Sonic Drive-In CEO Clifford Hudson
Clifford Hudson, the former CEO of Sonic Drive-In, is an example of what a leader can accomplish when they are committed to excellence. After only a few years in the legal industry, Hudson was able to join Sonic in the early 1990s. Over the next 23 years, he demonstrated his dedication and savvy business acumen by leading Sonic from a $200 million company to one worth an impressive $2.3 billion when Sonic was acquired by an affiliate of Roark Capital in 2018.
Hudson began his tenure at Sonic by renegotiating license agreements, introducing new menu items, and increasing advertising. He also worked to improve the quality and consistency of Sonic’s products, as well as the physicality of the drive-in restaurants. In 1994, he recognized the potential of Sonic’s ice cream business and encouraged franchisees to promote it more aggressively. This initiative proved successful, as monthly profits at the average store increased by 12% in May 1996. By 1997, the average store’s profits had risen by an impressive 40%, and Hudson had established Sonic as a leader in the fast-food industry.
One of the most critical initiatives Hudson implemented during his tenure was the addition of credit card readers at the drive-in restaurants. He explained, “20 years ago, we were doing 5% of our sales in credit cards, 95% in cash.” He realized that the younger population was increasingly using credit cards, so he sought to make it easier for customers to pay with credit cards. He worked with his tech group to design a credit card reader that could attach to the menu housing, and the result was an enormous success. Not only did the average ticket size increase by 40% when customers could pay with credit cards, but the franchisees also saw a substantial return on investment.
Ultimately, Hudson's success was due to his leadership and commitment to excellence; he says, "I think what I did offer to our system for 23 years as CEO was good leadership and helped them move in a direction that transformed many people's lives." He led Sonic on a path that transformed the brand and the lives of those associated with it. His success was further exemplified by the fact that by the time Sonic was acquired in 2018, credit card sales had increased from 5% to 100% of the company's total sales.
Hudson's success has been further immortalized in his book, Master of None, which speaks to the idea that one does not have to be a master of any particular thing but instead can be successful by being good at many things. He was able to lead Sonic on a path that transformed the brand and a lot of people's lives, even though he was not a master of any one particular thing.
The success of Clifford Hudson's efforts is undeniable, and Sonic's continued growth is a testament to his hard work and dedication. He successfully navigated the company through its transition from a local business to a national brand, leveraging the power of its franchise model to create a high-quality, consistent customer experience.