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

Podcast: How I Built This

Published: 2025-12-25

Duration: 51 minutes

Guests: Todd Graves, Evan Slaughter, David Burmeister, Shane Lyons

Summary

Todd Graves, founder of Raising Cane's, provides strategic advice to early-stage business founders. He shares insights on franchising, funding, and expansion decisions.

What Happened

Todd Graves, founder of Raising Cane's, joined Guy Raz to provide guidance to three entrepreneurs looking to expand their businesses. Evan Slaughter of Whiskey Morning Coffee is considering launching drive-through locations. Graves recommended evaluating the benefits of franchising versus maintaining company-owned stores, emphasizing the importance of control and consistency in quality.

David Burmeister of Midwest Pasta Company faces challenges securing financing due to a past SBA loan default. Graves suggested angel investors as an alternative funding source, sharing his own experience using subordinated debt with a 15% interest rate to grow Raising Cane's without losing equity. Burmeister's company has more demand than it can currently supply, which Graves pointed out as a strong position for negotiation.

Shane Lyons from Vesti is contemplating whether to open a brick-and-mortar restaurant. Graves advised against it, recommending that Lyons focus on expanding retail partnerships instead of investing in a physical location, which could divert resources from their successful catering and retail operations.

Graves shared his journey with Raising Cane's, which started with him and his partner presenting their business plan to numerous banks while wearing cheap suits. His key takeaway was the importance of progress over perfection, a lesson learned from mentors and still applied in his business decisions today.

Raising Cane's success is attributed to its consistent menu and disciplined approach to growth. Graves drew inspiration from In-N-Out Burger's simplicity and consistency, which has helped Cane's surpass Kentucky Fried Chicken in the U.S. market.

Graves highlighted the importance of selecting the right franchise partners, citing their collaboration with Al Shaya company in the Middle East as an example of successful international growth. This careful expansion strategy has allowed Raising Cane's to maintain high standards across its 1,000 restaurants.

Listeners were encouraged to call in with their own business questions, with the opportunity to be featured on future episodes of the Advice Line. The episode concluded with a reminder to sign up for Guy Raz's newsletter for more insights.

Key Insights