00:32:05.647> on?

00:32:05.876 --> 00:32:07.199
Well,<00:32:06.366> it's<00:32:06.545> authentic.

00:32:07.280 --> 00:32:08.603
You<00:32:07.362> know,<00:32:07.754> I<00:32:07.852> mean,<00:32:07.999> it's<00:32:08.179> right<00:32:08.505> there.

00:32:08.685 --> 00:32:14.254
It's<00:32:09.419> live<00:32:10.330> and<00:32:10.493> it's<00:32:11.063> sensational<00:32:11.958> and<00:32:12.105> whatever<00:32:12.349> was<00:32:12.528> going<00:32:12.707> to<00:32:12.903> happen<00:32:13.180> was<00:32:13.342> going<00:32:13.456> to<00:32:13.505> happen<00:32:13.831> right<00:32:14.156> then.

00:32:15.380 --> 00:32:23.164
So<00:32:15.412> one<00:32:15.573> of<00:32:15.670> the<00:32:15.718> things<00:32:15.960> that<00:32:16.798> occurred<00:32:17.249> to<00:32:17.507> us<00:32:18.554> and<00:32:18.796> our<00:32:19.102> agency,<00:32:19.844> Barkley<00:32:20.553> was<00:32:20.666> the<00:32:20.891> agency<00:32:21.617> that<00:32:22.342> put<00:32:22.422> the<00:32:22.567> thing<00:32:22.761> together.

00:32:24.983 --> 00:32:50.258
One<00:32:25.160> of<00:32:25.193> the<00:32:25.225> things<00:32:25.450> that<00:32:25.933> occurred<00:32:26.271> to<00:32:26.415> us<00:32:26.592> was<00:32:28.443> what<00:32:28.668> is<00:32:28.829> attracting<00:32:29.472> people<00:32:30.840> more<00:32:31.081> than<00:32:31.258> anything<00:32:31.966> else<00:32:32.208> is<00:32:33.286> something<00:32:33.690> live,<00:32:34.091> something<00:32:34.493> more<00:32:34.677> spontaneous<00:32:36.517> And<00:32:37.046> our<00:32:37.094> hunch<00:32:37.817> was<00:32:39.101> something<00:32:39.567> that<00:32:39.727> had<00:32:39.904> a<00:32:39.920> sense<00:32:41.653> of—<00:32:42.312> to<00:32:42.376> use<00:32:42.617> the<00:32:42.697> term,<00:32:43.018> sounds<00:32:43.355> worse<00:32:43.660> than<00:32:43.821> it's<00:32:43.997> in<00:32:44.158> for<00:32:44.254> itself—<00:32:45.362> voyeurism,<00:32:47.609> where<00:32:47.753> you<00:32:47.850> can<00:32:48.075> kind<00:32:48.251> of<00:32:48.572> see<00:32:48.957> inside,<00:32:49.921> you<00:32:50.017> know.

00:32:51.446 --> 00:33:06.654
And<00:32:52.200> so<00:32:53.853> our<00:32:54.592> initial<00:32:55.073> thought<00:32:55.395> and<00:32:55.700> the<00:32:55.860> way<00:32:56.037> we<00:32:56.117> started<00:32:56.486> with<00:32:56.679> this<00:32:56.984> thing<00:32:57.241> was<00:32:58.766> the<00:32:58.926> two<00:32:59.151> guys<00:33:00.435> would<00:33:00.596> travel<00:33:01.013> around<00:33:01.254> to<00:33:01.398> competitor<00:33:01.960> stores<00:33:02.779> with<00:33:02.939> a<00:33:03.019> camera<00:33:03.824> a<00:33:03.904> hidden<00:33:04.147> camera<00:33:05.748> and<00:33:05.910> ask<00:33:06.169> questions.

00:33:06.719 --> 00:33:08.481
And<00:33:06.994> it's<00:33:07.220> got<00:33:07.382> some<00:33:07.608> great<00:33:07.883> stuff<00:33:08.271> hidden.

00:33:08.595 --> 00:33:15.610
So,<00:33:09.064> you<00:33:09.096> know,<00:33:09.225> like<00:33:09.322> going<00:33:09.565> through<00:33:09.630> a<00:33:09.662> drive-through<00:33:10.131> window<00:33:10.535> and<00:33:10.681> asking<00:33:11.101> for<00:33:11.198> a<00:33:11.263> certain<00:33:11.668> product,<00:33:12.942> and<00:33:13.087> the<00:33:13.168> employee<00:33:13.653> would<00:33:13.750> say,<00:33:13.977> you'll<00:33:14.155> have<00:33:14.300> to<00:33:14.397> go<00:33:14.640> to<00:33:14.721> Sonic<00:33:15.125> to<00:33:15.206> get<00:33:15.432> that.

00:33:15.691 --> 00:33:18.860
Like,<00:33:16.418> wham,<00:33:17.065> thank<00:33:17.405> you,<00:33:18.262> you<00:33:18.537> know.

00:33:20.040 --> 00:33:21.399
So<00:33:20.364> that's<00:33:20.687> what<00:33:20.784> we<00:33:20.865> did<00:33:21.091> initially.

00:33:22.170 --> 00:33:35.455
But,<00:33:22.913> um,<00:33:23.188> uh,<00:33:24.466> one,<00:33:24.935> it<00:33:25.016> was<00:33:25.582> physically<00:33:26.002> challenging<00:33:26.649> for<00:33:26.811> them<00:33:26.973> to<00:33:27.135> do<00:33:27.361> that,<00:33:28.008> and<00:33:28.509> two<00:33:29.462> And<00:33:29.606> that,<00:33:29.863> so<00:33:30.167> for<00:33:30.327> every<00:33:31.625> however<00:33:31.946> much<00:33:32.170> time<00:33:32.571> put<00:33:32.747> in,<00:33:33.532> you<00:33:33.612> only<00:33:33.724> got<00:33:33.949> so<00:33:34.109> many<00:33:34.333> commercials,<00:33:34.910> et<00:33:35.006> cetera.

00:33:35.856 --> 00:33:40.230
And<00:33:35.968> I<00:33:36.016> say<00:33:36.256> that<00:33:36.513> to<00:33:36.673> say,<00:33:37.138> once<00:33:37.378> we<00:33:37.474> started<00:33:37.795> filming<00:33:38.179> on<00:33:38.339> lot,<00:33:39.221> you<00:33:39.253> know,<00:33:39.413> it<00:33:39.557> was<00:33:39.621> unbelievable.

00:33:40.278 --> 00:33:46.143
They'd<00:33:40.519> film<00:33:40.903> for<00:33:41.160> 3<00:33:41.464> days<00:33:41.881> and<00:33:42.025> they'd<00:33:42.185> come<00:33:42.362> up<00:33:42.506> with<00:33:42.762> months<00:33:43.307> of<00:33:43.467> commercials,<00:33:44.925> you<00:33:45.022> know,<00:33:45.246> just<00:33:45.486> right<00:33:45.727> there.

00:33:47.313 --> 00:33:51.015
And<00:33:47.586> so<00:33:47.730> it<00:33:49.060> was<00:33:49.332> enormously<00:33:50.454> efficient.

00:33:52.136 --> 00:33:57.970
Just<00:33:52.297> get<00:33:52.537> them<00:33:52.633> to<00:33:52.858> change<00:33:53.242> clothes,<00:33:53.643> change<00:33:53.963> products,<00:33:54.604> and,<00:33:54.925> you<00:33:55.021> know,<00:33:55.824> keep<00:33:56.050> going,<00:33:56.550> you<00:33:56.647> know,<00:33:57.422> on<00:33:57.518> the<00:33:57.663> filming.

00:33:58.712 --> 00:34:04.681
At<00:33:58.793> any<00:33:58.970> rate,<00:34:00.245> how<00:34:00.422> we<00:34:00.503> came<00:34:00.745> up<00:34:00.906> with<00:34:01.084> it<00:34:01.213> was<00:34:01.390> trying<00:34:01.874> that<00:34:02.342> and<00:34:02.664> it<00:34:02.923> seemed<00:34:03.245> to<00:34:03.487> help,<00:34:03.907> seemed<00:34:04.084> to<00:34:04.197> break<00:34:04.439> through.

00:34:05.165 --> 00:34:12.654
It<00:34:05.230> did<00:34:05.406> coincide<00:34:06.290> with<00:34:06.531> us<00:34:06.708> beginning<00:34:07.174> to<00:34:07.415> move<00:34:08.861> advertising<00:34:10.629> to<00:34:12.011> more<00:34:12.252> cable.

00:34:13.200 --> 00:34:16.080
It<00:34:13.377> was<00:34:14.502> very<00:34:14.824> difficult<00:34:15.372> with<00:34:15.452> our<00:34:15.533> operators.

00:34:16.338 --> 00:34:24.065
They<00:34:16.498> were<00:34:16.820> very<00:34:19.799> controlling<00:34:20.394> about<00:34:20.604> their<00:34:20.781> local<00:34:21.183> co-op<00:34:21.586> expenditures<00:34:22.391> because<00:34:22.552> we<00:34:22.713> did<00:34:22.874> marketing<00:34:23.357> by<00:34:23.518> co-op.

00:34:24.408 --> 00:34:27.011
Which<00:34:24.570> was<00:34:24.731> the<00:34:24.828> television<00:34:25.394> market.

00:34:29.339 --> 00:34:33.493
And<00:34:29.452> so<00:34:31.521> that's<00:34:31.844> another<00:34:32.264> story<00:34:32.749> unto<00:34:32.976> itself.

00:34:33.865 --> 00:34:49.100
But<00:34:33.930> they<00:34:34.122> did<00:34:34.364> come<00:34:34.605> to<00:34:34.749> a<00:34:34.782> point<00:34:35.232> because<00:34:35.505> of<00:34:35.569> an<00:34:35.666> experience<00:34:36.196> we<00:34:36.309> had<00:34:36.855> where<00:34:37.081> we<00:34:37.257> coincidentally,<00:34:38.383> and<00:34:38.528> that's<00:34:39.042> a<00:34:39.106> great<00:34:39.347> story,<00:34:40.232> we<00:34:40.376> coincidentally<00:34:41.437> got<00:34:41.679> some<00:34:41.920> cable<00:34:42.322> advertising<00:34:43.290> nationally<00:34:44.743> and<00:34:44.888> all<00:34:45.146> these<00:34:45.388> guys<00:34:45.647> saw<00:34:45.953> our<00:34:46.260> brand<00:34:47.083> on<00:34:47.244> a<00:34:47.406> NASCAR<00:34:48.051> race<00:34:48.455> one<00:34:48.681> weekend.

00:34:50.336 --> 00:34:53.256
And<00:34:50.416> they<00:34:50.577> came<00:34:50.737> in<00:34:50.817> and<00:34:50.978> they<00:34:51.074> said,<00:34:51.299> really,<00:34:51.700> they<00:34:51.796> said,<00:34:52.101> how<00:34:52.277> can<00:34:52.438> we<00:34:52.582> get<00:34:52.823> more<00:34:52.983> of<00:34:53.079> that?

00:34:53.801 --> 00:34:58.437
And<00:34:53.881> we<00:34:54.026> said,<00:34:54.266> well,<00:34:54.427> let's<00:34:54.828> take—<00:34:55.470> we're<00:34:55.742> spending<00:34:56.913> 3<00:34:57.154> points<00:34:57.651> total,<00:34:58.133> 3%.

00:34:58.550 --> 00:35:03.362
Let's<00:34:59.977> take<00:35:00.138> a<00:35:00.218> half<00:35:00.459> point<00:35:00.603> and<00:35:00.780> put<00:35:01.004> it<00:35:01.100> into<00:35:01.646> a<00:35:03.186> fund.

00:35:03.507 --> 00:35:11.191
We<00:35:03.747> just<00:35:04.854> called<00:35:05.095> it<00:35:05.191> that,<00:35:05.448> a<00:35:05.656> fund<00:35:06.715> that<00:35:06.940> will<00:35:07.116> buy,<00:35:08.143> you<00:35:09.362> know,<00:35:09.538> system-wide<00:35:10.228> rights<00:35:10.709> to<00:35:10.870> cable.

00:35:12.634 --> 00:35:13.870
And<00:35:12.731> they<00:35:12.811> were,<00:35:13.276> yeah.

00:35:14.014 --> 00:35:16.228
So<00:35:14.175> we<00:35:14.255> started<00:35:14.576> doing<00:35:15.041> college<00:35:15.458> football<00:35:15.859> and<00:35:15.955> so<00:35:16.100> on.

00:35:17.208 --> 00:35:31.503
And<00:35:17.305> of<00:35:17.369> course,<00:35:17.690> it<00:35:18.011> was<00:35:18.108> like<00:35:18.284> a<00:35:18.429> drug,<00:35:18.911> you<00:35:18.991> know,<00:35:19.136> because<00:35:20.292> it<00:35:20.421> had<00:35:20.613> a<00:35:20.758> big<00:35:20.983> impact<00:35:21.545> on<00:35:21.882> sales<00:35:22.428> and<00:35:22.525> people<00:35:22.926> loved—<00:35:23.167> they've<00:35:24.452> been<00:35:24.597> seeing<00:35:24.838> their<00:35:24.934> local<00:35:25.319> commercials<00:35:25.737> for<00:35:25.898> years,<00:35:26.203> but<00:35:26.379> now<00:35:26.926> they're<00:35:27.038> seeing<00:35:27.423> it<00:35:27.568> on<00:35:28.532> college<00:35:28.949> football,<00:35:29.752> you<00:35:29.833> know,<00:35:30.555> Southeast<00:35:31.037> Conference.

00:35:31.760 --> 00:35:32.579
Yeah.

00:35:32.788 --> 00:35:42.296
And<00:35:33.302> so<00:35:33.752> that<00:35:33.928> was<00:35:34.105> a<00:35:34.169> nice<00:35:34.555> play<00:35:34.892> because<00:35:36.402> we<00:35:36.498> took<00:35:36.755> it<00:35:37.221> from<00:35:37.366> 0.5%<00:35:38.104> to<00:35:38.329> 1%<00:35:39.775> and<00:35:40.176> they<00:35:40.273> started<00:35:40.578> stepping<00:35:40.915> up<00:35:41.076> their<00:35:41.236> local<00:35:41.622> expenditures.

00:35:42.682 --> 00:35:48.874
To<00:35:42.826> the<00:35:42.922> point<00:35:43.243> that<00:35:43.404> in<00:35:43.516> '04,<00:35:44.430> I<00:35:44.671> think<00:35:44.912> we<00:35:45.008> took<00:35:45.249> it<00:35:45.409> to<00:35:46.035> 2%<00:35:46.676> on<00:35:46.853> cable<00:35:47.414> and<00:35:47.575> 2%<00:35:48.457> local.

00:35:49.500 --> 00:35:55.131
So<00:35:49.660> this,<00:35:50.286> this<00:35:50.543> helped<00:35:50.799> a<00:35:50.928> lot<00:35:51.264> because<00:35:52.387> it<00:35:52.468> started<00:35:53.029> getting<00:35:53.815> a<00:35:53.895> lot<00:35:54.056> more<00:35:54.216> advertising<00:35:54.858> out<00:35:55.034> there.

00:35:55.211 --> 00:36:02.013
So<00:35:55.419> here<00:35:55.580> we<00:35:55.740> were<00:35:56.238> bringing<00:35:56.623> on<00:35:56.799> the<00:35:56.959> two<00:35:57.184> guys<00:35:57.681> and<00:35:57.826> refining<00:35:58.323> that<00:35:58.628> whole<00:35:58.949> thing<00:35:59.687> at<00:35:59.751> the<00:35:59.847> same<00:36:00.152> time<00:36:00.392> that<00:36:00.473> our<00:36:00.585> marketing<00:36:00.986> expenditures<00:36:01.596> were<00:36:01.692> growing.

00:36:02.414 --> 00:36:09.858
We<00:36:02.558> hit<00:36:02.815> $3<00:36:03.136> billion<00:36:03.457> in<00:36:03.601> sales<00:36:04.098> in<00:36:04.130> '05,<00:36:06.328> and<00:36:06.424> I<00:36:06.505> think<00:36:06.665> we<00:36:06.761> were<00:36:06.890> probably<00:36:07.146> doing<00:36:07.547> 4%<00:36:08.093> in<00:36:09.457> marketing.

00:36:10.416 --> 00:36:25.610
So<00:36:10.436> that<00:36:10.677> means<00:36:10.982> by<00:36:11.111> '05,<00:36:11.801> we<00:36:11.945> had<00:36:12.122> grown<00:36:13.150> from<00:36:13.728> in<00:36:13.872> '97,<00:36:14.771> let's<00:36:14.964> say<00:36:15.093> $25<00:36:15.574> million<00:36:15.879> of<00:36:15.976> marketing,<00:36:16.811> '05,<00:36:18.368> 3%<00:36:18.529> of<00:36:18.786> 3—<00:36:18.946> 4%<00:36:19.251> of<00:36:19.348> $3<00:36:19.572> billion,<00:36:20.455> $120<00:36:22.318> million,<00:36:22.703> $120<00:36:23.619> million<00:36:24.951> of<00:36:25.208> marketing.

00:36:25.722 --> 00:36:30.314
So<00:36:26.236> it'd<00:36:26.316> gone<00:36:26.557> up<00:36:26.718> almost<00:36:27.055> 5<00:36:27.376> times<00:36:27.938> in<00:36:28.082> that<00:36:28.403> 8<00:36:28.580> years<00:36:29.218> in<00:36:29.238> terms<00:36:29.447> of<00:36:29.527> the<00:36:29.624> amount<00:36:29.881> of<00:36:29.945> marketing.

00:36:30.828 --> 00:36:34.360
So<00:36:31.454> all<00:36:31.567> of<00:36:31.711> this,<00:36:32.980> yes,<00:36:33.301> how<00:36:33.477> did<00:36:33.558> you<00:36:33.718> get<00:36:33.863> the<00:36:33.959> momentum?

00:36:34.650 --> 00:36:49.160
You<00:36:34.651> know,<00:36:35.490> okay,<00:36:35.730> with<00:36:35.830> the<00:36:35.930> retrofit<00:36:36.510> in<00:36:36.790> the<00:36:37.530> late<00:36:37.770> '90s<00:36:38.490> and<00:36:38.610> then,<00:36:39.010> you<00:36:39.290> know,<00:36:39.470> the<00:36:39.690> new<00:36:39.870> products<00:36:40.370> and<00:36:40.590> then<00:36:40.790> the<00:36:40.910> new<00:36:41.110> ad<00:36:41.350> campaign<00:36:41.810> and<00:36:42.010> now<00:36:42.590> getting<00:36:43.150> the<00:36:43.410> word<00:36:43.570> out<00:36:43.770> just<00:36:43.930> a<00:36:44.270> whole<00:36:44.370> lot<00:36:44.630> more,<00:36:45.610> '02,<00:36:45.970> '03,<00:36:46.410> '04,<00:36:47.170> with<00:36:47.390> the<00:36:47.530> shift<00:36:47.870> to<00:36:48.310> cable.

00:36:49.250 --> 00:36:54.090
So<00:36:49.610> these<00:36:50.110> things,<00:36:50.510> they<00:36:51.070> all<00:36:51.230> feed<00:36:51.490> on<00:36:51.730> themselves,<00:36:52.430> you<00:36:52.690> know.

00:36:54.090 --> 00:36:58.130
I<00:36:54.850> keep<00:36:55.130> talking<00:36:55.570> because<00:36:55.910> there<00:36:56.450> were<00:36:56.570> a<00:36:56.610> couple<00:36:56.810> of<00:36:57.030> things<00:36:57.070> that<00:36:57.330> happened<00:36:57.630> in<00:36:57.910> there.

00:36:58.130 --> 00:37:00.040
No,<00:36:58.390> yeah,<00:36:58.650> yeah,<00:36:58.990> it's<00:36:59.170> super<00:36:59.390> valuable.

00:37:00.050 --> 00:37:02.290
Okay,<00:37:00.110> well,<00:37:00.190> here's<00:37:00.350> one<00:37:00.530> of<00:37:00.690> the<00:37:00.691> things<00:37:00.890> then<00:37:01.130> in<00:37:01.230> that<00:37:01.410> same<00:37:01.730> time<00:37:02.010> frame.

00:37:02.290 --> 00:37:07.778
So<00:37:02.490> now<00:37:02.650> we're<00:37:02.770> going<00:37:02.930> out<00:37:03.130> more<00:37:03.350> cable,<00:37:04.290> And<00:37:04.404> now<00:37:04.863> we<00:37:05.010> are<00:37:05.109> getting—<00:37:05.665> our<00:37:06.009> reach<00:37:06.337> is<00:37:06.500> much<00:37:06.746> better<00:37:06.975> with<00:37:07.221> advertising.

00:37:09.580 --> 00:37:11.933
Franchisees<00:37:10.034> are<00:37:10.099> making<00:37:10.342> so<00:37:10.488> much<00:37:10.651> money,<00:37:10.846> they're<00:37:10.992> opening<00:37:11.251> more<00:37:11.414> stores.

00:37:12.923 --> 00:37:15.845
And<00:37:13.410> the<00:37:13.507> two<00:37:13.686> guys<00:37:14.075> that<00:37:14.157> are<00:37:14.238> coming<00:37:14.708> on,<00:37:15.114> they're<00:37:15.309> real<00:37:15.455> popular.

00:37:18.476 --> 00:37:22.341
I,<00:37:19.058> in<00:37:19.220> the—<00:37:19.770> oh,<00:37:20.416> let's<00:37:20.578> just<00:37:20.756> say<00:37:20.837> '01,<00:37:21.565> just<00:37:21.726> say<00:37:21.840> '01.

00:37:23.004 --> 00:37:30.819
I<00:37:23.020> went<00:37:23.182> to<00:37:23.263> a<00:37:23.586> program<00:37:24.314> for<00:37:24.476> CEOs<00:37:25.268> in<00:37:26.400> Chicago<00:37:26.902> sponsored<00:37:27.539> by,<00:37:28.534> I<00:37:28.697> think,<00:37:28.926> Nation's<00:37:29.350> Restaurant<00:37:29.758> News<00:37:30.166> and<00:37:30.411> Visa.

00:37:31.949 --> 00:37:38.986
And<00:37:32.238> it<00:37:32.318> was<00:37:32.494> a<00:37:32.671> small<00:37:33.216> conference<00:37:34.001> and,<00:37:34.338> and,<00:37:34.899> and<00:37:35.139> Nation's<00:37:35.444> Restaurant<00:37:35.780> News<00:37:36.101> wanted<00:37:36.277> to<00:37:36.341> do<00:37:36.582> interview<00:37:36.886> and<00:37:36.935> then<00:37:37.704> publish<00:37:38.089> this<00:37:38.345> in<00:37:38.425> their<00:37:38.521> magazine.

00:37:39.547 --> 00:37:47.803
It<00:37:39.612> was<00:37:39.772> a<00:37:40.092> pretty<00:37:40.734> cost-efficient<00:37:41.295> way<00:37:41.471> for<00:37:41.631> them<00:37:41.808> to<00:37:41.952> get<00:37:42.850> everybody<00:37:43.170> in<00:37:43.218> one<00:37:43.395> room,<00:37:43.699> ask<00:37:43.859> a<00:37:43.875> bunch<00:37:44.132> of<00:37:44.180> questions,<00:37:44.613> and<00:37:44.677> they<00:37:44.757> end<00:37:44.933> up<00:37:45.398> doing<00:37:45.703> 12<00:37:46.023> pieces<00:37:46.440> from<00:37:46.617> it<00:37:46.761> in<00:37:46.841> their<00:37:47.001> magazine,<00:37:47.642> you<00:37:47.723> know.

00:37:48.781 --> 00:37:56.796
So<00:37:49.326> the,<00:37:49.630> at<00:37:50.127> halfway<00:37:50.592> through<00:37:50.768> the<00:37:50.848> day,<00:37:51.794> we<00:37:51.874> had<00:37:51.971> to<00:37:52.115> listen<00:37:52.371> to<00:37:52.451> a<00:37:52.596> Visa<00:37:52.932> commercial,<00:37:54.038> you<00:37:54.070> know,<00:37:55.016> and<00:37:55.096> that<00:37:55.241> was<00:37:55.481> a<00:37:55.657> live<00:37:55.898> person<00:37:56.299> standing<00:37:56.699> there.

00:37:57.084 --> 00:38:00.654
She<00:37:57.260> says<00:37:59.920> I'm<00:38:00.067> going<00:38:00.181> to<00:38:00.230> say<00:38:00.393> this<00:38:00.556> to<00:38:00.605> you.

00:38:00.784 --> 00:38:01.453
You're<00:38:00.882> going<00:38:01.045> to<00:38:01.111> say,<00:38:01.372> duh.

00:38:02.513 --> 00:38:05.286
But<00:38:02.823> mind<00:38:04.046> you,<00:38:04.144> this<00:38:04.356> was<00:38:04.470> 20<00:38:04.780> years<00:38:05.107> ago.

00:38:06.487 --> 00:38:06.507
Okay.

00:38:06.507 --> 00:38:06.588
Yeah.

00:38:06.815 --> 00:38:22.769
And<00:38:06.912> she<00:38:07.091> says<00:38:10.463> restaurants<00:38:11.192> that<00:38:11.354> accept<00:38:11.921> credit<00:38:12.327> cards<00:38:15.621> are<00:38:15.943> more<00:38:16.184> than<00:38:16.345> twice<00:38:16.764> as<00:38:16.989> likely<00:38:17.649> to<00:38:17.875> get<00:38:18.293> mom<00:38:18.776> to<00:38:18.873> stop<00:38:19.485> on<00:38:19.581> the<00:38:20.209> way<00:38:20.370> home<00:38:20.612> from<00:38:20.934> work<00:38:21.513> to<00:38:21.658> grab<00:38:22.157> food<00:38:22.463> for<00:38:22.544> dinner.

00:38:24.070 --> 00:38:26.884
As<00:38:24.234> a<00:38:24.316> restaurant<00:38:24.725> that<00:38:24.905> doesn't<00:38:25.395> accept<00:38:25.968> credit<00:38:26.295> cards.

00:38:28.520 --> 00:38:34.980
Okay,<00:38:28.793> well,<00:38:28.953> 20<00:38:29.259> years<00:38:29.500> later,<00:38:29.741> it's<00:38:29.902> like,<00:38:30.560> yeah,<00:38:32.087> but<00:38:32.907> it<00:38:33.293> was<00:38:33.598> a<00:38:33.855> different<00:38:34.176> time,<00:38:34.803> you<00:38:34.835> know?

00:38:36.426 --> 00:38:36.748
Sure.

00:38:37.133 --> 00:38:40.987
And<00:38:37.230> so<00:38:38.100> I<00:38:38.180> left<00:38:38.503> there<00:38:38.745> thinking,<00:38:39.309> well,<00:38:39.471> we<00:38:39.648> accept<00:38:40.116> credit<00:38:40.374> cards.

00:38:42.713 --> 00:38:47.977
And<00:38:42.778> then<00:38:42.955> I<00:38:43.100> thought—<00:38:43.681> and<00:38:44.488> this<00:38:44.713> too,<00:38:44.891> today<00:38:45.552> it<00:38:45.697> sounds<00:38:46.020> horrible—<00:38:46.423> but<00:38:47.149> I<00:38:47.294> thought,<00:38:47.440> but<00:38:47.553> wait<00:38:47.732> a<00:38:47.798> minute.

00:38:48.042 --> 00:38:53.314
Yeah,<00:38:48.269> we<00:38:48.432> accept<00:38:48.693> credit<00:38:49.002> cards<00:38:49.262> and<00:38:49.327> you<00:38:49.409> have<00:38:49.539> to<00:38:49.653> hand<00:38:49.913> your<00:38:50.060> credit<00:38:50.320> card<00:38:50.548> over<00:38:50.808> to<00:38:50.890> a<00:38:51.036> carhop<00:38:51.541> to<00:38:51.703> take<00:38:51.882> it<00:38:52.029> inside,<00:38:52.663> run<00:38:52.859> it,<00:38:53.005> and<00:38:53.087> bring<00:38:53.184> it<00:38:53.249> back.

00:38:54.465 --> 00:39:00.295
So<00:38:55.337> here<00:38:55.579> we<00:38:55.757> are<00:38:55.983> doing<00:38:56.888> 5%<00:38:57.194> of<00:38:57.356> our<00:38:57.695> sales<00:38:58.180> in<00:38:58.277> credit<00:38:58.567> cards,<00:38:58.906> 95%<00:38:59.633> in<00:39:00.118> cash.

00:39:01.975 --> 00:39:03.558
So<00:39:02.040> I<00:39:02.137> thought,<00:39:02.363> well,<00:39:02.524> no,<00:39:02.944> no,<00:39:03.170> really?

00:39:03.655 --> 00:39:05.616
No<00:39:03.720> wonder<00:39:04.379> people<00:39:04.636> don't<00:39:04.861> want<00:39:04.941> to<00:39:05.022> use<00:39:05.198> a<00:39:05.279> credit<00:39:05.504> card.

00:39:05.681 --> 00:39:07.272
They<00:39:05.825> got<00:39:06.002> to<00:39:06.050> turn<00:39:06.308> loose<00:39:06.565> of<00:39:06.742> it,<00:39:07.111> you<00:39:07.144> know.

00:39:08.494 --> 00:39:19.426
But<00:39:08.639> in<00:39:08.735> fact,<00:39:09.057> what<00:39:09.217> we<00:39:09.378> had<00:39:09.619> was<00:39:09.796> a<00:39:09.925> younger<00:39:10.262> population<00:39:11.130> coming<00:39:11.468> on<00:39:12.580> that<00:39:13.164> used<00:39:13.408> credit<00:39:13.651> cards<00:39:14.040> all<00:39:14.121> the<00:39:14.219> time,<00:39:14.543> but<00:39:14.705> they<00:39:14.867> just<00:39:15.095> weren't<00:39:15.338> the<00:39:15.435> primary<00:39:16.652> buyers<00:39:17.236> at<00:39:17.382> that<00:39:17.625> point,<00:39:18.112> meaning<00:39:18.680> 20<00:39:18.939> years<00:39:19.264> ago.

00:39:20.337 --> 00:39:29.154
You<00:39:20.385> know,<00:39:20.593> my<00:39:20.754> kid,<00:39:22.052> my<00:39:22.196> both<00:39:22.357> my<00:39:22.517> sons<00:39:22.774> are<00:39:22.854> in<00:39:23.158> their<00:39:23.238> 30s,<00:39:24.345> you<00:39:24.377> know,<00:39:24.681> so<00:39:24.842> 20<00:39:25.146> years<00:39:25.403> ago<00:39:25.723> they<00:39:26.268> were<00:39:26.381> early<00:39:26.605> teens,<00:39:27.166> they<00:39:27.246> weren't<00:39:27.423> using<00:39:27.711> credit<00:39:27.968> cards,<00:39:28.208> but<00:39:28.288> now<00:39:28.449> that's<00:39:28.753> all<00:39:28.865> they<00:39:29.090> do.

00:39:29.234 --> 00:39:30.709
They<00:39:29.330> don't<00:39:29.635> carry<00:39:29.891> cash,<00:39:30.533> you<00:39:30.613> know.

00:39:31.479 --> 00:39:37.298
Anyway,<00:39:31.975> so,<00:39:32.793> so,<00:39:34.444> um,<00:39:35.727> what,<00:39:36.144> what<00:39:36.400> seemed<00:39:36.625> to<00:39:36.705> be<00:39:36.865> the<00:39:36.945> solution?

00:39:37.346 --> 00:39:39.013
Well,<00:39:37.458> the<00:39:37.506> solution<00:39:37.907> was<00:39:38.228> the<00:39:38.308> way<00:39:38.452> you<00:39:38.532> get<00:39:38.709> gas.

00:39:40.151 --> 00:39:43.117
You<00:39:40.296> pull<00:39:40.616> up<00:39:40.793> and<00:39:41.177> you<00:39:41.354> pay<00:39:41.578> at<00:39:41.658> the<00:39:41.739> pump<00:39:42.091> and<00:39:42.219> you<00:39:42.268> don't<00:39:42.396> have<00:39:42.476> to<00:39:42.620> go<00:39:42.700> inside.

00:39:43.181 --> 00:39:44.287
Enormously<00:39:43.742> convenient.

00:39:44.384 --> 00:39:45.265
You're<00:39:44.544> there<00:39:44.720> and<00:39:44.784> you're<00:39:44.881> gone.

00:39:46.374 --> 00:39:51.793
And<00:39:47.136> so<00:39:48.110> I<00:39:48.256> thought,<00:39:48.564> well,<00:39:49.051> heck,<00:39:49.310> we<00:39:49.456> got<00:39:50.024> the<00:39:50.122> counterpart<00:39:50.689> in<00:39:50.917> every<00:39:51.095> parking<00:39:51.501> stall.

00:39:52.782 --> 00:40:10.281
And<00:39:52.846> so<00:39:54.219> it<00:39:54.558> was<00:39:54.817> a<00:39:55.188> little<00:39:55.447> bit<00:39:55.608> more<00:39:55.834> arduous<00:39:56.400> than<00:39:56.497> this,<00:39:56.981> but<00:39:57.304> the<00:39:57.449> point<00:39:57.772> is<00:39:58.838> I<00:39:58.919> got<00:39:59.097> our<00:39:59.549> guy<00:39:59.969> in<00:40:00.050> our<00:40:00.211> tech<00:40:00.405> group<00:40:01.744> to<00:40:02.469> build<00:40:03.516> that<00:40:04.579> attachment<00:40:07.140> that<00:40:07.285> he<00:40:07.382> could<00:40:07.607> literally<00:40:08.751> stick<00:40:09.137> onto<00:40:09.475> the<00:40:09.701> menu<00:40:10.039> housing.

00:40:11.118 --> 00:40:19.331
So<00:40:11.199> when<00:40:11.312> you<00:40:11.442> pulled<00:40:11.797> into<00:40:11.975> the<00:40:12.040> store,<00:40:12.428> if<00:40:12.525> you<00:40:12.573> want<00:40:12.751> to<00:40:12.816> pay<00:40:12.913> by<00:40:13.058> credit<00:40:13.301> card,<00:40:14.044> you<00:40:14.190> could<00:40:14.352> use,<00:40:14.853> use<00:40:15.095> the,<00:40:15.483> you<00:40:15.742> know,<00:40:16.534> you<00:40:16.873> could<00:40:16.954> pay<00:40:17.181> at<00:40:17.262> the<00:40:17.359> pump,<00:40:18.167> you<00:40:18.248> know,<00:40:18.878> you<00:40:18.959> could<00:40:19.040> do<00:40:19.282> it.

00:40:19.379 --> 00:40:21.583
You<00:40:19.622> could<00:40:19.703> never—<00:40:20.188> you<00:40:20.268> didn't<00:40:20.479> have<00:40:20.560> to<00:40:20.625> turn<00:40:20.755> loose<00:40:20.998> your<00:40:21.226> card.

00:40:22.363 --> 00:40:23.615
You<00:40:22.526> could<00:40:22.623> pay<00:40:22.867> for<00:40:23.095> it<00:40:23.176> and<00:40:23.338> boom.

00:40:25.213 --> 00:40:27.895
And<00:40:25.360> so<00:40:26.578> we<00:40:27.326> did<00:40:27.570> that.

00:40:27.960 --> 00:40:29.487
And<00:40:28.626> two<00:40:28.853> things<00:40:29.113> happened.

00:40:33.367 --> 00:40:35.474
One,<00:40:33.874> our<00:40:33.939> average<00:40:34.200> check<00:40:34.429> at<00:40:34.511> that<00:40:34.674> time<00:40:34.854> was<00:40:35.017> $5.

00:40:36.324 --> 00:40:38.545
When<00:40:36.487> people<00:40:36.667> use<00:40:36.912> a<00:40:37.042> credit<00:40:37.238> card,<00:40:37.533> the<00:40:37.614> average<00:40:37.794> check<00:40:38.120> was<00:40:38.219> $7.

00:40:40.361 --> 00:40:53.490
So<00:40:40.522> a<00:40:40.603> 40%<00:40:41.443> increase<00:40:42.719> in<00:40:42.881> average<00:40:45.449> ticket<00:40:46.595> size<00:40:47.064> when<00:40:49.260> we<00:40:51.436> made<00:40:51.614> that<00:40:51.841> credit<00:40:52.067> card<00:40:52.310> reader<00:40:52.568> available<00:40:53.038> at<00:40:53.070> the<00:40:53.151> stall.

00:40:54.509 --> 00:40:55.690
What<00:40:54.671> else<00:40:55.383> happened?

00:40:55.803 --> 00:41:02.549
The<00:40:55.965> franchisees,<00:40:57.340> the<00:40:57.486> payback<00:40:57.971> was<00:40:58.084> so<00:40:58.375> fast<00:40:58.731> on<00:40:58.860> this<00:40:59.038> thing<00:41:00.090> that<00:41:00.333> we<00:41:00.365> thought<00:41:00.640> we<00:41:01.061> were<00:41:01.223> gonna<00:41:01.352> have<00:41:01.417> to<00:41:01.708> force<00:41:02.032> it<00:41:02.112> on<00:41:02.274> people.

00:41:02.598 --> 00:41:04.960
They<00:41:02.679> have<00:41:02.824> people,<00:41:03.326> can<00:41:03.472> we<00:41:03.569> put<00:41:03.827> it<00:41:03.957> in<00:41:04.216> every<00:41:04.458> other<00:41:04.701> stall?

00:41:05.348 --> 00:41:06.416
Can<00:41:05.510> we<00:41:05.672> do<00:41:05.898> this<00:41:06.076> and<00:41:06.238> such?

00:41:07.008 --> 00:41:12.845
And<00:41:07.169> the<00:41:07.346> answer<00:41:07.653> was<00:41:07.911> it<00:41:08.056> was<00:41:08.153> rolled<00:41:08.459> out<00:41:08.556> across<00:41:08.862> the<00:41:08.959> whole<00:41:09.185> system<00:41:09.604> in<00:41:09.685> 18<00:41:10.072> months<00:41:11.200> and<00:41:11.458> the<00:41:11.539> payback<00:41:12.104> was<00:41:12.281> enormous.

00:41:14.650 --> 00:41:25.331
I<00:41:14.666> told<00:41:14.941> you<00:41:15.022> a<00:41:15.087> few<00:41:15.249> minutes<00:41:15.508> ago,<00:41:16.123> at<00:41:16.221> the<00:41:16.366> time<00:41:16.690> I<00:41:16.771> went<00:41:16.869> to<00:41:16.950> Chicago<00:41:18.650> to<00:41:18.748> listen<00:41:19.136> to<00:41:19.217> that<00:41:19.331> thing,<00:41:19.703> I<00:41:19.784> told<00:41:20.027> you<00:41:20.092> in<00:41:20.141> '01,<00:41:20.821> that<00:41:20.902> was<00:41:21.064> when<00:41:21.161> I<00:41:21.242> went,<00:41:21.517> '01,<00:41:22.036> our<00:41:22.133> system-wide<00:41:22.619> sales<00:41:22.925> hit<00:41:23.184> $2<00:41:23.426> billion,<00:41:23.910> $2<00:41:24.152> billion,<00:41:24.782> $2<00:41:24.960> billion.

00:41:26.009 --> 00:41:28.689
And<00:41:26.235> 5%<00:41:26.720> of<00:41:26.816> that<00:41:26.978> was<00:41:27.204> credit<00:41:27.446> cards,<00:41:28.350> 5%.

00:41:28.754 --> 00:41:31.596
That,<00:41:29.480> that<00:41:29.803> means<00:41:30.029> $100<00:41:30.368> million<00:41:30.837> was<00:41:31.014> credit<00:41:31.256> cards.

00:41:32.456 --> 00:41:32.985
Is<00:41:32.697> that<00:41:32.857> right?

00:41:33.114 --> 00:41:34.093
Yeah,<00:41:33.354> that's<00:41:33.980> right.

00:41:34.157 --> 00:41:35.408
$100<00:41:34.590> million<00:41:34.798> was<00:41:34.959> credit<00:41:35.200> cards.

00:41:35.681 --> 00:41:37.751
$1.9<00:41:36.226> billion<00:41:36.868> was<00:41:37.109> cash.

00:41:38.152 --> 00:41:38.505
Okay.

00:41:39.836 --> 00:41:42.548
18<00:41:40.157> years<00:41:40.398> later,<00:41:40.671> 17<00:41:41.200> years<00:41:41.361> later,<00:41:41.601> we<00:41:41.698> sold<00:41:42.083> the<00:41:42.179> company.

00:41:43.543 --> 00:41:45.917
System-wide<00:41:44.024> sales<00:41:44.345> were<00:41:44.489> $2.5<00:41:45.468> billion.

00:41:47.377 --> 00:41:55.223
Cash<00:41:49.174> at<00:41:49.319> that<00:41:49.543> point<00:41:50.041> was<00:41:50.282> $2<00:41:50.522> billion<00:41:51.790> and<00:41:51.886> credit<00:41:52.207> cards<00:41:52.608> were<00:41:52.784> $2.5<00:41:54.116> billion<00:41:54.774> in<00:41:54.934> sales.

00:41:55.897 --> 00:42:02.113
So<00:41:56.202> virtually<00:41:56.844> 100%<00:41:58.063> of<00:41:58.208> the<00:41:58.448> incremental<00:41:59.299> sales<00:41:59.507> over<00:41:59.892> the<00:41:59.924> next<00:42:00.213> 17<00:42:00.775> years<00:42:01.358> were<00:42:01.506> credit<00:42:01.768> cards.

00:42:03.985 --> 00:42:05.099
So<00:42:04.178> that's<00:42:04.501> incredible.

00:42:05.163 --> 00:42:09.344
That<00:42:05.389> was<00:42:05.631> a,<00:42:06.616> that<00:42:06.777> was<00:42:06.955> a<00:42:07.100> total<00:42:07.504> gimme,<00:42:09.021> you<00:42:09.053> know.

00:42:10.183 --> 00:42:13.089
I<00:42:10.264> mean,<00:42:10.554> that<00:42:10.667> was—<00:42:11.458> the<00:42:11.539> service<00:42:11.878> stations<00:42:12.265> were<00:42:12.346> already<00:42:12.733> using<00:42:12.992> it.

00:42:13.784 --> 00:42:22.937
And<00:42:14.124> but<00:42:14.269> the<00:42:14.366> convenience,<00:42:15.563> you<00:42:15.644> know,<00:42:15.822> for<00:42:15.983> the<00:42:16.064> customer,<00:42:16.857> the<00:42:17.035> safety,<00:42:18.571> and<00:42:18.652> then<00:42:18.894> the<00:42:19.444> ease<00:42:19.945> for<00:42:20.042> the<00:42:20.172> operator<00:42:20.673> not<00:42:20.835> having<00:42:20.996> to<00:42:21.061> make<00:42:21.320> cash<00:42:21.870> change,<00:42:22.371> you<00:42:22.420> know,<00:42:22.597> etc.

00:42:23.324 --> 00:42:26.475
Less<00:42:23.567> pilferage,<00:42:24.294> you<00:42:24.374> know,<00:42:25.263> less<00:42:25.376> stealing<00:42:25.845> of<00:42:26.006> cash,<00:42:26.346> right?

00:42:27.014 --> 00:42:30.070
No<00:42:27.240> reason<00:42:27.499> to<00:42:27.579> come<00:42:27.822> up<00:42:27.984> with<00:42:28.162> a<00:42:28.226> short<00:42:29.035> change<00:42:29.439> box.

00:42:30.635 --> 00:42:38.731
Anyway,<00:42:30.975> so<00:42:31.137> that<00:42:31.315> was<00:42:31.606> a<00:42:33.562> big<00:42:33.805> impact,<00:42:34.274> very<00:42:34.516> positive<00:42:34.937> impact,<00:42:35.567> quiet,<00:42:36.133> easy<00:42:36.360> for<00:42:36.553> the<00:42:36.698> operator,<00:42:37.279> great<00:42:37.505> return<00:42:37.763> on<00:42:37.812> investment.

00:42:40.147 --> 00:42:40.586
So,<00:42:40.167> anyway.

00:42:40.893 --> 00:42:44.668
Before<00:42:41.135> we<00:42:41.232> go,<00:42:42.022> I<00:42:42.103> got<00:42:42.232> to<00:42:42.345> ask<00:42:42.522> you<00:42:42.587> about<00:42:42.829> your<00:42:42.990> book<00:42:43.474> called<00:42:43.732> Master<00:42:44.216> of<00:42:44.362> None.

00:42:44.862 --> 00:42:48.990
And<00:42:44.942> it's<00:42:46.137> how<00:42:46.382> a<00:42:46.480> jack<00:42:46.887> of<00:42:47.034> all<00:42:47.213> trades<00:42:47.702> can<00:42:47.849> still<00:42:48.110> reach<00:42:48.436> the<00:42:48.517> top.

00:42:50.360 --> 00:42:59.068
I'm<00:42:50.475> fascinated<00:42:50.968> by<00:42:51.050> this<00:42:51.296> idea<00:42:51.855> of<00:42:52.036> like<00:42:52.348> you<00:42:52.397> don't<00:42:52.677> really<00:42:52.858> have<00:42:52.940> to<00:42:53.088> be<00:42:53.186> a<00:42:53.203> master<00:42:54.074> of<00:42:54.756> any<00:42:54.932> one<00:42:55.157> particular<00:42:55.654> thing,<00:42:56.616> but<00:42:57.497> really<00:42:57.802> good<00:42:57.962> at<00:42:58.059> a<00:42:58.075> lot<00:42:58.443> of<00:42:58.620> things.

00:43:00.447 --> 00:43:03.124
What<00:43:00.607> led<00:43:00.784> you<00:43:00.848> to<00:43:00.944> write<00:43:01.185> the<00:43:01.265> book<00:43:01.970> and<00:43:02.146> tell<00:43:02.371> us<00:43:02.531> more<00:43:02.691> about<00:43:02.948> that?

00:43:03.269 --> 00:43:10.963
Well,<00:43:03.509> I<00:43:03.669> felt<00:43:03.910> like,<00:43:04.375> as<00:43:04.535> hopefully<00:43:04.952> your<00:43:05.417> listener<00:43:05.994> would<00:43:06.234> feel<00:43:06.475> today,<00:43:07.421> I<00:43:07.517> felt<00:43:07.677> like<00:43:08.222> I<00:43:08.254> had<00:43:08.334> a<00:43:08.398> lot<00:43:08.575> of<00:43:08.623> great<00:43:08.863> stories<00:43:09.360> to<00:43:09.521> tell<00:43:09.697> about<00:43:10.002> the<00:43:10.082> growth<00:43:10.402> of<00:43:10.466> the<00:43:10.563> business.

00:43:11.909 --> 00:43:19.043
Some<00:43:12.166> of<00:43:12.246> these<00:43:12.470> about<00:43:12.807> the<00:43:13.031> ice<00:43:13.288> cream<00:43:13.528> and<00:43:13.689> about<00:43:13.993> the<00:43:14.073> credit<00:43:14.234> card<00:43:14.554> reader<00:43:15.292> and<00:43:15.452> these<00:43:15.693> things<00:43:16.254> and<00:43:16.398> the<00:43:16.494> two<00:43:16.654> guys,<00:43:17.296> some<00:43:17.376> of<00:43:17.456> these<00:43:17.552> things<00:43:17.873> I<00:43:18.017> talk<00:43:18.177> about<00:43:18.482> in<00:43:18.578> the<00:43:18.722> book.

00:43:19.219 --> 00:43:23.031
So,<00:43:19.877> if<00:43:20.005> you're<00:43:20.342> if<00:43:20.438> your<00:43:20.567> listener<00:43:20.986> likes<00:43:21.292> that,<00:43:21.549> then<00:43:21.710> they<00:43:21.871> should<00:43:22.097> enjoy<00:43:22.435> the<00:43:22.515> book<00:43:22.773> as<00:43:22.918> well.

00:43:23.965 --> 00:43:26.895
But<00:43:24.464> so,<00:43:24.754> one,<00:43:24.931> I<00:43:25.011> felt<00:43:25.156> like<00:43:25.398> there<00:43:25.446> are<00:43:25.494> a<00:43:25.510> number<00:43:25.736> of<00:43:25.816> good<00:43:25.977> stories<00:43:26.541> to<00:43:26.605> tell.

00:43:27.008 --> 00:43:37.709
Two,<00:43:29.600> I<00:43:29.681> would<00:43:29.810> say<00:43:30.393> that<00:43:30.961> what<00:43:31.123> I<00:43:31.302> really<00:43:31.610> did<00:43:32.015> offer<00:43:32.826> to<00:43:32.875> our<00:43:33.086> system<00:43:33.735> was<00:43:33.962> less<00:43:34.238> about,<00:43:35.178> you<00:43:35.211> know,<00:43:35.503> what<00:43:35.600> kind<00:43:35.762> of<00:43:35.908> ice<00:43:36.151> cream<00:43:36.427> and<00:43:36.492> what<00:43:36.638> kind<00:43:36.735> of<00:43:36.816> burger<00:43:37.206> and<00:43:37.319> so<00:43:37.546> on.

00:43:38.543 --> 00:43:48.522
But<00:43:38.688> I<00:43:38.785> think<00:43:38.946> what<00:43:39.091> I<00:43:39.252> did<00:43:39.429> offer<00:43:39.735> to<00:43:39.816> our<00:43:39.993> system<00:43:40.396> for<00:43:40.638> 23<00:43:41.105> years<00:43:41.379> as<00:43:41.524> CEO<00:43:42.072> was<00:43:42.249> good<00:43:42.475> leadership<00:43:44.006> and<00:43:44.747> help<00:43:45.054> them<00:43:45.231> move<00:43:45.473> in<00:43:45.553> a<00:43:45.634> direction<00:43:46.117> that<00:43:46.262> transforms<00:43:47.190> transformed<00:43:47.623> a<00:43:47.687> lot<00:43:47.848> of<00:43:47.928> people's<00:43:48.330> lives.

00:43:48.972 --> 00:43:49.678
And<00:43:49.068> I<00:43:49.164> know<00:43:49.550> that.

00:43:50.096 --> 00:43:57.498
I<00:43:50.192> mean,<00:43:50.304> I'm<00:43:50.513> telling<00:43:50.834> you,<00:43:51.300> I<00:43:51.396> know<00:43:51.717> it,<00:43:52.039> you<00:43:52.071> know,<00:43:52.279> 20<00:43:52.585> years<00:43:52.841> later<00:43:53.789> because<00:43:54.110> they<00:43:54.206> tell<00:43:54.463> me<00:43:54.608> so<00:43:55.089> and<00:43:55.186> because<00:43:55.555> I<00:43:55.651> see<00:43:55.892> their<00:43:56.053> lives<00:43:56.390> are<00:43:56.518> different,<00:43:57.241> you<00:43:57.273> know.

00:43:58.124 --> 00:44:01.287
So<00:43:59.248> I<00:43:59.344> know<00:43:59.569> I<00:43:59.665> provided<00:44:00.227> effective<00:44:00.709> leadership.

00:44:02.379 --> 00:44:15.787
And<00:44:02.475> so<00:44:03.182> Master<00:44:03.696> of<00:44:03.824> None<00:44:04.145> does<00:44:04.322> speak<00:44:04.643> to<00:44:04.884> the<00:44:05.606> idea<00:44:07.212> that<00:44:07.838> I<00:44:07.935> didn't<00:44:08.416> necessarily<00:44:08.802> master<00:44:09.283> any<00:44:09.476> single<00:44:09.861> topic,<00:44:10.343> but<00:44:10.488> I<00:44:10.568> did<00:44:10.825> lead<00:44:11.130> the<00:44:11.242> system<00:44:11.628> on<00:44:11.772> a<00:44:11.869> path<00:44:12.190> that<00:44:12.414> really<00:44:13.473> transformed<00:44:14.039> the<00:44:14.120> brand,<00:44:14.444> transformed<00:44:15.026> a<00:44:15.075> lot<00:44:15.156> of<00:44:15.253> people's<00:44:15.576> lives.

00:44:16.466 --> 00:44:33.774
By<00:44:16.693> the<00:44:16.774> way,<00:44:17.356> the<00:44:18.068> book<00:44:18.570> makes<00:44:18.813> the<00:44:18.958> point,<00:44:20.920> the<00:44:21.034> jack<00:44:21.377> of<00:44:21.442> all<00:44:21.589> trades,<00:44:21.932> master<00:44:22.258> of<00:44:22.487> none<00:44:24.625> comes<00:44:24.935> out<00:44:25.131> of<00:44:25.164> the<00:44:25.196> mouth<00:44:25.539> of<00:44:25.621> a<00:44:25.686> guy<00:44:25.849> named<00:44:26.078> Robert<00:44:26.486> Greene<00:44:28.493> who<00:44:28.655> made<00:44:29.139> the<00:44:29.236> comment<00:44:29.623> about<00:44:31.416> a<00:44:31.642> writer<00:44:32.450> for<00:44:32.546> whom<00:44:32.724> he<00:44:32.853> had<00:44:33.031> no<00:44:33.257> respect.

00:44:33.838 --> 00:44:37.496
He<00:44:34.081> says<00:44:34.307> the<00:44:34.404> guy<00:44:34.630> is<00:44:34.823> a<00:44:35.712> jack<00:44:36.018> of<00:44:36.164> all<00:44:36.325> trades<00:44:36.729> and<00:44:36.826> master<00:44:37.294> of<00:44:37.440> none.

00:44:37.571 --> 00:44:39.941
Well,<00:44:37.740> that<00:44:37.852> guy<00:44:38.616> You've<00:44:38.891> never<00:44:39.117> heard<00:44:39.279> of<00:44:39.408> Robert<00:44:39.747> Greene.

00:44:39.990 --> 00:44:40.894
I'd<00:44:40.103> never<00:44:40.232> heard<00:44:40.313> of<00:44:40.410> Robert<00:44:40.733> Greene.

00:44:41.282 --> 00:44:43.656
The<00:44:41.363> guy<00:44:41.540> he<00:44:41.621> was<00:44:41.847> commenting<00:44:42.267> about<00:44:42.655> was<00:44:42.833> William<00:44:43.140> Shakespeare.

00:44:45.440 --> 00:44:50.030
Oh,<00:44:45.861> so<00:44:46.105> yeah,<00:44:46.526> that's<00:44:47.662> just<00:44:47.905> the<00:44:48.051> greatest<00:44:48.408> writer<00:44:48.716> of<00:44:48.862> all<00:44:48.959> time,<00:44:49.770> right?

00:44:50.078 --> 00:44:54.302
So<00:44:50.192> that's<00:44:50.500> where<00:44:50.662> this<00:44:50.889> comes<00:44:51.133> from<00:44:51.392> in<00:44:51.457> our<00:44:51.700> vernacular,<00:44:52.400> you<00:44:52.593> know,<00:44:52.674> master<00:44:52.996> of<00:44:53.141> none,<00:44:53.464> jack<00:44:53.657> of<00:44:53.786> all<00:44:53.948> trades.

00:44:55.012 --> 00:44:57.802
So<00:44:55.480> that's<00:44:55.818> the<00:44:55.979> book,<00:44:56.221> does<00:44:56.544> relay<00:44:56.850> a<00:44:56.931> lot<00:44:57.092> of<00:44:57.173> those<00:44:57.286> stories.

00:44:58.302 --> 00:45:01.204
And<00:44:58.802> I<00:44:58.963> think<00:44:59.189> ultimately<00:44:59.753> it<00:44:59.850> is<00:45:00.027> about<00:45:00.898> leadership.

00:45:02.985 --> 00:45:10.233
But<00:45:03.148> I<00:45:03.310> didn't<00:45:04.445> come<00:45:04.672> at<00:45:04.851> my<00:45:05.078> leadership<00:45:05.662> with<00:45:05.824> a<00:45:05.905> view<00:45:06.068> of<00:45:07.222> I<00:45:07.255> know<00:45:07.643> all<00:45:08.533> because<00:45:08.841> I<00:45:09.003> didn't.

00:45:11.123 --> 00:45:16.274
So,<00:45:11.689> it<00:45:11.916> is<00:45:12.191> about<00:45:12.482> leadership<00:45:13.373> and<00:45:14.020> how<00:45:14.198> to<00:45:14.522> engage<00:45:14.926> in<00:45:15.007> effective<00:45:15.396> leadership,<00:45:15.900> I<00:45:16.046> believe.

00:45:18.095 --> 00:45:18.208
Yeah.

00:45:18.257 --> 00:45:20.338
And<00:45:18.338> for<00:45:18.485> those<00:45:18.729> who<00:45:18.810> want<00:45:18.956> to<00:45:19.216> read<00:45:19.460> it,<00:45:19.623> go<00:45:19.720> to<00:45:19.867> cliffordhudson.com.

00:45:21.500 --> 00:45:24.762
It's<00:45:21.773> also,<00:45:22.319> I<00:45:22.416> imagine<00:45:22.801> it's<00:45:22.978> everywhere<00:45:23.701> books<00:45:23.959> are<00:45:24.023> sold,<00:45:24.489> right?

00:45:24.891 --> 00:45:25.228
You<00:45:24.987> bet.

00:45:25.325 --> 00:45:29.809
It's<00:45:25.630> called<00:45:25.807> Master<00:45:26.996> of<00:45:27.157> None:<00:45:27.639> How<00:45:27.800> a<00:45:27.880> Jack<00:45:28.137> of<00:45:28.266> All<00:45:28.427> Trades<00:45:28.764> Can<00:45:28.909> Still<00:45:29.150> Reach<00:45:29.391> the<00:45:29.487> Top.

00:45:30.598 --> 00:45:35.042
And<00:45:30.761> it's<00:45:31.330> also<00:45:31.656> out<00:45:31.770> in<00:45:31.900> audio<00:45:32.306> form<00:45:32.648> if<00:45:32.811> you're<00:45:32.973> driving<00:45:33.445> and<00:45:33.543> you<00:45:33.624> want<00:45:33.754> to<00:45:33.803> listen<00:45:34.110> to<00:45:34.222> it<00:45:34.367> rather<00:45:34.544> than<00:45:34.704> read<00:45:34.962> it.

00:45:35.171 --> 00:45:37.197
You<00:45:35.267> can<00:45:35.910> download<00:45:36.569> it<00:45:36.650> in<00:45:36.714> that<00:45:37.020> form.

00:45:37.743 --> 00:45:42.970
And<00:45:37.856> if<00:45:38.065> you<00:45:38.322> didn't<00:45:38.804> like<00:45:39.190> hearing<00:45:40.091> my<00:45:40.316> voice<00:45:40.493> today,<00:45:40.959> you're<00:45:41.200> really<00:45:41.538> going<00:45:41.650> to<00:45:41.699> have<00:45:41.875> a<00:45:41.940> hard<00:45:42.245> time<00:45:42.310> with<00:45:42.471> that<00:45:42.583> book.

00:45:43.067 --> 00:45:49.317
But<00:45:43.695> otherwise,<00:45:44.533> it<00:45:45.644> is<00:45:46.128> me<00:45:46.353> reading<00:45:46.611> my<00:45:46.772> own<00:45:46.997> book,<00:45:47.320> which<00:45:47.481> was<00:45:47.658> kind<00:45:47.835> of<00:45:47.916> a<00:45:48.061> fun<00:45:48.238> experience<00:45:48.802> in<00:45:48.963> itself.

00:45:51.650 --> 00:45:56.553
Well,<00:45:51.746> Cliff,<00:45:52.003> thanks<00:45:52.228> so<00:45:52.341> much<00:45:53.113> for<00:45:54.093> joining<00:45:54.560> us<00:45:54.736> today<00:45:54.978> on<00:45:55.074> the<00:45:55.219> show,<00:45:55.540> sharing<00:45:55.942> your<00:45:56.087> story.

00:45:56.746 --> 00:45:59.849
Man,<00:45:57.212> I<00:45:57.293> could<00:45:57.389> talk<00:45:57.550> to<00:45:57.614> you<00:45:57.711> forever,<00:45:58.579> particularly<00:45:58.965> about<00:45:59.238> the<00:45:59.319> franchise<00:45:59.753> model.

00:46:00.896 --> 00:46:06.152
Model,<00:46:01.348> and<00:46:01.509> really<00:46:01.815> the<00:46:01.912> way<00:46:02.138> you<00:46:02.396> led<00:46:02.654> Sonic<00:46:03.363> into<00:46:05.040> just<00:46:05.282> a<00:46:05.443> juggernaut.

00:46:06.281 --> 00:46:10.278
So<00:46:06.910> thank<00:46:07.152> you<00:46:07.233> so<00:46:07.410> much<00:46:07.716> for<00:46:08.265> coming<00:46:08.587> on,<00:46:09.071> and<00:46:09.167> maybe<00:46:09.329> we'll<00:46:09.571> talk<00:46:09.700> again<00:46:09.980> soon.

00:46:10.625 --> 00:46:10.741
Good.

00:46:10.790 --> 00:46:11.765
I'll<00:46:10.955> look<00:46:11.137> forward<00:46:11.385> to<00:46:11.715> it.

00:46:12.129 --> 00:46:12.723
Thank<00:46:12.294> you<00:46:12.376> very<00:46:12.542> much.