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- [00:00]
Guy Raz
Wondery subscribers can listen to how I built this early and ad free right now. Join Wondery in the Wondery app or on Apple Podcasts.
- [00:10]
NerdWallet
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- [00:12]
Guy Raz
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- [01:12]
NerdWallet
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- [02:17]
Guy Raz
Hey, it's Guy here. And what better way to celebrate the new year than with one of our all time favorite episodes? The Story of Raising Canes is so funny. It's so full of lessons and in some parts so implausible that I promise you you will not be able to forget it once you've heard it. We first ran this episode back in 2022 and since then Raising Cane's has expanded to more than 800 restaurants across the US. It is such a fun story and I think you're going to love it.
- [02:49]
Todd Graves
You know, back then we thought you could actually this is being naive you could actually go to a bank, bring a business plan, and they'd lend you money.
- [02:56]
Guy Raz
Here's my plan. I need $100,000.
- [03:00]
Todd Graves
Yeah. And I thought they isn't this a great plan? Isn't this a great idea?
- [03:05]
Guy Raz
And so did you do that?
- [03:06]
Todd Graves
Yeah, yeah, yeah. Look, we bought a couple of cheap suits and went to Office Depot and bought boxy briefcases with the brass combination locks. You remember those?
- [03:16]
Guy Raz
Yep, yep.
- [03:17]
Todd Graves
We went and we went and saw every bank in town. I had a briefcase, Craig had a briefcase. And we would put it on their desk sitting across from in our chairs, and we would open the brass combination lock like somebody was gonna steal our chicken finger. Business plan.
- [03:38]
Guy Raz
Welcome to How I Built this, a show about innovators, entrepreneurs, idealists, and the stories behind the movements they built. I'm Guy Raz, and on the show today, how Todd Graves built one of the most popular fast food chains in the US by ignoring the advice of almost everyone and by going through hell and high water, almost literally to raise the money. When you have an idea for something interesting, say a business or a product or an initiative inside of your workplace, you will at some point get asked the following. How is it different from what's already out there? It's a perfectly fair question and a question many of us are trained to automatically ask because we humans naturally assume that if the idea you're coming up with isn't totally original, well, then it's probably not worth pursuing. Except that being different or original isn't necessarily a recipe for success. Just look at Google Glass or Heinz Blue ketchup or the short lived, short form video service Quibi or. All of these were very different and very original and very much failures. Which must mean at this point in my introduction, I'm obligated to quote Ecclesiastes chapter 1, verse 9. There is nothing new under the sun. Even some of the biggest companies in the world, like Google and Facebook, were originally improvements on existing technology. So in some ways, the right question to ask isn't how is it different? But rather, how is it better? Because that is the question Todd Graves could easily answer. In 1996, his idea was not revolutionary. He wanted to sell fried chicken fingers. But his execution is what would make his restaurant. Raising Cane's one of the most successful fast food chains in the United States. On a per restaurant basis, Raising Cane's earns more money than any other major fast food chain with the exception of Chick Fil A. And the entire menu is four simple items. Chicken fingers, crinkle, cut Fries, Texas toast, and coleslaw. You can get a fountain drink, ketchup, and a container of Cane's special dipping sauce as well. That's it. And what that means is that if you only have four things on your menu, you better be pretty confident that those four things are exceptional, because Raising Cane's doesn't have burgers or frosty shakes or hot dogs or tacos to lean on if the rest of the menu. But Todd's vision, at least at the beginning, wasn't to build an empire of restaurants that now numbers more than 600. He simply wanted a place in Baton Rouge where students at Louisiana State University could hang out after football games or after a night of partying. And while lots of people suggested that Todd introduce classic Louisiana Cajun spices or even healthy options like salad, he stayed laser focused on his short, simple, and efficient menu. But going from one restaurant to 600 wasn't a seamless journey. In fact, getting the money to finance his first restaurant required two dangerous detours to an oil refinery and an Alaskan salmon fishing boat. But before that happened, Todd Graves grew up in Baton Rouge in a family of five. His dad sold warranties for car dealerships, and his mom helped his dad with the business. Todd's dad was actually a former profess professional football player, too, a lineman for the New Orleans Saints back in the 1970s. And Todd grew up with dreams of playing college football just like his dad.
- [07:41]
Todd Graves
I was 6:1, weighed almost 200 pounds in high school, playing 2A football, right? And so I was a quarterback and then the defensive end, you know, going both ways. And, you know, I didn't realize at the time, but that really made for me having a smooth childhood. You know, I was just really fortunate, you know, I was just one of the better kids, you know, or of the best kids playing sports, which also, you know, at younger ages, you know, makes you more popular, Right? And so, yeah, I was a reasonably smart kid, and I worked hard in my classes, so I was part of all the honors classes. And then I liked drama, so I did, you know, plays.
- [08:18]
Guy Raz
Oh, you did theater?
- [08:19]
Todd Graves
Yeah. Yeah. I would say I had different groups of friends, you know, I had the real smart kids that were friends, you know, and then sometimes they complained about the jocks, you know, not being friendly to them, and I'd kind of bridge those together. Then you had the artistic, and, you know, I would kind of bridge all those along, and I didn't really think that was my role. But later on in life, I kind of understood that it was, you Know, when I look back and, you know, I think that made me more well rounded and made me more empathetic to people being around different people and different backgrounds, different interests, but also seeing their challenges with the other groups.
- [08:55]
Guy Raz
So you were. You were the high school quarterback and a pretty good athlete, I think. I mean, Louisiana. I would say Louisiana, Texas, big football and Louisiana, also baseball states. Did you ever, ever, like, have dreams of playing at the college level? Did you ever think, you know, maybe I can. I can play in college?
- [09:13]
Todd Graves
Yeah, I did, and I wanted to. I just wasn't good enough to play Division 1. I wanted to play major college football. So we're talking lsu, you know, a big Southeastern Conference school. And so I wasn't that good. I actually got offers from smaller schools to go play. But I realized I really wanted that college experience. You know, I wanted the big school. I wanted the. I wanted to. I wanted the party. You know, I wanted to have fun. You know, I'm a kid of the 70s and 80s, man. We grew up with the movies of college being just the ultimate, you know, so I wanted to be able to do that.
- [09:45]
Guy Raz
So you actually wound up going to the University of Georgia in Athens, and I read that you majored in telecommunications and I guess started working at a bunch of different restaurants around campus while you were there, right?
- [09:59]
Todd Graves
I did, I did. I worked at a lot of different restaurants and bars. Everything from more quick service types of restaurants to, like, you know, mom and pop grills and bars. You know, it's a great college job. And that's really where I fell in love with the restaurant business. I was always in love with cooking and everything around food.
- [10:18]
Guy Raz
Did you know how to cook when you were in college?
- [10:20]
Todd Graves
Yeah, I did. You know, just growing up in South Louisiana, food is so much a part of our culture. And, you know, I grew up cooking in my mother's kitchen, and I was always interested in it, so I learned to make intricate Cajun meals when I was young. So. But we make a gumbo, and, you know, that gumbo really could be made in a couple hours. But, you know, you want that thing to stretch out all day. And why you want it to is because you're spending time cooking with somebody, and then your family and friends are coming through the kitchen. They're coming in, they're checking on the progress of the gumbo. They want to come in and stir that pot. It's a way to spend time together. It's a way to connect. It's a way to say, I love you.
- [10:55]
Guy Raz
You were Doing roux for the gumbo.
- [10:57]
Todd Graves
Absolutely. Roux for gumbo.
- [11:00]
Guy Raz
What's the color you're looking for in that?
- [11:02]
Todd Graves
Roux. Dark, dark, dark, dark, dark. Roux. I have to tell you now, most of the time I cheat, and I use Savoir's Roux in a jar, which is almost as good.
- [11:12]
Guy Raz
Yeah, that's right. No shame. No shame. You're a busy guy.
- [11:16]
Todd Graves
Yeah, it's fun, too. Cause I cook with my kids today. Especially my son, he loves it. It's the way we spend time together. Like my mother and I spent time together. But all those Cajun dishes, the crawfish etouffees, even things just like, look, steak and potatoes. Like, I was a junior high kid grilling the steaks for my parents, making gin and tonics for them, you know what I mean? I don't know many other kids in seventh grade that are doing that.
- [11:35]
Guy Raz
Can you make me a gin and tonic, son? I love that. Where was your first restaurant job?
- [11:40]
Todd Graves
The first restaurant job I had was actually I functioned as a kitchen steward for our fraternity. And that gave me great experience. I just signed up to do it, you know, my freshman year. And from there we had a chef. Her name was Martha, and she was. Man, she was an amazing cook. She cooked just great Southern food. We're talking Mac and cheese and collard greens and fried chicken. I mean, she could cook great. So I spent my time in the kitchen with her, going over the food, the food quality and learning that way. And then the owner of the business that did this for a lot of fraternities, he taught me things because I asked about food costs. What is your food cost? And he had the real simple answers of, you know, it's a third of what you. Of what you should sell something for. So, you know, if you're going to sell something for a dollar, your food cost should be 33 cents. And from there, I just worked at different. I can't even remember all the names of them. Just different college bars that other people worked at that I go jump onto. And working for these entrepreneurs and learning about food, you realize, you know, how hard of a business it is. And you also realize you have to love it. And, you know, I loved it. Yeah, I loved. I loved the restaurant business. And it was like, I loved the teamwork. I loved the immediate gratification of cooking something and serving something to somebody and them smiling, you know, and saying, man, that was good.
- [13:05]
Guy Raz
So you are one of these. I mean, I worked in restaurants when I was in high school, and I liked it too. You know, I worked at a pizzeria and I even worked at a gas station making the burgers and chopping the onions. And actually, I think that's why I know how to cook today, because I did it back then. But I can't say I loved it. But there was something about restaurants and the intensity of working in a restaurant that you just loved, that you just connected with you.
- [13:30]
Todd Graves
It's two things. One is my mind's always rolling. It's always thinking of ideas. It's always these things, and it's therapeutic to me. If I'm on a fry line and cook, I can focus on fry the chicken, you know, do the fries, deliver the box. So you're. It's immediate gratification. It's like some people, why they like to cut their grass, right?
- [13:51]
Guy Raz
Yeah.
- [13:51]
Todd Graves
You know, but then two, when you're slammed and busy, you're working with a team and everybody's high stress, but that teamwork and when you're just cranking together, you know, server's like, we're slammed, we're behind, my table's upset. No problem, we'll get it right to you. That intensity is good. And maybe that came from, you know, that's the way sports is, right? You know, sports is high intensity. You got to make quick decisions, you got to roll. And, dude, if you mess up, make up for it, keep going. And I think, you know, when you get done with your day, you know, you don't have a problem going to.
- [14:21]
Guy Raz
Sleep that night and you accomplish something.
- [14:23]
Todd Graves
You accomplish something.
- [14:25]
Guy Raz
Was there a point in college where you thought, I think I want to do this, I think I want to. I want to start a restaurant or run a restaurant professionally. Because you were studying telecommunications, it seems to me that you already in college were thinking, I think this is where, this is where I'm headed. Restaurants.
- [14:42]
Todd Graves
Yeah, absolutely. Was, you know, it was. It was something I knew I could do. And I also, I wanted to. What I wanted to do was open a restaurant at the north gates of lsu. I wanted to be home. You know, I loved lsu. And I was a college student. That was familiar to me. I knew what college students wanted to eat. I knew how much college students could spend. I knew what environment college students wanted to come to. I knew hours of operation. I knew I'd have a late night restaurant because they're up late either studying or going to the bars. And so I knew all this. And so I looked at concepts and you know, what kind of restaurant I want to start. And at that Time, boneless chicken was becoming incredibly popular. It was just really becoming popular. Like, back in the 80s, people started saying that red meat was terrible for you. All these studies came out. A lot of people were saying, look, chicken as an alternative. But, you know, not just bone in chicken, which is what I grew up on. You started getting boneless chicken, you know, white meat, boneless chicken with strips or fingers or nuggets. And you were seeing them on menus from everywhere to, like, national chains like Chili's would have it on the menu with a great dipping sauce, or mom and Pops would have it. Like, I saw it everywhere, and we ate it like crazy. And, you know, I started seeing. I'm like, man, this trend is going. And you had people that specialized in it, like Guthrie's chicken fingers throughout the South, Zaxby's chicken fingers and buffalo wings, and, you know, different concepts like that were opening and doing well with it. And so I thought that was a really good concept to start. So I called my old buddy Craig, Silvi, dear friend, still today, and told him what I wanted to do in the restaurants. And I talked to him, and he said, hey, this sounds pretty good. You know, let's. Let's go and do this. And I said, are you serious? Yeah.
- [16:26]
Guy Raz
And Craig, by the way, Craig was at lsu.
- [16:29]
Todd Graves
Craig was at lsu? Yeah, Craig was at LSU and was.
- [16:31]
Guy Raz
A high school friend of yours?
- [16:32]
Todd Graves
Yeah, Actually, Craig and I had gone to school since middle school. We're just best of friends. Plus, I just knew I could rely on him. He's the kind of guy that always has your back. He's one of those kind of friends.
- [16:45]
Guy Raz
So when you reached out to Craig with your idea, what was the idea you told him you had? What did you want to do?
- [16:52]
Todd Graves
Yeah, I told him I want to do a college restaurant at Northgates of lsu. I mean, I knew where the area I wanted to be. But, you know, back then, too, as you got to realize, I was thinking about just one location. That was my dream. I wanted everybody to say, man, that's the coolest restaurant. That's the greatest place.
- [17:07]
Guy Raz
That's where we eat. That's our hangout. That's where we get our chicken fingers.
- [17:10]
Todd Graves
Yeah.
- [17:11]
Guy Raz
And you knew that it was going to be chicken fingers, fries and drinks.
- [17:17]
Todd Graves
Absolutely, absolutely. You know, I mean, if you look at it, our menu is like what Guthrie's originally came back up with, like, in the late 60s, you know, is that chicken finger meal with the sauce and the fries and the coleslaw and the. And the Texas Toast. I wanted to take that to another level, and I wanted to make it better. And I wanted to make, you know, not only the menu better, but the operations better and. And have a little more character.
- [17:44]
Guy Raz
But I'm curious, because you're 22 and you're thinking, let's focus on one thing. And that's a really smart thing to think, okay? That's like a really sophisticated way to think about a business. But usually that doesn't come until many years later of just trying and failing and trying and failing. But already at the outset, you came to the realization that focusing on one thing is the way to go. And I wonder, I mean, did you come to that realization purely out of working for other restaurants and seeing the way they were doing it wasn't working, or was there another influence that led you to that belief in that view?
- [18:23]
Todd Graves
You know, I think a lot of it was just instincts and just part of me. And so, you know, I just always been a focused person, you know, and also, too, is, you know, I had worked at different type restaurants, right? You know, restaurants that served large menu, Mexican restaurants that had so many different menu items and all that, that intimidated me, all those different items. And doing it. Well, it is. It is very, very, very hard, you know, because restaurant business is hard enough by doing it. But if you focus on doing one thing that I knew I could handle at my young age and look, without having management experience in restaurants, I never managed a restaurant. I just worked there, you know, at these different restaurants. So that was less intimidating to me, saying, I can. I can execute on this.
- [19:12]
Guy Raz
All right, so you reach out to Craig with this idea, and he says, hey, that seems pretty good. He's still at lsu, right? And about to graduate, too, same time you're about to graduate.
- [19:24]
Todd Graves
Well, so no, Craig, because he changed majors, had another year of college, which actually was great because I was able to graduate and come back to Baton Rouge. And Craig was able to enroll in business classes, which he hadn't had before, but to change his major to general studies and get a minor in business. And Craig and I went through the classes he could take, and he enrolled in business planning class, which was great because neither of us had a clue on how to write a business plan. And we used that semester of his class at LSU to write the business plan.
- [19:57]
Guy Raz
And just to be clear, you had just graduated from University of Georgia, so you're back in your hometown of Baton Rouge, and what were you actually doing? Were you working in town?
- [20:09]
Todd Graves
I bartended at night. And while Craig was Taking these business planning classes. I was going to use other resources in Baton Rouge area. So Small Business Development Center, Service Corps of Retired Executives. These are retired executives that help aspiring entrepreneurs or people in startup businesses. All while Craig's going to class and learning about writing the business plan. And we're applying all this stuff during the day when he wasn't in class. But at night, I had to bartend. Cause look, I had to live, man. I had to. But I paid my rent and I had to eat and I had to drink a few beers.
- [20:39]
Guy Raz
So you were going to these free programs that exist in cities all over the country. Retired executives, mentors and so on. And you were saying, hey, I have this idea for a chicken restaurant.
- [20:49]
Todd Graves
Yeah, absolutely. I regretted not taking a business planning class, but I was doing a crash course and used every resource I could. Not only were these professional organizations I went to, I went to every smart business person I knew that started their own business in Baton Rouge. And they were always willing to sit down with me and give me their advice and what I should do.
- [21:09]
Guy Raz
I'm curious when you were. Because that's one of the most exciting times of starting a business, when the idea's in your head and it just consumes you and you're so excited. But what happens sometimes, oftentimes is you tell people your idea and then you get enough people saying, ah, it's not going to work. Or, you know, you may not want to go into that industry. And oftentimes that quashes the dream and people move on. I have to imagine that you. You went to some of these business executives and they said, todd, don't get into the food industry. It's. It's a death trap. You're not going to survive it.
- [21:42]
Todd Graves
Yeah. You know, unfortunately, when you have an idea, you know, good or bad, but that you're passionate about, most people are negative towards that good idea. You know, and it's not because they're ill intentioned people. It's just they want to help you.
- [21:59]
Guy Raz
Protect you.
- [22:00]
Todd Graves
They want to protect you. You're exactly right. You know, I got encouragement from the, you know, the Small Business Development center people, the service corps, retired executive people, and actually the entrepreneurs that started their own businesses. I got a lot of encouragement from them and great advice. Where I got all the negativity, which was pretty much overwhelming negativity, was telling all the other people about my dream.
- [22:23]
Guy Raz
Who are all the other people?
- [22:25]
Todd Graves
Well, I mean, just. Just people I knew in Baton Rouge. Right. And so friends of my parents, you know, they would Say, hey, what are you doing? I'm like, oh, man. You know, Craig and I are going to open this chicken finger restaurant. And imagine hearing that. And da, da, da. They're like, you know, common. Responsibly. Didn't you just graduate? Don't you have a. Don't you have a degree? And I'm like, yeah. They're like, well, why don't you just.
- [22:46]
Guy Raz
Go get a job?
- [22:47]
Todd Graves
Get yourself a real job?
- [22:48]
Guy Raz
Yeah.
- [22:48]
Todd Graves
And then if you still want to do this 10 years later, then you'll have enough money, and then you can start your little chicken finger restaurant.
- [22:54]
Guy Raz
Very sound advice, by the way. Very sound advice.
- [22:56]
Todd Graves
Yeah, but with every. You shouldn't do that. You know, I used as fuel. You know, you tell an entrepreneur they can, and they're gonna go and work harder to prove to you that they can.
- [23:08]
Guy Raz
But if you're coming to me and you're 22 and you say, guy, I want some advice. I want to start a chicken place. Chicken fingers. I'm thinking, okay, interesting. But I would say, all right. But, Todd, I mean, what makes you think you can make better chicken now, you know, with. With such limited experience in the industry? And what would you have said?
- [23:27]
Todd Graves
Well, I mean, I did get that. You know, I got that a lot. You know, you don't have management experience. You didn't learn a lot of these things. I said, well, I was paying attention, you know, and also is my kitch, the fraternity house, you know, give out how funny that is. Sounded like that's my experience. But you know what I would tell them is, is that, no, it's now two years is too long. You're like, I know what I'm doing now.
- [23:47]
Guy Raz
Yeah.
- [23:47]
Todd Graves
I don't have time. I'm going to figure this out. I want to do this now. And they would go, okay, okay, I got you. I got you. Well, here's some advice if you want to do this, you know, you need to write a business plan, and you need to take it to the banks because you need money to open. And that's the hardest part. They were right.
- [24:02]
Guy Raz
So Craig's in his class, and you say to him, let's do this as our business plan, because there's a professional business school professor who can evaluate it. And by the way, I've seen an image of this business plan online, and there's some names on it that I thought they were made up names, but they're real names. They're like these two Swedish guys. Were they from Sweden? Like, Sweden, Swedish guys at lsu?
- [24:25]
Todd Graves
Yeah, yeah. These guys were brilliant. It was three of them.
- [24:28]
Guy Raz
It was Casper Caspar Adquist, Frederick Norden and Mans Holmgren. I thought it was. I thought they were made up names. No, these are real. Were they like exchange students?
- [24:37]
Todd Graves
Yeah, they were. So they were like MBA level foreign exchange students or lsu. They happened to get paired with Craig for this project.
- [24:46]
Guy Raz
But I'm just wondering, was Casper or Frederick or Mans? Were they like, wait, who's this guy pointing at you like, how is he in the picture? He's not even in the class.
- [24:57]
Todd Graves
Exactly. Right. You know, but I mean, that's the brilliance of like being a college student. You're just more accepting this stuff. They're like, okay, this is cool. Plus, they knew they had, you know, a guy that's so motivated about this. Plus, I knew the restaurant business, you know, I mean, I knew it. And I knew food, for example, I knew exactly what an apron would cost per shift for each crew member, right? And I knew that because I met with a sales rep. And so nobody had that level of detail in their business plan because it's more about ideas and what they want to do. We were, we were going to start this thing, man. So I needed to know every detail for the business, you know, So I basically took my time. And during the days when they're in classes, I met with sales reps, I called businesses, companies and got an idea of everything. So our business plan was really spot on. Plus, I'm a little mildly sessive compulsive. So the details were just really over the top.
- [25:44]
Guy Raz
So you were, I mean, you were like, literally going to, like, chicken suppliers and sort of working out those numbers, like sourcing the potatoes or were you going to use like flash frozen fry? Like, did you, did you figure all the details out around the food?
- [26:00]
Todd Graves
Yeah. So around where we went? Yeah, I got general numbers, right? I knew I wanted a crinkle cut fry, right? That's a really popular southern fry. Plus, my mom cooked us a ride of crinkle cut fries. And so let's say I wanted to do Texas toast, right? You know, meeting with those vendors, I'm like, but I want a better Texas toast, right? You know, Raising Cane's has this just amazing bread, right? But like other concepts out of Texas toast, they use sliced bread, right? And so it's take a loaf, it goes through a slicer, and then they, you know, either stick it through a toaster or they do like we do griddle.
- [26:31]
Guy Raz
It's basically a fat piece of white bread.
- [26:33]
Todd Graves
Right, Right, exactly. But I'm like, I want it to be more moist, I want it to be more dense. And, you know, what are ways we could do that to where it's not a sliced bread? Well, like. Well, we can put dough balls together and put them together, small dough balls. It'll bake together as a loaf, but it's pull apart bread versus slice, which means it stays more moist and it's more dense. Right. That's how you work with your vendors. And so when I was getting information and getting these things, I started initial talks, right? And then it was like, okay, these are things that are in my head I can mull over.
- [27:04]
Guy Raz
All right, so you, you build a business plan. And by the way, how many pages was it?
- [27:09]
Todd Graves
Oh, man, I can't even remember.
- [27:11]
Guy Raz
40, 20?
- [27:12]
Todd Graves
Pretty thick. Oh, no, probably 100. We had all kind of different, you know, financial scenarios, researching wages and different things. You know, all the information in the industry I could find about why we would be successful. Right. You know, articles like, I can remember, you know, we're becoming a nation of chicken eaters and finding articles on boneless chicken popularity and, you know, going to places and stealing menus, you know, so I could go back and copy them on the thing to show, look, Chili's is serving this, you know, and things like that. I knew it'd be very hard to talk bankers into a concept that was very foreign to South Louisiana. Right? You know? Yeah, very foreign.
- [27:52]
Guy Raz
What was the name of the restaurant in the plan?
- [27:54]
Todd Graves
Well, we started off with a name called Folly's Chicken Fingers Follies.
- [27:58]
Guy Raz
All right, so Folly's Chicken Fingers. It's a great name.
- [28:01]
Todd Graves
Yeah. Craig worked construction. One summer, he had a guy he worked with called everybody Folly. He's like, hey, Folly. Hey, Folly. That. So we call each other Folly. And. And so that's what we thought the first name would be of the first name.
- [28:11]
Guy Raz
What does Folly mean?
- [28:13]
Todd Graves
That's a good question. He just called everybody Folly. Hey, Folly. He's a really nice guy, you know, funny guy, older guy, you know.
- [28:19]
Guy Raz
All right, so you guys, so you, so you, you helped them write this proposal and your name is not on it because you're not in the class, but obviously you're intimately part of this business plan. And they submit it to the professor and what happens?
- [28:35]
Todd Graves
Well, they went to present it. So we were up all night. We're, you know, finishing the details and the plan. You know, I'm a perfectionist. So it's like, wait, one more time. They're like, todd, it's good. And I'm like, no, no, no, no, no. And we're rehearsing it and, you know, it finished the last pot of coffee, you know, early morning, whatever time it was mid morning. And they went to go present the class. And I waited. I literally waited. And. And they did. They went and they did it. And then we all met right afterwards. I said, you know, how did it go? And they were a little bit discouraged. They're like, well, you know, I don't think he was that crazy about the concept. And I was like, what do you mean? You know, what on earth? And he said, well, you know, they said, good business plan, you know, incredible detail, but a concept serving just chicken fingers in south Louisiana that's known for its Cajun and creole foods, you know, plate lunches. It doesn't sound like something that's regionally what the taste are of the people to start a restaurant. That was for one. And I'm in my head going over all the reasons that's wrong. And they said, secondarily, he said that the quick service restaurant environment, fast food restaurants, they're going a different way than you're going. You want to do just basically one product, one meal, and do just that. And look where McDonald's is going.
- [30:01]
Guy Raz
Salad and apple slice.
- [30:04]
Todd Graves
It was two things. It was variety is what they were doing. They were saying, variety, get as much variety as you can on a quick service menu so you don't get a veto vote, meaning somebody in the family says, I veto you. And then also just healthy items, grilled items, salads. All those things were becoming. That was the major trend during that point. And we were basically bucking that. And then a couple days later, we got the grade back, and it was actually the worst grade in the class. But it was only a B minus. It was only a B minus. It's not bad. It was devastating to me. I mean, as far as, like, I was like the worst grade in the class. We put all this into it. This is gonna work. You know, you're just like, you know, you're emotional in that. And like I said, it just fired me up. But he was an easy grader, and I think he gave us a lot of credit because the plan was so comprehensive. He just had to ding it because the concept and, you know, to be honest with you, you know, like, we talk about faith, you know, it's like questioning that belief is good because I was like, you know, he brings up these good points, but I'm gonna buck that trend. We're gonna make it work. That's why it's going to work when.
- [31:12]
Guy Raz
We come back in just a moment, How Todd sets out to fund his B minus business plan by doing some of the most dangerous jobs in the world. Stay with us. I'm Guy Raz and you're listening to How I Built this.
- [31:31]
NerdWallet
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- [33:13]
Guy Raz
You know, every year I think to myself about the new goals I'm going to set for myself. But did you know that only 8% of us will stick with the resolutions we make? Today's episode is sponsored by Acorns. Acorns is a simple tool that makes it easy to lock in years and years of healthy money habits in just five minutes. Head to acorns.com built or download the Acorns app to start saving and investing for your future. Today, paid non client endorsement compensation provides incentive to positively promote Acorns Tier 5 compensation provided investing involves risk. Acorns Advisors LLC and SEC registered investment advisor. View important disclosures@acorns.combilt hey, welcome back to How I Built this. I'm Guy raz. So it's 1995, and Todd and Craig are months mulling over the comments that Craig's business professor made about their business plan. You know, about how fast food restaurants need to offer healthy options like fruit slices and salad. And after carefully going over that critique, they decide basically to ignore it.
- [34:27]
Todd Graves
I didn't want to lose focus. Right. I could have easily said, hey, let's add a chicken finger salad, you know, but I knew customers didn't want that. If I made the best chicken finger meal, why would you get a salad? Go get a salad the next day somewhere else. For some places. Great at salad. And I do. I'll eat my food one day. I hear you.
- [34:48]
Guy Raz
I agree.
- [34:50]
Todd Graves
Hearing that from a smart professor, it made me think for a second. Then I was like, no, we're going to stick with our menu. And if we add healthy items, people aren't going to order that anyway. And it's just going to complicate our system. Meaning lettuce is produce. Produce goes bad quickly.
- [35:07]
Guy Raz
Yeah.
- [35:07]
Todd Graves
That's going to complicate what we're trying to do, and it's not going to equate to sales. And I knew this.
- [35:12]
Guy Raz
So now you were determined to make this happen. You've got a business plan. B minus business plan. But you got a plan. There's a slight obstacle that you've got to overcome, which is money. Money to start a restaurant. So where did you go? What did you do?
- [35:28]
Todd Graves
Well, we knew the next step was to take that business plan and go see the banks. We needed the money. We didn't have any.
- [35:36]
Guy Raz
And you guys didn't have any family money or anything?
- [35:39]
Todd Graves
No, we had no family money. I mean, our families both did pretty well. We're middle class and they did well. But we were raised to the belief that once you're done with college, you're on your own. Back then, we thought you could actually. This is being naive. You could actually go to a bank, bring a business plan, and they'd lend you money.
- [35:57]
Guy Raz
Here's my plan. I need $100,000. Thousand dollars?
- [36:01]
Todd Graves
Yeah. And I thought they'd give it to you. Isn't this a great plan? Isn't this a great idea? Oh, goodness, Grace.
- [36:07]
Guy Raz
And so did you do that?
- [36:09]
Todd Graves
Yeah, yeah, yeah. Look, we bought a couple of cheap suits and. And went to office Depot True story. And bought briefcases because, you know, we had seen businessmen and women with briefcases that looked official, right? So, you know, they had those cheesy, fake, leather, boxy briefcases with the brass combination locks. You remember those?
- [36:30]
Guy Raz
Yep.
- [36:30]
Todd Graves
Oh, man, they were iconic. You know, and so we went and we went and saw every bank in town. You know, we'd walk in and, you know, there'd be a loan officer there, you know, he or she. And they were nice enough, you know, and so we walked in with our suits and I had a briefcase, Craig had a briefcase, and we would put it on their desk sitting across from in our chairs, and we would open the brass, brass combination lock like somebody was going to steal our chicken finger business plan. And look, they were all nice enough to us, you know, they were, they were nice. We went through it. But the common answer was, you know, this is not something that our bank would, would lend towards. You know, the restaurant business is, you know, it's 90% failure rate. And, you know, you know, franchises are the things that work because they're proven systems. You both have college degrees. Why don't you go work in the industry and get some management experience and save some money and then come back and see if you really want to do this and really want to start your own business.
- [37:31]
Guy Raz
In the meantime, were you experimenting with chicken finger recipes in your apartment? Were you frying up chicken for friends and trying out different spices? Because you had the idea for the sauce and the chicken and the fries are another thing that's crinkle. But I mean, were you doing that?
- [37:49]
Todd Graves
No, not really. My focus was getting the money. Get the money at that point, work with the vendors to tweak the recipes to get a better product and do that. For example, like doing the business plan. I asked about spices. I thought it'd be just simple, right? I need poultry seasoning. I thought it'd be simple. It's like, well, there's six grades of poultry seasonings and one cost 100 bucks a box and one cost 500 bucks a box. And I was like, oh, my goodness, I didn't know this. So I knew I'd have to come back later to be able to tweak with the vendors, which I did.
- [38:20]
Guy Raz
So the idea was you would have this kind of recipe that you would come up with, or you would have a flavor that you liked. The third party vendor could make it and then deliver it frozen or something like that, and then you would fry it on site.
- [38:32]
Todd Graves
No, no, no, no, no. I wanted to do Everything that I could from scratch in the restaurant. Yeah, 100%, you know, 100%. So I wanted to get the raw chicken right, but I need my vendors to tell me why that chicken tenderloin was the absolute best part of the chicken. Right. I needed my vendors. I knew I wanted to crinkle, cut, fry, but I need my vendors to tell me the difference between, you know, a grade AAA versus a grade A. Because I grew up cooking, but I didn't know the fundamentals outside of Cajun cooking, you know, as far as other restaurants.
- [39:01]
Guy Raz
But no, but there was no point when you were building the business plan where you were just like. Like, frying up chicken fingers for friends to say, hey, you gotta try my chicken fingers. They're amazing.
- [39:09]
Todd Graves
So a friend reminded me, you know, a couple of years ago, do you remember when you were doing different sauces that came up Cane sauce. And you had us all try the cane sauce? Because, yeah, you had a bunch of us in there, and we were trying the different ways of the cane sauce. And so what I remember going over was I wanted a flavorful sauce, but I didn't want a Cajun sauce. Right. I didn't want this to be a regional Cajun thing.
- [39:36]
Guy Raz
Cajun sauce was gonna have cayenne pepper for sure, right?
- [39:40]
Todd Graves
Exactly. We would have cayenne pepper in it. And everybody was like, you're gonna put some cayenne in that? I'm like, no, no, no. Black pepper is. And that's no secret. Cause you can see the black pepper fakes in there. And they said, you know, black pepper is gonna be that base on that. I don't want this to be Cajun. This is a chicken finger restaurant. And they're like, well, man, but it's Cajun. I say, well, look, when you order your pepperoni pizza, it doesn't come with, you know, with cayenne pepper. And, you know, and doing that does it have a good point?
- [40:07]
Guy Raz
Okay, so the banks are saying, you're not gonna get the loan from the banks. You don't have access to family money, so you have to come up with some money to make this happen. How much did you think you needed to raise?
- [40:21]
Todd Graves
Ballpark was 100 to $150,000 was what? In my mind, I thought we could start it for. And that's without knowing the location. Craig still has one semester left in college. I'm bartending. We have a business plan, but we just got turned down by every bank in town. And so I'd put the word out there by my friend Group. I have to raise a bunch of money to open my chicken finger restaurant. And y'all know how to make some quick money fast. I'm willing to work hard and do anything. Luckily, through a friend of a friend, you know, I got to meet a guy named Carrie Travis, who was a foreman for Louisiana Cruise, doing turnaround shift work in refineries. And he said, well, that's great. That's great. You go for your dream. Are you, you know, are you willing to do some hard work? Yes, sir. You know, are you willing to work 90 to 100 hour weeks? Absolutely. Seven days a week? Absolutely. Okay. You seem excited, seem like a hard worker. We can teach you that business. It just, it takes a certain person that wants to work that hard in those conditions in their finery. And luck would have it, I got work doing turnaround, ship work. The title was boilermaker in refineries in Los Angeles.
- [41:31]
Guy Raz
Wow. So what did you do? I mean, you had no idea what this meant? I mean, you grew up in Louisiana, it's an oil state, but it doesn't mean you know anything about oil. What did the job actually mean? What did you do?
- [41:41]
Todd Graves
Yeah. So, you know, I had to learn all of it. I had no idea what being a boilermaker was. All I knew is you were going to make a bunch of money in a quick period of time and work my butt off. You know, that was it and a little bit dangerous. So what happens is when, you know, when they shut down a certain section of their refinery to bring it up to date, Right. You know, these things have been running for many years. And so they'll be to be safety upgrades, technology upgrades, just replacing and doing preventative maintenance. So they bring in boilermakers, which. I love that term, Boulder makers. I thought that was cool. Cool, cool term. You go in and do this work and look, I learned great things like, you know, cutting things with a torch. You know, like you have this hot rod you're holding with basically battery cables going to a lot of juice, and you can slice through metal like butter, you know, and we cut these things out in pieces and then bring them out the tower.
- [42:33]
Guy Raz
It's hot, right?
- [42:34]
Todd Graves
Hot as all get out because you're wearing these complete jumpsuits, right? You got your hard hat on, you got your goggles on. And if you were in there, like I, I picture, if you lit the whole thing on fire and you're walking through, that's kind of what hell would look like, you know, it's just. It's a pretty hard work environment. But at 90 hours a week. You get quite a bit of overtime.
- [42:53]
Guy Raz
This is 1995. How long did you do work as a boilermaker?
- [42:59]
Todd Graves
Yeah, it was probably about a four month period of time.
- [43:03]
Guy Raz
And presumably while you were working in Southern California, this is when you first encountered In N Out Burger.
- [43:08]
Todd Graves
Absolutely. You know, when I went to In N Out Burger for the first time, I never even heard of In N Out Burger because, you know, it's a West coast thing.
- [43:15]
Guy Raz
Yeah.
- [43:15]
Todd Graves
I'm a Louisiana boy. And when I went out, people talked about, you know, man, you got to go buy In N Out Burger. Great. What do they have? Burgers. Great. What else? Fries. Is that all? No, they got shakes, you know, and I'm like, oh my goodness, that's, that's what I'm trying to do at Cane's. And man, and I saw the lines, the lines and tasted that burger and God, it was amazing. And they could serve it quickly and then learn the company history. Since 1948, they've been doing this. So if you imagine as all the other burger competitors, they all opened around them and they added everything and did everything. But since 1948, in n out Burgers been doing the same thing and doing extremely well. And it gave me just a lot more confidence on your concept, knowing that my concept would work. Yeah. And I wish I had. As an example, I wish I could have said, hey, look at it. Out Burger since 1948, and they're still doing great.
- [44:08]
Guy Raz
So you spent about four or five months working in refineries. And do you remember how much money you earned over that five month period?
- [44:15]
Todd Graves
You know, I want to say going out working in the refineries as a boilermaker, I think I made around 25, 30 grand is what I made, which is big money for a 23 year old kid.
- [44:27]
Guy Raz
And so I guess after four or five months of doing this, from what I understand there was a fellow boilermaker who said to you, hey, if you want to make big money, you should go to Alaska and go to a fishing boat. Is that the story?
- [44:41]
Todd Graves
Yeah. You know, everybody, bowler makers give each other nicknames. It's actually, there's great camaraderie among the group. This was the first group of people that believed in my dream. They were encouraging.
- [44:52]
Guy Raz
You would talk about it with everybody?
- [44:54]
Todd Graves
Yeah, everybody. They all knew all these bowler makers working in this finery, knew I was out working these jobs, them because I had this chicken finger dream. And they were all encouraging and, you know, and everybody gives each other nicknames. And so the group said, hey, have you met Wild Bill Tol, are you? And you know, like I said, everybody's got a nickname. I'm like, no, which one's Wild Bill and why should I talk to him? He said, well, he's the big guy over there and he does Alaskan fishing and you can make more money there anywhere else. And so I went and talked to Wild Bill and told him what I wanted to do. And he had heard my story, but he's like, look, this is real dangerous work. It's commercial fishing for sockeye salmon, gill netting in Knock Neck, Alaska. So about the point, when I was wrapping up my bowler making career, Craig was graduating from college and I called him on the road. I said, hey man, I met this guy, Wild Bill. He's like, wait, what? And I'm like, yeah, yeah, I'll tell you about him later. But he spends his summers commercial fishing in Alaska. And he says, we can make a bunch of money real quick, but it's going to be really hard work and it's very dangerous. And Craig said, okay, let's do that. And so we flew into Anchorage, Alaska. Then we flew to King Salmon, Alaska in a little plane. We hitchhiked to Natnak, Alaska, and we went to Tent City where they had a little area where you could, it was on the tundra where you could put your tent. And then proceeded to go and talk to every boat captain in the whole fishery to get a job as a greenhorn, which is a rookie, which is very hard to do.
- [46:27]
Guy Raz
Yeah. But you guys boat both do wind up getting jobs to work on fishing boats that summer night. I mean, I should mention this is super dangerous work.
- [46:36]
Todd Graves
Right.
- [46:36]
Guy Raz
I mean, I actually looked this up because that summer that you were actually on a fishing boat in Alaska, there were six deaths. Six deaths among salmon fishermen that summer of 1995. And it's like non stop work. Right. It's like you're all, you are fishing all the time.
- [46:53]
Todd Graves
Yeah. You know this, the salmon fishing trade at this point too was just incredibly lucrative. And what we were fishing for was sockeye salmon.
- [47:01]
Guy Raz
Yeah.
- [47:02]
Todd Graves
Which the Japanese bought, I want to say like 95% of it because the quality of the meat. So stakes are high and it's very competitive. So what captains, motivated captains would do is they play chicken. And I don't know if it's still okay to do that, but man, it was back then and man, it would hit other boats. I saw other boats ram other boats. You saw their boats sink. Actually, the boat Craig was on, the captain rammed a boat and it did sink. Wow. And it's a. It's. It's mostly dangerous because you're so tired. Yeah, you're so tired. So you get. You get careless, right? So someone gets thrown out with a net or someone doesn't get their footing when they're in seas and they break their arm or, you know, we're getting these reports, someone gets scalped because the net thing broke off and went over, or someone rammed your boat, or, you know, I saw two boats getting nets caught up, and someone threw a can of pork and beans and hit a guy on a boat. I mean, just crazy stuff.
- [47:56]
Guy Raz
That's totally nuts.
- [47:57]
NerdWallet
But clearly you.
- [47:59]
Guy Raz
You had a single track mind here. You knew that this is what you're going to do, that season ends and you've got around, I guess around $50,000, right, that you've saved.
- [48:08]
Todd Graves
Yeah, yeah.
- [48:08]
Guy Raz
A lot of money. And you go back to Baton Rouge and presumably was this. It's still not enough to launch the business though, right?
- [48:18]
Todd Graves
No, we didn't have enough, and we knew we wouldn't have enough coming back, but we knew it could be a great start. And before we went to Alaska, we had located a great piece of property, I mean, absolutely perfect for our business at the north gates of lsu, where I always wanted to open up. Actually, a good friend had told me this place came open, and we met with the realtor, a guy named Red Reynolds, rest his soul. I mean, what a great guy. And he bought into our. More than anything, he bought into our passion. And so he said, hey, I know you boys will work as hard as you can to make this place work. And the place had turned over so many different times because these different college entrepreneurs would start something and then it wouldn't work. And then the last tenant was a bike shop that's actually still in business, but they moved next door, Right. So we had the place. And so after I finished the commercial fishing Alaska, Craig had went back and I got a job real quickly working as a sport fishing guide, which was just amazing work. You know, it was Alaska. It was incredible. The salmon run, taking fishermen out, you know, there and fisherwomen, women out. There was bears and eagles, and it was amazing. And actually, Craig called me and said, hey, Mr. Red says you need to get your ass home. And I was like, are you kidding me? He goes. He goes, yeah. I said, tell him I'm making money. He goes, no, you're not making the same money you did when we were commercial fishing. So he said, get on back and open this thing up.
- [49:41]
NerdWallet
Right.
- [49:41]
Todd Graves
So. And I got on a plane that day and flew home. Wow.
- [49:44]
Guy Raz
So this, this location became. Becomes available.
- [49:46]
Todd Graves
It's.
- [49:47]
Guy Raz
It's, I guess presumably the fall of 95.
- [49:50]
Todd Graves
Right.
- [49:50]
Guy Raz
Or early, early winter maybe when you're back in. In Baton Rouge.
- [49:54]
Todd Graves
Absolutely. And I knew this site. We had it, but we didn't have the money to get it yet. And so what we did had, though, we had a year into this project, and I had originally talking to business people, you know, about it. Would you ever be interested in investing in this? And people started to listen. Now it's been a year. It's been a whole year. And you've stayed with it. And now, you know, you went to Bowler making refineries.
- [50:18]
Guy Raz
Yeah.
- [50:18]
Todd Graves
Craig went commercial fishing, Alaska. Like, I think maybe you'll make this thing work. Two of my investors were Bowler makers that I had worked with. Right. They. They live. This is like $10,000 investors, $5,000 investors. One was Mr. Red Reynolds, our realtor. Another one was a high school friend that actually worked Bowler making with me out there. He said, you're going to make this thing work. And then my bookie, of all things, my college bookie, he paid cash.
- [50:45]
Guy Raz
So did they get equity?
- [50:47]
Todd Graves
Yeah, absolutely. The preferred shareholders got equity into that first location. Actually, as we continue to grow, they wanted to be along for the ride. So we carried them over in a capacity and still have most of the original shareholders. A lot of them got out different points of growth, but we still have a handful of the original investors. And then we were able to talk to an SBA lender and I didn't know what that was originally when we went to the banks and they're like, if you raise $90,000, we'll give you a $50,000 loan. And you remember that number. I had about 150 in my head, and I'd spent a bunch of the money to live on. I was like, bingo.
- [51:25]
Guy Raz
Wow. All right, so you raised the money, you get the SBA loan, you've got the location. And I think it was, it was. It had been like a former bike shop. Is that right?
- [51:36]
Todd Graves
Yeah. Look, this location was ideal and cheap rent. I think it was like 1500 bucks a month. And I ended up getting like, after options, like 50 years on the deal. It even had a billboard on the location. It was just ideal. But it was a good deal for the landlords because the old building was dilapidated, the old parking lot was dilapidated. And look, we were. We were going in and doing all these improvements. And so you got a 50 year lease with, with options? Yeah, absolutely.
- [52:00]
Guy Raz
All right, so you get a bike shop. How do you convert that into a chicken finger restaurant? We got a fryers, you've got to have a counter, you've got to have a drive thru window, you've got to have not that much stuff, but you still need a bunch of stuff. You got to turn into a restaurant and, and you've got 140 grand. Was that enough money to convert it into a restaurant and also like set up a drive through?
- [52:20]
Todd Graves
Barely. Barely. Barely, barely. But this was great. This is the best part about it because, you know, I didn't know anything about construction, but I could learn, right? And I could do it cheap. I think we originally got a contractor and got a bid and it was like over $200,000. Like we don't have that. And so I finally met a really nice man who said, look, I'll help you. You can do the work. You can. I can pull in experts when you need it. I knew a little bit about, you know, industrial construction with working as a bowler maker, but nothing about regular carpentry, electric, you know, plumbing, all that good stuff. But I learned and I learned it and so, you know, we got a jackhammer and jackhammered off the bag, concrete. We learned how to do plumbing, we learned how to help out electricians. You know, we could save, save money and get actually a real electrician to do things, but we could be the helper putting the pipes in, doing this stuff.
- [53:10]
Guy Raz
I mean, so you're like completely gutting and opening, trying to open this restaurant. And by the way the name was going still at this moment was going to be Follies Chicken Restaurant.
- [53:19]
Todd Graves
Well, so we kind of got all Follies and we kicked around the idea of calling it Sockeye's Chicken Fingers because of the salmon that we fished for in Alaska. Luckily we were telling a group of friends and one of them told us, hey, we think that's a terrible name.
- [53:36]
Guy Raz
Sockeye's Chicken Fingers.
- [53:37]
Todd Graves
Yeah, they're like, it makes no sense.
- [53:39]
Guy Raz
Salmon. Salmon, Chicken Fingers.
- [53:41]
Todd Graves
Exactly right.
- [53:42]
Guy Raz
I don't know about that.
- [53:43]
Todd Graves
I'm like, well, look, we gotta get some signs made for this place. And so, you know, that's the best cracking I got. You got a better idea? And I had a yellow lab then it was Raising Cane the First.
- [53:53]
Guy Raz
Your dog was called Raising Cane the First?
- [53:55]
Todd Graves
Yeah, well, he was just Raising Cane. He was the first.
- [53:58]
Guy Raz
Was he named after the Brian De Palma film Raising Cane, the horror film?
- [54:03]
Todd Graves
No, my sister named him.
- [54:06]
Guy Raz
See, I didn't know this. Until I did research. But raising Cain is an expression. It means, like, to cause trouble.
- [54:10]
Todd Graves
Yeah. You know, raising a little hell, having a little fun. And so she thought that was a good name. And the name stuck. And, you know, anyway, so when we were doing construction, I would have Kane out there knocking around. People in the neighborhood knew the dog, you know, and brought it around. But, you know, we. All of a sudden, we had a. We have a. Not only a good name, we got a good mascot for the restaurant, and people in the neighborhood knew the dog, and so that stuck.
- [54:31]
Guy Raz
All right, 1996. You finished the renovations. I mean, I'm just curious. You. You were going to make everything in house. So you were going to have the chicken marinating in buttermilk or tenderizing, and then you're going to hand batter it and fry it in the restaurant?
- [54:46]
Todd Graves
No, we wanted to start with some raw products. So, number one being chicken and knowing that the absolute best and most tender white meat part of the chicken is the chicken tenderloin.
- [54:57]
Guy Raz
Yep. Under the breast, you can cut it off, right?
- [54:59]
Todd Graves
Yeah. You literally put it. And it's a whole muscle product, and so it's perfect. And we knew what size we wanted. And then they'll talk about what size bird that comes from. And I always went for the highest quality, and that paid off because people will pay for quality now. I didn't price my menu accordingly, and I didn't make much money until I finally adjusted our pricing, but always went for the higher quality. And what we could do in house, like our sauce, I knew we could make that in house. Our garlic powder, I knew we could make that in house. And that freshness of making your sauce in house, we evaluated that versus having a place make it for us. And putting in a little packet that's vacuum sealed, that you have a peel off was night and day to us.
- [55:40]
Guy Raz
And by the way, I think right around this time, you also started to date the woman who would become your wife, Gwen. And what I love about the story is that from what I read, she was actually a McDonald's franchisee. Is that right?
- [55:57]
Todd Graves
Yeah, she sure was. I met Gwen, although we went to high school together. We didn't really know each other, but I met Gwen and I told her the story about, you know, I'm gonna open this chicken finger restaurant. And she lived by lsu, too. She goes, oh, you're the guy that's doing that. She's like, good luck. And I'm like, what do you mean? And she was, like, playing with me. She goes, look, I've grown up. My parents have been McDonald's franchisee my whole life. She goes, I'm gonna franchise McDonald's. I mean, she grew up flipping burgers, right? And she's like. And I go with the sure thing, McDonald's franchise. She goes, you're crazy. You're totally different than me. You're an entrepreneur with this crazy idea, but good luck to you. And so I asked her out that night, but I said, I don't know when I can actually take you out on a date because you're busy, you're.
- [56:36]
Guy Raz
Working all the time.
- [56:36]
Todd Graves
Exactly. And so, anyway, I eventually was able to take her out one night, and we really hit it off, and it was fun, because I tell you this, because we got to talk about things like how do you salt your fries? How do you motivate your crew members? And we also. She understood the business and appreciated how hard it was. And so there was never a why are you working so much? Or. Or things like that. I mean, look, she would open up for breakfast, and we would cross paths because I closed down for late night. You know, there'd be weeks we wouldn't see each other. But, yeah, she. She had eventually opened her. Her franchise in Brulee, Louisiana, across the river here in Baton Rouge, and was a really successful franchisee for McDonald's.
- [57:17]
Guy Raz
All right, so you got this restaurant. You've got the name, You've got all the things in Place. It's 1996. You built it out. You're ready to open. Do you remember what was the date that you open? Opened.
- [57:28]
Todd Graves
Yeah. August 28th, 1996.
- [57:31]
Guy Raz
All right, so hot day in a hot summer in hot, sticky, humid Baton Rouge, Louisiana.
- [57:39]
Todd Graves
Cut it with a knife, and you're.
- [57:41]
Guy Raz
Serving hot chicken fingers and hot French fries with cold drinks. And you open the door, and I'm sure friends and family know, and was it crazy? Was it a mad rush?
- [57:51]
Todd Graves
No, actually, quite the opposite, because we had all our friends and family come, you know, the days before opening because we needed to practice, right? We needed to practice. Come in and do tweaking. Final recipes. Okay, try this sauce. Now dip your chicken fingers in this sauce. You know, that sort of thing. And so they've already tried it. They're. They're actually. They've had their chicken finger filled for a while. And I couldn't tell, you know, the LSU community when we're going to open because, yeah, I didn't know when we were gonna get the registers program. So literally, I'm like, all day, they're working on these things. And I know, hey, I got the fryers ready, drive thru's working, you know, when are we gonna open? And so finally sometime at night, it might have been 10 o'clock, whatever it was like we opened.
- [58:32]
Guy Raz
You opened at 10 at night.
- [58:33]
Todd Graves
Yeah, yeah, yeah, yeah.
- [58:34]
Guy Raz
But one day you were just like, let's open.
- [58:36]
Todd Graves
Because we finally got the registers work.
- [58:38]
Guy Raz
No flyers, no like advertisements, nothing. No like, hey, grand opening, no ribbon cutting ceremony, nothing.
- [58:45]
Todd Graves
And you know how we got people nothing. I walked out front and you know, it's a bustling college area and started waving customers in, hey, we're open, we're open. So a few customers started kind of trickling in. But when the bar crowd got done at 2:00.
- [59:01]
Guy Raz
Oh yeah.
- [59:03]
Todd Graves
Then people started coming.
- [59:04]
Guy Raz
They're hungry.
- [59:05]
Todd Graves
Yeah, they're hungry.
- [59:06]
Guy Raz
So you had to be open late because they want fried chicken.
- [59:10]
Todd Graves
Yeah. So they started coming and you know, mostly dine in because there's people walking from bars and they wanted to continue their night. But a couple of people in drive through, through. And then word started spreading and then we started picking up and I couldn't get at physically get out of the restaurant because I had to be frying chicken. You know, we were open, you were.
- [59:29]
Guy Raz
The guy frying chicken and Craig was at the register.
- [59:31]
Todd Graves
Yeah, and vice versa. We would just kind of, you know, work wherever we worked. And we were open from 10:30 in the morning until 3:30 at night, you know, seven days a week. And so we had hired only about a dozen crew members. We were really understaffed. We didn't really know what we're doing. And they were all working just crazy loads and we had a nap schedule. I actually got an apartment right behind the original Cane's upstairs. Luckily it came open right before we opened and we would just take different breaks and go nap. And by the time you close the restaurant at 3:30 and you clean everything up, you'd be about 5:30 and they need to get there back about 8:30 in the morning to open up again. So I couldn't get out there and do advertising and things like that. But luckily it spread around LSU and our story got out about who we were and what we were trying to do.
- [60:20]
Guy Raz
All right, you achieved your dream. You got your restaurant, you got your college hangout, late night, post partying restaurant. This was your dream. You're like 24, you've achieved it, you're done. But of course that was not the end of the story. There was going to be a second store. And when did you, when did you come to the realization that actually this was not a one off, one location business?
- [60:47]
Todd Graves
You know, seeing the popularity with the students didn't surprise me. I knew they loved the concept. I knew they'd love it. I was excited and actually surprised on how quickly that first semester we were open of our volumes. You know, we really did well. I mean, look, our first month we made 30 bucks in profit. 30 bucks in profit. And when I told people, they were like, oh, I'm sorry, that's all. I'm like, that's all. I mean, that means I'm positive. I mean, I could pay my crew, I could pay my rent, you know, I could pay my vendors. Like that's amazing. Like, y'all don't understand. This doesn't happen in startups. You know what I mean? And from there, the next month, we made more money. We made more money. And, you know, this went on. For me, it was that first semester and I just really got the bug all of a sudden started realizing how to be a better leader, a better manager. And I started hiring more people and I'm like, wow, we can do one on the other side of campus. It's a different traffic flow and it's there. And I started thinking of that, that second semester, it is now 1997. Early in that year, we had been open three, four months. And then I started thinking about growth.
- [61:57]
Guy Raz
Now here's a question I have about the quick service restaurant business. From what I understand, if you open up one location, so called fast food restaurant, you know, mom and pop kind of place, it's really hard to make significant money from just one location. You actually have to have more and multiple locations to really begin to create an economy of scale and make money. Is that right?
- [62:22]
Todd Graves
That is, that is so. Right. Yes, absolutely. You know, quick service restaurants make tiny margins on large volumes. It's just what it is. And look, you can have a whole family work in a restaurant and I know a lot of great family restaurants that do that. So you lower your labor cost and everybody kind of lives out of it and you expense things out of it. But it's not a way to garner wealth. When you open multiple locations, you actually get buying power, right? You get, you know, you're ordering more product so your prices go down, your margins get better. It's a really tight margin business.
- [62:55]
Guy Raz
All right, so you decide to start a second location. And, but, and how were you able to do that? I mean, did you, did you have to get another loan to open that up or did you have enough cash flow to take that money and open the next location.
- [63:07]
Todd Graves
Well, you know, I knew I wanted to design a building and do it, and so I went back to those original SBA lenders that lent us that $50,000, and I told them, hey, I want to do a new location on their side of campus. The numbers were good, and we were able to actually go in, get a SBA loan for the same lenders, and actually buy the piece of property, build a building from a ground up, and open up just 18 months. Just 18 months after we opened the first location.
- [63:38]
Guy Raz
Wow.
- [63:39]
Todd Graves
Yeah, I mean, you can imagine. Just in short order. I mean, I opened the first restaurant when I was 24 years old, and now here I am out opening up when? Before I turn 26 years old.
- [63:48]
Guy Raz
Wow.
- [63:49]
Todd Graves
And look, brand spanking new equipment and, you know, brand spanking new furniture and nice landscaping and everything. I mean, you talk about feel like the Taj Mahal to me.
- [63:59]
Guy Raz
Well, here's the thing that I did not know until I started doing this show seven years ago, which is, it sounds amazing when you go from one location to the second in the food business, but actually, oftentimes that's the death knell. That's what kills businesses when they open the second restaurant because they get in over their heads and then it takes the entire enterprise down.
- [64:19]
Todd Graves
Man, it's so true. There has never been a harder growth period at Raising Cane's over the past 25 years.
- [64:27]
Guy Raz
Then going from one to two, going.
- [64:29]
Todd Graves
To one to two. Never been a hard growth period at Raising Cane's and going from one to two.
- [64:32]
Guy Raz
What was so hard about it?
- [64:33]
Todd Graves
Well, you know, you get excited about it and you're like, wow, we're going to grow. And then you grow, and then you realize, wait a minute, you know, I can't be at two places at once. And so I lived at that first restaurant. Now I got a second location and I have to split my time. I literally was like, holy cow, now I got people and I got new managers. They're not trained well enough. Then all of a sudden, I have double, double the workload and this. When I opened that second restaurant, man, it was really busy. You know, it got frantic. It got really frantic because, you know, my manager would quit. That means, wait a minute, I don't really have any more time in my day, but I have to cover all those shifts until we can, you know, hire a new manager or train a new manager. And I want to say I learned my lesson then, but it took me years to really learn it. To not stretch myself through growth. But I think that's what happens when people grow one to two. You know, it's not like their problems double it. Like it multiplies, you know, exponentially.
- [65:32]
Guy Raz
When we come back in just a moment, how Todd deals with yet another blow. Just as he's adding that second restaurant, he loses one of his most important assets, his partner, Craig.
- [65:44]
Todd Graves
Stay with us.
- [65:45]
Guy Raz
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- [67:37]
Guy Raz
Hey, welcome back to How I Built this. I'm Guy raz. So it's 18 months after the first raising, and Todd is dealing with the growing pains from doubling the business. He now has two restaurants located at opposite ends of the LSU campus.
- [67:53]
Todd Graves
We were very busy at the second restaurant, and the first restaurant was busy. So sales were there, profitability was there. It was just in the. In the understaffing. And with people quitting and not showing up, I would burn out more crew members who would. And it was this cycle, you know, of what was going on. And that's when Craig came to me and said, hey, man, you know, whenever you can, I want you to buy me out of the business. Which was, you know, it hit me as a shock. And I'm like, craig, Craig, what are you doing? Yeah, yeah, this is working. Like, we work so hard. I mean, you fished in Alaska for this from one to two. You put in all this work and effort, and it's actually working. We're cash flowing. And he said, no, no, I know that, and I'm very proud of that. But he says, the restaurant business isn't my dream.
- [68:42]
Guy Raz
He was burned out.
- [68:43]
Todd Graves
It's not my deal. You burn out. And he says, look, it's just. It's not what makes me happy. He said, I love the starting of the business and all the business side of that. And he said, like, for example, Todd, if I get a night off, I'll go home and read, like, the Wall Street Journal.
- [68:57]
Guy Raz
Yeah.
- [68:57]
Todd Graves
He goes, you'll go home and work on better ways to train crew members or better ways to do the sketch. And he says, you're. This is what you love. And Craig's just one of those people doesn't measure his success by the thickness of his wallet. You know what I mean? He's like, I want to go do something else. And he stayed with me because he said, I know I'm about to be here a while because we're so understaffed, and we gotta get it right. But I mean, for months. For months. And then when I got staff, but he went back and got his mba, I was actually able to hire Craig back years later to do. To help us be like, CFO and technology and all kinds of other parts of the business.
- [69:31]
Guy Raz
He like, 1999, about two and a half years in, he steps away. You buy him out, and you're on your own without your partner and friend to run this thing. I think at that point, you had at least two locations, and we're looking to open a few more in and around Baton Rouge.
- [69:53]
Todd Graves
When Craig left the business, I went through a period, and I don't know if it was depression or if it's a fog or how to really describe it. It felt like I had a bucket over my head full of water. It was just this. Wait a minute, it's just me now. And this might have lasted a couple of months, and it was like a fog. And I go to work, but I was just not really there. And all of a sudden, I Popped out of it. It was a couple of months in and then I popped out of it. And I was like, you know what? I love this business and I want to grow it. And the reason I wanted to grow outside of just, you know, seeing me grow teams and what we could do in the community, it was the fact that the south gates of LSU location, it wasn't just students that were coming in. I mean, they come in, you know, late night, late lunch and things like that. I was having business women and men come in during lunch. I had like T ball teams on Saturdays. I had churchgoers on Sundays. I mean, I was like, wait a minute. This concept I thought was just a college concept. Everybody's liking it. I mean, this thing can grow. I can be on different corners, you know, I can be like McDonald's, you know. And as luck would have it again, there was a man, Dr. Hill, in Baton Rouge, one of my good mentors, and he had started like a double drive thru burger chain. Like rallies and checkers, double drive through.
- [71:13]
Guy Raz
Meaning you pull up and they come out.
- [71:15]
Todd Graves
Yeah, no dine in. It's no dine in. It's just like two lanes of drive through going different directions either side, these little tiny buildings. And then they had like four locations left with their best and with their best crews. And they said, hey, look, we want to be in the rental business, you know, we want to be mailbox money. We're not restaurant operators. You got a great concept. You want to take over these four locations. And at first I was like, wait a minute. Like that looks to me like it's a, like if you did a movie making fun of fast food, you know, it'd be these little buildings, right? It's like, that's not my crew. That's not our culture. But then I was like, wait a minute. Like, it absolutely is a great way to grow. So I talked to my team and we did it and we, we opened four restaurants in four months. We'd gone from, wow, two restaurants, four us in four months. And then the next month, on the fifth month, we opened a mall food court in Baton Rouge at the Mall Louisiana. Because I wanted to prove that we could work in mall food courts as well. So that was five restaurants in five months.
- [72:14]
Guy Raz
So once you're in and around, you're all over Baton Rouge. Now, at some point, within that sort of first three, four year period, did you get people coming up to you saying, hey, I'd like to. Can I franchise this thing? Can I start a location?
- [72:29]
Todd Graves
Yeah, like crazy, right? Because they could see the lines at the restaurants. They loved the products. So people love the concept, and they wanted to franchise. They wanted to bring it back to different areas. But look, this is my baby, you know, it was absolutely my baby. So I'm like, man, I absolutely don't want to franchise to people that aren't operators. Like, if you're not an operator, if you're not in this business, you don't realize how hard it is. But I did see franchising as a great way to expand the concept with experienced operators.
- [72:56]
Guy Raz
Yeah. When did that happen? I mean, we've done many interviews with different industries in the past. Five guys who did. Five guys on the show a few years ago. That model, the franchising model, really is the sort of clearest way to scale a business rather than try to own and operate every single business, every single location.
- [73:18]
Todd Graves
Yeah, I mean, that's what I thought. I thought that, too. That was my original plan. And a couple things happened, and these were some hard lessons to learn when I started all this. So. So my first expansion out of the state of Louisiana was around 2004. 2005 to Dallas, right? Yeah, Dallas and Houston. And this is eight, nine years into it. And we got our butt kicked.
- [73:41]
Guy Raz
You got your butt kicked in Texas?
- [73:43]
Todd Graves
Oh, yeah, absolutely. Because, look, I just thought, and this was being cocky, that we'll just open a location like we do in Louisiana and everybody will come. Yeah, of course. And. And not the case. Not the case. Louisiana had that original LSU start, and so people around the state are all fans. They knew about it. Right. Well, you open in Dallas and Houston, and I'm not open by the campuses there. I'm open up in Louisville and off of Westheimer. And expensive leases and also putting inexperienced managers. They never opened in new markets. And I put them there. I didn't support them. I didn't have a conference marketing plan. And, man, we lost some money. I mean, we really lost some money. Yeah, absolutely.
- [74:22]
Guy Raz
Because people just didn't know what it was. It was just another thing. And cars would drive by, people would pass it. They had no idea what this was.
- [74:28]
Todd Graves
Yeah, they saw a big fancy building. I mean, we're building nice facilities now with this sign that says, raising Cane's chicken fingers. And they're like, huh? And those were some hard lessons learned at that point because, you know, I basically got too confident. And then we had to restart over and I had to go into those communities, help the management better. I actually replace some management because they're different skill sets. Bring them Back to our restaurants, build comprehensive marketing plans and really go after getting those restaurants to where they actually could cash flow and stop losing us a lot of money.
- [74:59]
Guy Raz
Once, once you started to franchise, to sort of pursue the franchise model and you've got people, right, paying you franchise fee and then they open a raising canes shop, there's a risk there where you do start to potentially lose control over how they're gonna operate the business. I mean, there must have been some tension early on with operators, owners of some of the locations who weren't doing it to your specifications.
- [75:29]
Todd Graves
Yeah, you know, franchisees, it's tough because look, they're putting their money into it. Their belief, this is their business, that you're franchising to them. And you know, they have a lot of say. And you know, if you talk about the entrepreneur that built this from the ground up, who wants it to be done perfect, I mean, I'm a perfectionist on the deal. There's going to be tension. But yeah, we had some knockdown drag outs, right. And they saw some things different ways now. Not on standards, not on quality of food or taking care of our crew and giving back communities. But look, no, we don't need to do it that way. We don't need to be open those hours. And you only have some much say if you say we recommend this price for your meal. But they're like, no, I like this price better. You can't make them do that. And, and that's actually good laws in place, you know, to protect franchisees. But it, look, it does didn't bode well with me. I loved all our franchisees. We've, we've since bought most of them out. But anyway, I had a lot of challenges, you know, with not being able to maintain the control that I like and not being able to go fix their problems for them. And so, you know, it didn't take that long for me to realize that franchising was not the way that I personally wanted to grow. Who I wanted to grow with, I realized at that point was I wanted to grow with our internal, which we call general managers. And I'm like, those are the people I want to partner with and those are the people I want to grow with.
- [76:51]
Guy Raz
Just out of curiosity, what percentage of your restaurants today are owned by the Raising Cane's corporate?
- [76:56]
Todd Graves
Yeah, by me. I'm at like 90. I would say 95%.
- [77:00]
Guy Raz
Wow. So you really are. This is not a traditional franchise model at all.
- [77:07]
Todd Graves
No, no, this is a company owned model. It started off because of all the obvious reasons to do franchising, it just didn't fit with my personality.
- [77:14]
Guy Raz
So as you kind of transitioned from these few restaurants in Baton Rouge, then to Dallas and further out, I have to assume it wasn't banks that were financing this anymore. You had to become. You had to go raise capital. You had to go kind of look for investors, bigger investors.
- [77:31]
Todd Graves
Yeah, you know, I had to get clever, right?
- [77:34]
Guy Raz
Yeah.
- [77:35]
Todd Graves
So, you know, this is a long time ago, and banks were different. And so this is when Craig was CFO of the business. And I was like, craig, how about this concept? We had some angel investors, you know, namely this guy, Dr. Hill became a mentor of mine that had those original fast tracks. But I went to Dr. Hill. I'm like, look, Doc, this location we're going to do, I don't want any other owners in the business. I don't want to give equity. But I'll give you a 15% guaranteed interest rate, simple loan, one pager that's going to be subordinated to the bank. So if you lend me $250,000 and subordinate to the bank, I'll personally sign a note to you. Subordinated loan at 15% and I'll sign it, and you'll have everything. I have half. And it worked great for Doc. He thought it was a great investment. Now, what I would do with that $250,000 with that subordinated note, Craig would then take it to the bank, and we go to these community banks. And basically that subordinated debt was considered equity. So I would do a location. We'd start off this way, and we'd have immediate cash flow because why? Sales were in, but I didn't have to pay my rent for 30 days. I didn't have to pay my food vendors for two weeks, my crew for two weeks. So we got into rapid growth. I was creating cash and generating cash to put in the locations. And I keep going back to these angel investors, subordinated loans and using. We had a network of so many different community banks all over that we were doing. They wanted that business. Now, that is not the proper way to leverage your company. But I was in my 20s, and I was still.
- [79:14]
Guy Raz
You were stupid. You were stupid. But the flip side is you maintained your equity stake. You didn't have to give up too much of your ownership.
- [79:22]
Todd Graves
I didn't give up any. Yeah, absolutely. Wow. But I got the ultimate lesson on financial security when Hurricane Katrina hit, and we had 21 of 28 locations go down in the area, and that cash.
- [79:34]
Guy Raz
Flow stopped, and you owned them all.
- [79:36]
Todd Graves
And we owned them all. And that cash flow I was doing, that came. All the expenses came, and we had zero sales. Now, luckily, we formed as a team and we were able to reopen quickly, and we got out of that crisis. But if I couldn't have, I could have really, really hurt our company because.
- [79:54]
Guy Raz
You basically took out all these different loans, and so you owed lots of people lots of money.
- [79:59]
Todd Graves
I owed banks and I owed angel investors. That subordinated loan. You mean debt to equity. You know, you should have have proper balances in your business, and that helps you get through tough times like a major hurricane. Right. But I levered everything. Now, interestingly enough, I didn't have to go get any capital per se. I didn't have to get any partners. Right. Luckily, I lived through that. But that's when I really learned to balance risk.
- [80:23]
Guy Raz
All right, so about 10 years in 2006, you've got about, I think, roughly 150 locations in the U.S. mainly, I think, in the south and Midwest at that point. I want to ask you about chicken for a moment here, because you had seen 10 years earlier that chicken was going to be this thing that was going to explode, that people were going to kind of move away from burgers to chicken. That didn't entirely happen. You get the five Guys phenomenon. There are burger places all over. But I wonder, did the sort of Chick Fil a Popeyes phenomenon that really began in the 2000s also have that same impact on your business?
- [81:02]
Todd Graves
Yeah, I think so. You know, it's. You know, it rises all ships. So when Popeyes went crazy, the chicken sandwich wars, right. We're not known for our chicken sandwich, but our sales went up 10 and 15% because people were talking about chicken sandwiches and they were coming and buy our chicken tenders, it made people think more about chicken.
- [81:19]
Guy Raz
And the chicken sandwich wars, that was really like KFC Popeyes, right?
- [81:23]
Todd Graves
It was Chick Fil a and Popeyes when it started. Then everybody jumped in.
- [81:28]
Guy Raz
That's what I'm wondering. 10 years in. You are locations in 10 years. Amazing. But at the same time, you're watching all these other competitors introduce new products on their menus. I'm sure people are saying, hey, just do a Cajun chicken version. Just roll it in Cajun spices and offer that. Or offer Cajun fries like five Guys does. I'm sure people said that to you all the time. And how are you able to resist doing those things?
- [81:55]
Todd Graves
Things, golly, if I could. If I could have a dollar for every time someone said, add ranch, add barbecue, add Spicy.
- [82:01]
Guy Raz
Yeah.
- [82:01]
Todd Graves
You know, everything grilled, everything else. And you know, these companies keep adding and changing and different ideas, they lose their identity, they lose who they are. And, and you know, I like to say if you try to be all things, all people, you're nothing to none. You know, it's just, it's, it's you, you spread yourself thin. And so you know, it one thing too that's, that's sad in my industry, it's not. It used to be founder driven. You know, it used to be, you know, all the founders, it was, you know, of their businesses and there's very few now.
- [82:32]
Guy Raz
Yeah.
- [82:33]
Todd Graves
You know, and so when you're a founder, you know, and this is a family business and you care about your crew, like it's a lot of integrity. And so many of these, these, these people in the rest of these restaurant industry in general founders get bought up by private equity. Right. And then it becomes a business transaction. And CEOs come and go and CFOs come and go and marketing comes and goes and everybody's got new ideas and new things and sales this quarter and this, you know, I mean, and all those things. And it's not really built for longevity. It's built for profit, profits and five year turnarounds and selling and all that stuff is. And so if the reason why I never gave in was, I knew it was the right thing for us, you know, it's our one love, it makes us successful and we're going to stick to it and it holds true. We have, we're the second highest average unit vault and all of quick service.
- [83:18]
Guy Raz
Wow. I read something like 3 1/2 million dollars per restaurant.
- [83:22]
Todd Graves
Yeah, we're over 4 million average unit volumes.
- [83:25]
Guy Raz
And I guess to put that into context, I think number one is chick fil A.
- [83:28]
Todd Graves
Number one is chick fil A.
- [83:30]
Guy Raz
And by comparison, McDonald's is like two and a half to $3 million per location.
- [83:35]
Todd Graves
Right, right.
- [83:36]
Guy Raz
I know that you've got something like at the time of this recording, something like 565, 570 locations, maybe more.
- [83:46]
Todd Graves
Yeah, I think we're at 613. We actually just opened seven restaurants yesterday.
- [83:50]
Guy Raz
And growing quickly, like in an average year. How many restaurants do you, do you plan to open now?
- [83:55]
Todd Graves
Yeah, we plan to open 100 to 110 restaurants in the next 12 months and then increase that number.
- [84:01]
Guy Raz
And now when you open them, people know what they are.
- [84:04]
Todd Graves
Absolutely.
- [84:04]
Guy Raz
They're life.
- [84:05]
Todd Graves
Yeah, it's nice having that. You know, we've been in business now for 25 years. So you have people that have actually been to Cane somewhere. You know, we're in, like, 33 states, and they're just fanatical about it.
- [84:14]
Guy Raz
Yeah. When you think about this journey, I mean, I know you were so motivated and you were confident this was going to work, but when you now see what you built, how much of that do you attribute to luck and how much to the work you put into it?
- [84:30]
Todd Graves
So, one, you got to have a great concept, and then two, you got to work your butt off to do it. But you need help along the way, and you need luck, so you need people that help you. These angels come about and help you, and a lot of things come along. That's luck. And you take advantage of it. Right. I mean, naming the dog, right, that was luck. You know, our logo comes off a mural I uncovered in the first location. Renovating it, that's, you know, that was luck to see that. And these are rich things in Cain's history and lore.
- [84:56]
Guy Raz
I mean, looking back at your story, I'm not surprised at your tenacity and, you know, all the things that you did and your commitment and all the people said, don't do this, and. And you were just committed to this. But on the other hand, it is quite amazing. I mean, it is a very straightforward, simple concept. Chicken fingers, fries, toast, coleslaw into a billion dollar business is quite an amazing thing. I mean, do you ever sort of step back and just think, wow, how did that happen? How did I do that?
- [85:30]
Todd Graves
Yeah, pretty much every morning when I wake up. So I'm so blessed that the restaurant was so hard to start. So when you have that, you don't take anything for granted. Our projections this year, we'll do about $3 billion in sales. Right. In opening another hundred restaurants. And these are all great things, but it still gives me that little bit in my gut, that little scared feeling in your gut, that little feeling that keeps me waking up and working late and working hard and doing this. So I'm always blown away by it. I mean, I think the day this doesn't cease to amaze me would be the day I'd have to get out of it, you know? And that day will never come. What's a great quote? When you think you've arrived, it's time to show you the door. Like, I feel like we're just getting warmed up.
- [86:14]
Guy Raz
That's Todd Graves, founder and CEO of Raising Canes. The Graves family still owns a majority of the company, and Todd's wife and kids are all involved in the business. And the family still has a pet yellow Labrador retriever. The current dog is raising Kane iii. And every year from Mardi Gras, Kane iii, like her predecessor, Kane ii, serves as grand marshal of the Crew of Mutts Parade in Baton Rouge. Todd, I'm going to give you. I'm going to give you my secret ingredient for my fried chicken. I'm gonna tell you. I don't think I've ever told anybody. I'm gonna tell you right now.
- [86:54]
Todd Graves
I can't wait to hear it.
- [86:56]
Guy Raz
My secret ingredient for my fried chicken. Ground fenugreek.
- [87:01]
Todd Graves
No kidding.
- [87:02]
Guy Raz
So now that I've told you my secret ingredient, what's in the cane sauce?
- [87:07]
Todd Graves
I knew this was coming. Well, you know the old adage I would, you know, I could tell you, but then, you know, then you know what happens, what I'd have to do.
- [87:13]
Guy Raz
Fair enough.
- [87:14]
Todd Graves
Only me and the dog actually know everything that goes into it.
- [87:19]
Guy Raz
Hey, thanks so much for listening to the show this week. Please make sure to click the Follow button on your podcast app so you never miss a new episode of the show. And as always, it's free. And if you're interested in insights from some of the world's greatest entrepreneurs, sign up for our newsletter@guyraz.com or on substack. This episode was produced by Liz Metzger with music composed by Ramtin Erabloui. It was edited by Neva Graham with research help from Clara Murashima. Our production staff also includes Devin Schwartz, J.C. howard, Kerry Thompson, John Isabella, Alex Chung, Chris Masini, Carla Estevez, Sam Paulson, and Kathryn Seifer. I'm Guy Raz and you've been listening to How I Built this. If you like How I Built this, you can listen early and ad free right now by joining Wondery plus in the Wondery app or on Apple Podcasts. Prime members can listen ad free on Amazon Music. Before you go, tell us about yourself by filling out a short survey@wondery.com survey.
- [88:24]
Todd Graves
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