How the Raising Cane’s founder, Todd Graves, turned a lousy college grade into a billion-dollar fast-food business

When Graves was growing his business, he borrowed money from private investors at a high interest rate of 15%, he told the “How I Built This” podcast in 2022, per CNBC.

Graves said he used the money he’d borrowed from private investors to try to secure more funding from local banks. The banks considered the borrowed money as if it were his own, which allowed him to get even bigger loans to fund the expansion of Raising Cane’s.

But this strategy was risky.

In 2005, Hurricane Katrina hit and forced 21 of his 28 stores in the Baton Rouge area to close. After the hurricane, the company recovered quickly and did not default on its loans. Still, Graves said he wouldn’t recommend taking on so much risk.

“I tell entrepreneurs, ‘Don’t do that,’ because my dream almost just went away,” Graves told the “Trading Secrets” podcast in May 2024. “It was stupid.”

Raising Cane’s turned 28 years old this year and is one of the fastest-growing restaurant chains in the US, opening more than 50 restaurants a year since 2018, when it had 400 locations.

In May, USA Today reported that the chain planned to open more than 90 new locations in 2024, bringing the total number of Raising Cane’s restaurants to nearly 900 by the end of the year.

Restaurant Business reported that Raising Cane’s average unit volume reached $6.2 million in 2024, which is more than double the quick-service industry average, citing data from S&P Global Ratings.

In the 10-episode series, Graves helped struggling independent restaurant owners get back on their feet after dining rooms reopened during the pandemic.

“The pandemic has been devastating to the restaurant industry as a whole, but thankfully, due to our drive-thrus at Raising Cane’s, we were fortunate to maintain our business,” Graves said in a statement.

“As a result, it became so important to me to pay it forward to those in need by offering financial and professional support,” he continued. “Our hope is that by providing a platform to highlight and amplify their awareness, these restaurants will be able to bounce back stronger than before.”

The company said the stores will open over the next three years in Manhattan and its surrounding boroughs. The first restaurant opened in Times Square in late June 2023.

“There’s a lot of clout that comes with a flagship in Times Square,” Graves told Business Insider at the Raising Cane’s flagship store’s opening. “People who don’t even know the concept might say, ‘Those chicken fingers look pretty good.’ There’s something special about it.”