In this episode of the Founders Podcast, David Senra sits down with Todd Graves, the founder and CEO of Raising Cane’s, to discuss his journey from a rejected business idea to building one of America’s fastest-growing restaurant chains. Graves shares insights on obsession, quality focus, and entrepreneurial resilience. Below, we break down the episode with a TL;DW, key takeaways, a detailed summary, and some thoughts.

TL;DW (Too Long; Didn’t Watch/Read)

Todd Graves turned a simple chicken finger concept—initially dismissed by experts—into Raising Cane’s, a chain with over 800 locations and billions in revenue. He funded it through grueling jobs like boilermaking and Alaskan fishing, stayed obsessed with quality and simplicity, avoided franchising for control, and turned crises like Hurricane Katrina and COVID into growth opportunities. Key theme: Fanaticism and long-term focus beat short-term gains.

Key Takeaways

• Embrace Rejection as Fuel: Graves received the worst grade in his business class for his idea and was rejected by banks, but used it to motivate himself.
• Work Extremely Hard to Fund Your Dream: He worked 95-hour weeks as a boilermaker and commercial fished in Alaska to raise startup capital.
• Focus on One Thing: Raising Cane’s menu has remained virtually unchanged since 1996, emphasizing quality chicken fingers over variety to ensure craveability and efficiency.
• Avoid Franchising for Quality Control: Graves tried franchising but bought back locations to maintain operational excellence and avoid inefficiencies.
• Never Sacrifice Quality: He resists cost-cutting that could reduce craveability, prioritizing long-term customer loyalty over short-term profits.
• Turn Crises into Opportunities: During Katrina and COVID, Raising Cane’s reopened quickly, boosted sales, and supported communities, strengthening loyalty.
• Retain Ownership: Graves advises founders to hold onto equity to protect their vision, avoiding partners with purely financial motives.
• Be Fanatically Obsessed: Success comes from relentless passion; Graves still works shifts and dreams about business improvements.
• Build for Longevity: Prioritize survival and compounding over quick exits; Graves has run the business for nearly 30 years without selling.
• Purpose Over Money: True entrepreneurs build what’s natural to them, focusing on love for the work rather than financial returns.

Detailed Summary

The episode begins with Graves discussing his erratic sleep patterns, driven by constant business thoughts—a trait shared by entrepreneurs like Jiro Ono and Michael Ferrero. Recorded at the original Raising Cane’s location near LSU, Graves recounts starting the chain in 1996 after experts dismissed his chicken-finger-only concept as unviable amid trends toward menu variety and healthy options.

Inspired by In-N-Out Burger’s simplicity since 1948, Graves funded the first restaurant through high-paying, dangerous jobs: 95-hour weeks as a boilermaker in refineries and commercial salmon fishing in Alaska, where he hitchhiked to Naknek and endured 20-hour days on boats. He raised $150,000, including from a boilermaker named Wild Bill, and secured an SBA loan after initial bank rejections.

Graves emphasizes fanaticism: “Nothing ever happens unless someone pursues a vision fanatically.” He renovated the first location himself, learning plumbing and construction to save money. The menu’s focus allows for craveable quality—precise chicken sourcing, 24-hour brining, custom bread, and Cane’s Sauce—driving repeat business without veto votes or limited-time offers distracting operations.

He tried franchising for growth but repurchased locations after finding inefficiencies and lower standards (85/100 vs. his 95/100). Financing evolved from subordinated debt to conservative metrics post-Katrina, where 21 of 28 locations closed, but quick reopenings captured market share and built loyalty. Similarly, during COVID, innovations like multi-lane drive-throughs boosted sales.

Graves advises against equity partners with financial motives, urging founders to retain control for authenticity. He credits success to never being satisfied (always raising the bar), loving the work, and building a business natural to one’s personality, echoing advice from Michael Dell and Steve Jobs.

Some Thoughts

This episode reinforces a timeless entrepreneurial truth: Obsession trumps strategy. Graves’ story mirrors those of Harry Snyder (In-N-Out) and Sam Walton—focus on quality, simplicity, and long-term ownership over quick flips. In a startup culture obsessed with exits, his refusal to sell or franchise highlights how retaining control preserves vision and compounds value (Raising Cane’s now valued over $20B). It’s a reminder that crises reveal character; Graves turned disasters into advantages through fanatic action. Aspiring founders should ask: Are you willing to fish in Alaska for your dream? If not, rethink your path. This podcast gem inspires building enduring legacies, not just businesses.