Advice Line with Todd Graves of Raising Cane's - How I Built This with Guy Raz Recap

Podcast: How I Built This with Guy Raz

Published: 2025-12-25

Duration: 51 min

Summary

In this episode, Todd Graves, founder of Raising Cane's, discusses the importance of consistency in brand management and the strategic decisions that have led to the restaurant's success. He emphasizes the value of choosing the right franchise partners to maintain quality standards.

What Happened

Guy Raz welcomes Todd Graves back to the show, highlighting his impressive journey from working in oil refineries to founding Raising Cane's, which has now become the third-largest chicken quick service restaurant in the U.S. Todd reflects on how surprising it is to surpass a legacy brand like KFC and shares insights into the unique growth model of Raising Cane's, focusing on high average unit volumes rather than sheer quantity of locations.

A significant part of the conversation revolves around the challenges of maintaining quality across franchise locations. Todd explains that selecting the right franchise partners is crucial to ensuring brand standards are upheld. He illustrates this with his partnership with the Al Shaya company in the Middle East, noting that their shared values and commitment to customer service have contributed to a successful long-term relationship. Todd also addresses the common inquiries about diversifying the menu, asserting that consistency is key and that sticking to a simple, proven menu has been a cornerstone of Raising Cane's enduring success.

Key Insights

• The importance of consistency in brand management.
• Choosing the right franchise partners is crucial for maintaining quality.
• High average unit volumes can be more effective than a large number of locations.
• Sticking to a simple menu can drive long-term success.

Key Questions Answered

How did Todd Graves start Raising Cane's?

Todd Graves shared that he had a dream of starting a fried chicken joint in Baton Rouge, but initially faced challenges. To fund his vision, he worked in oil refineries and commercial fishing in Alaska, saving enough money to open his first restaurant. This journey highlights the determination and entrepreneurial spirit that has characterized his path.

What are the key factors behind Raising Cane's growth?

Todd attributes the restaurant's success to its focus on high average unit volumes rather than merely expanding the number of locations. He notes that even with just around a thousand restaurants, the brand has achieved remarkable sales, surpassing even Kentucky Fried Chicken in the quick service chicken market.

How does Raising Cane's maintain quality standards in franchises?

Maintaining quality across franchise locations is a significant challenge, according to Todd. He emphasizes the importance of selecting the right partners, sharing his positive experience with the Al Shaya company in the Middle East. Their collaboration has been successful due to shared values in customer service and brand integrity.

What is Todd's approach to menu diversification?

When asked about diversifying the menu, Todd underscores the value of consistency. He recalls how experts suggested introducing new items to keep customers engaged, but he believes that doubling down on what works—like their simple, craveable menu—has been essential to their success.

What inspired Todd Graves in his business journey?

Todd draws inspiration from successful brands like In-N-Out, which have maintained a consistent, simple menu for decades. He believes that this approach, combined with a focus on quality and customer experience, has significantly contributed to Raising Cane's growth and customer loyalty.