My conversation with Todd Graves
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this in-depth conversation with Todd Graves, founder and majority owner of Raising Cane's, David Senra explores the relentless obsession and extreme focus that built a $20 billion chicken finger empire. Todd shares his extraordinary journey from being told his concept wouldn't work to creating one of America's most successful restaurant chains through unwavering commitment to quality and simplicity.
- Main themes: The power of doing one thing better than anyone else, the importance of founders retaining control of their businesses, and how fanatical obsession with quality creates unstoppable competitive advantages.
Speakers
Todd Graves
Todd Graves is the founder and majority owner of Raising Cane's, owning over 90% of a business worth over $20 billion. He has been working on this business for almost thirty years, starting with a business plan that received criticism in college but has since grown into one of America's most successful restaurant chains with 75,000 crew members worldwide.
David Senra
David Senra is the host of the Founders podcast, where he has obsessively read over 400 biographies of history's greatest entrepreneurs for almost a decade. He searches for actionable insights from legendary business builders that listeners can apply to their own work and ventures.
Key Takeaways
Master the Art of Singular Focus
Todd Graves built a $20 billion empire by doing one thing exceptionally well: chicken finger meals. (04:00) While competitors added menu items to avoid the "veto vote," Todd studied In-N-Out Burger's success with their unchanged menu since 1948 and applied the same principle. This singular focus allows Raising Cane's to perfect every detail - from the species of bird to the 24-hour brining process to crinkle-cut fries with sugar tips removed. The result is a "craveable" product that customers return for repeatedly, proving that the distracted don't beat the focused.
Transform Rejection Into Entrepreneurial Fuel
When Todd presented his chicken finger concept to professors and bankers, he was told it wouldn't work because customers needed variety. (14:03) Rather than being discouraged, Todd used these rejections as fuel for his fanaticism. He advocates that entrepreneurs should view every "no" as gasoline on a fire, using the need to prove doubters wrong as motivation to push through the inevitable pain of building a business. This mindset shift transforms obstacles into energy sources for relentless pursuit of your vision.
Never Sacrifice Quality for Financial Shortcuts
Todd warns against the "death by a thousand cuts" mentality where businesses gradually reduce quality to save pennies. (11:22) He explains that in the restaurant business, they make money "if we make 10 cents on a dollar," but cutting quality to save small amounts ultimately destroys the "craveable" nature that brings customers back. Todd has fired CFOs who suggested quality compromises, understanding that maintaining the highest standards is what creates the emotional connection that drives repeat business and word-of-mouth marketing.
Stay in the Details of Your Business
Contrary to conventional advice about delegation, Todd believes successful entrepreneurs must remain deeply involved in operational details. (79:52) He argues that true delegation means hiring great people and supplementing their skills to maintain your quality standards, not abandoning oversight. Todd cites Gary Chouest, who runs a multibillion-dollar shipping company but still knows exactly what his company spends on bottled water, because attention to small details reflects systematic efficiency throughout the entire organization.
Founders Should Never Sell Their Life's Work
Todd passionately advocates that founders should retain control of their businesses rather than selling to private equity or strategic buyers. (40:29) He explains that only founders treat the business as their "baby," taking customer complaints personally and maintaining the appreciation that drives exceptional service. When founders sell controlling stakes, decision-making becomes driven by financial returns rather than purpose, often leading to quality compromises that destroy what made the business special. Todd believes the purpose of business should be "what you give, not what you make."
Statistics & Facts
- Raising Cane's is valued at over $20 billion, with Todd Graves owning over 90% of the business. (00:21) This makes it one of the largest family-controlled restaurant empires in America.
- The company employs 75,000 crew members across their global restaurant system. (41:39) Todd emphasizes this represents mostly part-time workers getting their first jobs in the restaurant industry.
- Raising Cane's achieves 2 minutes and 35 seconds average service time for both drive-through and counter service. (86:35) Todd explains that every 2-second improvement in service time equals approximately 1% increase in sales, or $60 million annually at their current $6 billion revenue run rate.
