TLDR;
In this episode of Theo Von's podcast, Todd Graves, the founder of Raising Cane's, shares his journey from a college business plan to a billion-dollar restaurant chain. He emphasizes the importance of passion, perseverance, and positive motivational management. Graves also discusses the significance of community involvement and giving back, highlighting Raising Cane's commitment to supporting local areas and helping those in need.
- Importance of passion and perseverance in achieving entrepreneurial success.
- The value of positive motivational management in creating a happy and productive work environment.
- The significance of community involvement and giving back to create a positive impact.
Introduction [0:00]
Theo Von introduces Todd Graves, the founder of Raising Cane's, highlighting his entrepreneurial success in the food industry, starting from Baton Rouge, Louisiana, and building a billion-dollar company. Theo expresses gratitude for the opportunity to learn from Graves' experiences and insights.
Raising Cane's Overview and Background [0:47]
Todd Graves discusses the current scale of Raising Cane's, noting that the business has grown to almost 600 locations in nearly 25 years and is expanding by about 100 locations per year. Graves shares that he approves every site personally, despite having a team that works with local brokers. He also mentions his Louisiana roots, growing up in New Orleans and Baton Rouge, and his family's connection to Episcopal High School.
The College Business Plan and Early Struggles [2:36]
Graves recounts how Raising Cane's began as a college business plan, which ironically received the worst grade in the class. He emphasizes his passion for the restaurant business, particularly enjoying the drive-through and fry line operations. Graves shares that his initial business partner sold out after the second location because he lacked the same passion for the work. He stresses the importance of pursuing something one loves to ensure success and happiness.
Securing Funding and Overcoming Doubts [4:59]
Graves describes the challenges he faced in securing funding for his restaurant concept. Banks were hesitant to invest in a chicken finger-only business, advising him to gain more industry experience. Undeterred, Graves took on work as a boilermaker in refineries to raise money. He highlights the skepticism surrounding his business plan, as quick-service restaurants were trending towards variety, while he aimed to focus on doing one thing exceptionally well.
Working as a Boilermaker and Fishing in Alaska [7:02]
Graves details his experience working as a boilermaker in refineries to earn money for his restaurant. He explains the demanding nature of the job, which involved repairing and replacing equipment in refineries under tight deadlines. After needing more funds, a colleague named Wild Bill encouraged him to try commercial fishing in Alaska. Graves took his sister's flyer miles to fly to Alaska and worked on a boat, gill netting for sockeye salmon.
Commercial Fishing in Alaska [9:36]
Graves describes his experience commercial fishing in Alaska, highlighting the diverse group of people involved, including Inuits and fishermen from various states. He explains the life cycle of sockeye salmon and the intense competition among fishermen to intercept the fish. The work was grueling, with 20-hour days, and dangerous, with boats ramming each other. Despite the madness, Graves remained focused on his chicken finger dream.
Leadership and Motivation [13:44]
Graves reflects on his leadership style, drawing from his experience as a quarterback in high school football. He emphasizes the importance of positive motivation over negative reinforcement, which he applies in his restaurants. Graves shares that he focuses on creating a happy and supportive work environment, which leads to better performance and customer service.
Favorite Memories and Giving Back [16:38]
Graves answers a question about his favorite memory from Raising Cane's, emphasizing that every restaurant and crew member matters to him. He values the ability to give back to the community and involve his crew in helping those less fortunate. Graves cites his involvement with the Big Buddy program in Baton Rouge as a particularly meaningful experience. He also expresses pride in being recognized as a top CEO by his crew members.
Influence of Family and Kindness [19:06]
Graves discusses the influence of his father, who exposed him to business and instilled the values of hard work and politeness. He shares that he tries to pass these values on to his own children, emphasizing the importance of kindness. Graves also acknowledges the challenges of managing stress and maintaining a positive attitude, especially as his business has grown.
Serving the Community [22:38]
Graves responds to a question about Raising Cane's support for Sulphur, Louisiana, after Hurricanes Laura and Delta. He expresses his commitment to doing one thing and doing it better than anyone else, which is providing quality chicken finger meals. Graves explains that adding variety would compromise the quality and speed of service, which are key to the Raising Cane's concept.
Maintaining Focus and Quality [24:01]
Graves explains his philosophy of focusing on one thing and doing it exceptionally well, which is why Raising Cane's has resisted adding new menu items. He believes that maintaining a limited menu ensures quality and speed of service. Graves shares that Raising Cane's and Chick-fil-A are one and two in quick service average unit volumes.
Growth and Expansion Challenges [29:01]
Graves reflects on the challenges of growing from one location to multiple restaurants. He admits to expanding too quickly, which led to operational issues and financial losses. Graves shares that he learned valuable lessons from these mistakes, which have informed his approach to new markets. He emphasizes the importance of having the right team and providing proper support.
Franchising vs. Company Restaurants [33:19]
Graves explains his preference for company-owned restaurants over franchising, as it allows him to maintain greater control over quality and operations. He partners with restaurant managers who embody his values and work ethic, empowering them to succeed. Graves stresses the importance of training and supporting employees to ensure success.
Restaurant Recovery Project [37:36]
Graves discusses the Restaurant Recovery project, which he started during the pandemic to support struggling family-owned restaurants. He explains that Raising Cane's sales increased during the pandemic due to its drive-thru format, but he felt it was important to help smaller restaurants that were suffering. The project involved providing resources and exposure to help these restaurants adapt to a to-go model.
Minimum Wage and Pricing Strategies [41:33]
Graves shares his thoughts on minimum wage increases and their impact on small businesses. He explains the slim margins in the quick-service restaurant industry and the need for businesses to pass on increased labor costs to customers. Graves advises small business owners to plan their pricing strategies carefully and communicate transparently with their customers.
Personal Goals and Vision [45:19]
Graves discusses the importance of setting personal goals and aligning them with a clear vision. He shares Raising Cane's vision statement, which emphasizes quality, crew culture, and community involvement. Graves explains that his vision guides his decisions and motivates him to overcome challenges. He also stresses the importance of giving back and inspiring others.
Menu and Consistency [49:58]
Graves reiterates his commitment to the original Raising Cane's menu, noting that it has remained unchanged since day one. He shares an anecdote about adding a chicken finger salad at an airport location due to city mandates, but it ultimately proved unpopular. Graves emphasizes the importance of maintaining consistency and quality across all menu items.
Trusting Others and Building a Team [52:08]
Graves reflects on the challenges of delegating and trusting others in his business. He admits to being overly controlling in the past, which hindered growth and creativity. Graves shares that he learned to bring in people smarter than him and trust them to do their jobs. He emphasizes the importance of finding talented people who align with the company's values.
Qualities of a Successful Restaurant Partner [58:08]
Graves describes the qualities he looks for in a restaurant partner, including a love for the food business, a positive attitude, and a commitment to helping others. He emphasizes the importance of community leadership and sacrifice. Graves shares that many of his partners are people who have found their "last stop" at Raising Cane's and are passionate about the brand.
Competition and Global Expansion [1:00:59]
Graves discusses the competitive landscape of the chicken restaurant industry, noting that Raising Cane's coexists symbiotically with other chains. He expresses more concern about young entrepreneurs who directly compete with his concept. Graves shares that Raising Cane's has expanded to the Middle East and is considering further expansion into Asia.
Music and Staying Relevant [1:06:21]
Graves shares his love for music and its importance in creating a vibrant atmosphere in his restaurants. He enjoys a wide range of genres, from country to hip-hop, and emphasizes the importance of staying relevant and connected to younger generations. Graves also discusses his friendships with various artists and their appreciation for Raising Cane's.
Values and Role Models [1:09:30]
Graves emphasizes the importance of good values and being a positive role model. He shares anecdotes about celebrities he knows who are committed to charity and community involvement. Graves believes that it is crucial to lean into the good and support each other, especially in a world that often focuses on negativity.
Achieving Success and Giving Back [1:11:56]
Graves reflects on achieving financial success and the importance of giving back. He shares a story about Hurricane Katrina and how it taught him the importance of financial stability. Graves emphasizes that he will never stop creating and doing because it is part of his DNA. He also stresses the importance of celebrating successes and setting goals.
Daily Routine and Legal Challenges [1:18:30]
Graves describes his daily routine, which involves a mix of committee meetings, market visits, and personal activities. He also discusses the legal challenges that come with running a large business, noting that it is important to defend one's honor and values. Graves concludes by emphasizing the importance of doing good for other people, regardless of one's profession.
