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đź”´ PRIVATE EQUITY OWNED

Sonic Drive-In

fast food · Oklahoma City, OK

PE Firm

Roark Capital

Acquirer

Inspire Brands

Year Acquired

2018

“Bought for $2.3 billion. Kids hired for $7.25.”

The PE Playbook

  • •Inspire Brands (Roark Capital) acquired Sonic for $2.3 billion in 2018, taking it private
  • •Multiple child labor violations: 91 underage children found working illegally across 13 South Carolina locations
  • •Class action lawsuit filed against 30 Sonic locations for wage theft and overtime violations; settled in 2022
  • •Franchisees fined over $70,000 for child labor violations including allowing minors to operate commercial fryers

Since the Acquisition

  • â–¸Employees at three Ohio locations resigned en masse in February 2019 after Inspire management changes, alleging a 50% cut to hourly pay
  • â–¸Class action lawsuit alleged workers at 30 locations were forced to work 30+ minutes off-the-clock after shifts
  • â–¸A 73-unit franchisee filed bankruptcy in 2020; 10 Pacific Northwest locations shut down by court order after franchisees couldn't pay $2 million in fees