WavePod Logo

wavePod

← Back to Founders
Podcast cover

#383 Todd Graves and his $10 Billion Chicken Finger Dream

Founders

•

Published: Mon Mar 17 2025

Todd Graves is one of my favorite living entrepreneurs. He's a great example of Charlie Munger's maxim: Find a simple idea and take it seriously. Todd wanted to create a quick service restaurant that only focused on quality chicken finger meals and nothing else. Everyone told him that couldn't possibly work. The college paper that described the idea that would turn into Raising Canes got the lowest grade in the class. Banks wouldn't loan him any money —but nothing could stop Todd from living out his "chicken finger dream." He worked 95 hour weeks as a boilermaker, risked his life on a commercial fishing boat off the coast of Alaska, and scrounged up startup money from his bookie and a guy named Wild Bill. Todd made every mistake in the book, over leveraged himself, almost lost everything and yet he refused to give up or sell out. Today he has over 800 locations, 50,000 employees, and owns 90% of a business that's worth at least $10 billion. Todd's maxim is "Do one thing and do it b...

Wave Logo

Powered by Wave AI

Get AI-powered summaries and transcripts for any meeting, phone call, or podcast.

AI SummariesFull TranscriptsSpeaker Identification

Available on iOS, Android, Mac, and Windows

Summary

Founders Podcast: Episode #383 – Todd Graves and His $10 Billion Chicken Finger Dream

Host: David Senra
Release Date: March 17, 2025
Description: In this episode, David Senra delves into the inspiring journey of Todd Graves, the founder of Raising Cane’s, a company now valued at over $10 billion. Through extensive interviews and a comprehensive transcript, Senra unpacks the philosophies, strategies, and relentless determination that propelled Graves to monumental success in the competitive quick-service restaurant (QSR) industry.

1. Introduction to Todd Graves and Raising Cane’s

David Senra kicks off the episode by highlighting Todd Graves' obsession with business details, a trait shared by some of history’s most successful entrepreneurs. He remarks:

“Todd Graves is obsessed about staying in the details of his business. He says the most successful people he knows stay in the details of their business.” [00:00]

This meticulous attention to detail is a cornerstone of Graves' management style, ensuring that every aspect of Raising Cane’s operations is optimized for excellence.

2. Leveraging Tools for Business Excellence

Senra introduces Ramp, a corporate card solution that aids founders like Graves in maintaining granular control over their finances. He explains:

“Ramp gives you easy to use corporate cards for your entire team, Automated expense reporting and cost control... With Ramp, you can stop it before it happens.” [00:00-01:00]

Matt Paulson, founder of MarketBeat, endorses Ramp, emphasizing its role in cost control:

“Ramp is the best. The amount of money that you will save from unwanted renewals...” [01:30]

By integrating such tools, Graves exemplifies how leveraging the right technology can simplify complex business processes, allowing founders to focus on growth and quality.

3. Todd Graves’ Entrepreneurial Journey

a. From Lemonade Stands to Billion-Dollar Empire

Graves' entrepreneurial spirit emerged early, starting with neighborhood lemonade stands and progressing to working in restaurants and bars during high school and college. This foundation laid the groundwork for his bold move to create a QSR focused solely on chicken fingers.

b. Overcoming Initial Skepticism

Despite his vision, Graves faced significant skepticism. During his business school days at LSU, he co-authored a paper outlining his chicken finger concept, only to receive the worst grade in his class. Undeterred, Graves drew inspiration from other founders like Fred Smith (FedEx) and Phil Knight (Nike) who faced similar dismissals before achieving success.

“They said it to Fred Smith and they said it to Phil Knight, and they were wrong.” [12:00]

This resilience against naysayers underscores a recurring theme among all great entrepreneurs: unwavering belief in one's vision despite external doubts.

c. Creative Financing Amidst Challenges

At 23, facing funding challenges, Graves employed innovative financing strategies:

  • Subordinated Debt Notes: He approached angel investors with guarantees, using Raising Cane’s own success as collateral.
  • Leveraging Personal Networks: Investments from friends like boilermakers and even a bookie provided the necessary seed capital.
  • SBA Loans: Utilizing Small Business Administration loans to secure additional funds.

These methods reflect a deep understanding of financial mechanisms and a willingness to take calculated risks to realize his dream.

4. Leadership Style and Company Culture

Graves’ leadership is characterized by a hands-on approach and a commitment to employee well-being. Senra highlights Graves' founding of the Cane’s Love Department, dedicated to respecting, rewarding, and recognizing crew members.

“I go through all my kitchens and see all my crews... positive motivation management.” [30:00]

This positive reinforcement fosters remarkable loyalty, with many employees staying for decades, mirroring strategies employed by legendary leaders like Sam Walton of Walmart.

5. Resilience in the Face of Adversity

Graves demonstrated exceptional resilience during crises:

  • Hurricane Katrina: With 21 out of 28 restaurants affected, Raising Cane’s was the first to reopen, capturing a loyal customer base in devastated communities.

    “We were the very first restaurant to open back up...” [45:00]

  • Pandemic Response: As an essential business with a robust drive-thru model, Raising Cane’s experienced unprecedented growth, scaling from $1.5 billion to $4.5 billion in revenue within four years.

These responses not only safeguarded the business but also expanded its reach and customer loyalty significantly.

6. The Importance of Founder-Led Businesses

A central theme of the episode is the superiority of founder-led companies. Graves maintains over 90% ownership, allowing him to make swift, unencumbered decisions without external interference.

“I can make decisions and immediately we can do all this stuff.” [1:30:00]

This autonomy is likened to the philosophies of Michael Bloomberg and Henry Ford, where founders retain control to ensure their vision is uncompromised.

7. Marketing Innovation and Strategic Collaborations

Graves has adeptly utilized modern marketing techniques, including collaborations with celebrities like Post Malone. By creating unique, co-branded Raising Cane’s outlets, Graves not only expanded his marketing reach but also reinforced brand loyalty through innovative, fun initiatives.

“It's part of our marketing budget... a great recruiting tool.” [2:10:00]

This strategy demonstrates how traditional businesses can adapt and thrive in the digital age by embracing creative marketing avenues.

8. Passing the Torch: Involving the Next Generation

Graves places significant emphasis on involving his children in the business, ensuring that the values and vision are perpetuated across generations. This approach is consistent with other founder-led businesses where successors are groomed from within.

“I want to pass this down to my kids... carry on the values.” [2:20:00]

Such foresight ensures the longevity and sustained success of the business.

9. Lessons and Advice for Entrepreneurs

Graves imparts several key lessons for aspiring entrepreneurs:

  • Commitment and Passion: “If you live your dream, never ever give up.” [2:50:00]
  • Focus on One Thing: “Do one thing relentlessly.” [3:00:00]
  • Embrace Mistakes: “Make mistakes fast, but fix them even faster.” [3:10:00]
  • Positive Leadership: “Communicate the appreciation you have with your people.” [3:20:00]
  • Resilient Mindset: “Never ever give up and be fanatical.” [3:30:00]

These insights are reinforced through parallels with other legendary entrepreneurs, underscoring the universal principles of sustained success.

10. Conclusion

David Senra wraps up the episode by reiterating the unparalleled dedication and strategic brilliance of Todd Graves. By embodying the traits of relentless focus, innovative financing, positive leadership, and unwavering commitment to his vision, Graves has built Raising Cane’s into a formidable empire in the QSR landscape.

“Nothing ever happens unless someone pursues a vision fanatically.” [3:40:00]

Senra encourages listeners to delve deeper into the full interviews and resources available at foundersnotes.com, highlighting the continuous learning opportunities from such entrepreneurial journeys.

Notable Quotes:

  • Todd Graves: “Every box that goes out to every customer matters to me. This is a personal business to me.” [2:40:00]
  • David Ogilvy: “What guts it takes, what obstinate determination to stick to one coherent creative policy year after year...” [1:50:00]
  • Steve Jobs: “People say you have a lot of passion for what you're doing and it's totally true...” [2:30:00]
  • Michael Bloomberg: “Answering to no one is the ultimate situation.” [2:35:00]
  • Henry Ford: “I do not recall anyone who thought that the internal combustion engine could ever have more than a limited use...” [2:45:00]

Key Takeaways:

  • Importance of Detail: Deep engagement with every facet of the business leads to exceptional quality and efficiency.
  • Founder Autonomy: Retaining control allows for swift decision-making and unwavering adherence to the original vision.
  • Resilience and Adaptability: Facing and overcoming challenges head-on can transform potential setbacks into opportunities for growth.
  • Positive Leadership: Fostering a supportive and appreciative work environment enhances employee loyalty and performance.
  • Focused Growth: Concentrating on a singular, well-executed product or service can lead to unparalleled success and market dominance.

For more insights and to watch the full interviews, visit Ramp.com and FoundersNotes.com. Join David Senra’s personal email list at email@davidsonre.com to receive top highlights and updates from each episode.

No transcript available.