In the restaurant business, Troy Smith is a giant. He is the founder of Sonic Corp. (NASDAQ: SONC). Now, the company has a chain of about 3,600 units across 42 states.Unfortunately, Smith died this week. He was 87.
Like many great entrepreneurs, Smith got experience in his industry before he started his business. After serving in the Army Air Corps in World War II, he got a job as a truck driver for some cafes and restaurants. From this, he started to brainstorm business ideas.
But it took a few years to refine his concept. Actually, he helped to start a steak house and a root beer stand. No doubt, they were great learning experiences. For example, he realized that the margins on the root beer stand were much better. So, he unloaded the steak house.
And, he continued to try new things -- eventually creating the drive-in. To pull it off, he introduced things like an intercom speaker (for orders) and covered parking.
What's more, to pump up growth, Smith turned to franchising. However, he had a twist. Basically, he allowed his franchisees to add their own approaches, such as with menus. While growth was slow at first, things caught on.
Along the way, Sonic certainly encountered tough challenges, especially during the recession of the early 1980s. But with Smith's innovative thinking, he found ways to make the right changes to push the company forward and build an enduring brand.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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