In the mid-1990s, Todd Graves and his friend, Craig Silvey, wrote a business plan for a fast-food restaurant that sold only fried chicken tenders. Silvey's professor at Louisiana State University gave it the lowest grade in the class.
But Graves didn't let the criticism stop him.
He worked to raise his own funds and eventually opened his chicken-tender restaurant, Raising Cane's, in 1996.
Cane's now has more than 800 restaurants in the US and internationally, with locations in over 40 states. The chain, whose loyal fans are known as "Canaics," made $2.3 billion in revenue during the first half of 2024, Bloomberg reported.
As founder, Graves has close to a 90% stake in the company. Forbes reported his estimated net worth is $9.5 billion as of October 18, 2024.
Here's how Graves turned a bad grade into a billion-dollar business.
Todd Graves, the founder and CEO of Raising Cane's, is one of the 400 richest people in the US.
Todd Graves is the founder of Raising Cane's. His net worth is $7.6 billion, according to Bloomberg.
He refers to himself as "CEO, Fry Cook, and Cashier of Raising Cane's Chicken Fingers."
Graves and AJ Kumaran, the chain's chief operating officer, have shared the co-CEO title since 2018.
Graves wrote a business plan for Raising Cane's and submitted it to a professor at Louisiana State University. The professor gave it a low grade.
Todd Graves, right, received a low grade on a business paper in college.
Matthew Hinton/AP
Graves, who graduated from the University of Georgia, and his friend Craig Silvey, an LSU student, submitted a business plan to Silvey's business professor. It was based on Graves' idea of opening a fast-food restaurant that only sold fried chicken fingers.
The professor said the niche food concept wouldn't work.
Graves and Silvey also tried to secure bank loans to finance the small business idea, but the financial institutions also turned them down.
Graves didn't give up on his dream, however.
Graves believed fast food eaters would love fried tenders, which he called "the filet mignon of the chicken." So he raised his own funds.
Todd Graves (left) worked at an oil refinery to raise money to launch Raising Cane's.
Raising Cane's
Graves said he saw the flavor potential of opening a restaurant that exclusively served fried boneless tenderloin meat.
Determined to launch the business, he moved to Los Angeles in 1994 to work as a boilermaker at an oil refinery in Southern California, according to Raising Cane's website. He worked 90-hour weeks to raise the seed money to open his first Raising Cane's.
Graves left Los Angeles for Alaska, where he found he could earn more money fishing.
Todd Graves traveled to Alaska to earn more money.
Raising Cane's
Graves moved to Alaska in 1995. He camped on the tundra for a month before landing a job as a fisherman. He worked 20-hour days fishing for sockeye salmon in Bristol Bay in Southwest Alaska.
After securing a SBA loan, he finally had enough funding to launch his business.
With enough seed money, he returned to Louisiana to build Raising Cane's.
Todd Graves named Raising Cane's after his dog, Cane.
Raising Cane's
Graves originally planned to call the restaurant "Sockeye's," a nod to his time in Alaska. Upon a friend's advice, he decided to name the restaurant after his beloved yellow Labrador retriever, Cane. The dog was a frequent visitor to the construction site where he worked.
Graves and Silvey opened the first Raising Cane's restaurant on August 28, 1996, inside a renovated building at the entrance of Louisiana State University in Baton Rouge. However, due to issues with the cash registers, the restaurant didn't officially open for business until after 9 p.m.
Graves took to the streets to wave in customers, and the restaurant stayed open until 3:30 a.m.
Silvey left the company in 1999, CNBC reported.
Graves said a risky business strategy nearly cost him his company in the early years.
A Raising Cane's restaurant.
Hollis Johnson
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 is now one of the fastest-growing fast-food brands with a cult-like fan base known as Caniacs.
The menu at Raising Cane's is simple: fried chicken tenders, Texas Toast, coleslaw, crinkle-cut fries, sodas, fresh-squeezed lemonade, and fresh-brewed iced tea.
The chain's Cane's Sauce is considered legendary. The chain said on X in 2015 that the recipe is only known by store general managers, though recipes online suggest it's made from ingredients including mayonnaise, ketchup, Worcestershire sauce, garlic powder, salt, and pepper.
The chain's never-frozen chicken tenders are cooked to order.
Raising Cane's logged more than $2.3 billion in revenue during the first half of 2024.
Raising Cane's was on track to surpass revenue expectations in 2024.
Joey Bordelon/Raising Cane's
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 2020, Graves gave up his salary to save jobs.
Raising Cane's could reach 900 locations by the end of 2024.
Raising Cane's
Graves and co-CEO Kumaran gave up their salaries when many dining rooms were shut down during the onset of the COVID-19 pandemic in March 2020.
In 2021, Graves took a starring role in a Discovery+ series called "Restaurant Recovery."
In spring 2021, Graves hosted the Discovery+ series "Restaurant Recovery."
Jonathan Bachman/Getty Images
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."
In June 2023, the chain opened the first of 25 restaurants planned in New York City.
Raising Cane's opened its first location in New York City in June 2023.
Raising Cane's
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."
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