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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