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Dec 25, 2025 · 50m · how-i-built-this

Advice Line with Todd Graves of Raising Cane's

Todd Graves · 19m spoken Guy Raz · 14m spoken Shane Lyons · 5m spoken Evan Sledge · 4m spoken David Burmeister · 2m spoken
0:00 / 0:00

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On this episode of The Advice Line, Guy Raz and Raising Cane's founder Todd Graves mentor emerging food and beverage entrepreneurs on operational discipline, creative non-equity financing, and sustainable scaling strategies.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Guy holds 32.3% of the talking time here. How this is scored →

Guy as informed peer 6.3 Guest teaching 5.0 Guest disagreement 1.0 Guy pushing back 2.3
05100:0015:0030:0045:000:08–8:50 · Guy as informed peer 6/10 Todd Graves on Raising Cane's Strategy and Focus Guy Raz demonstrates strong retail expertise by analyzing SKU limitation strategies and citing Trader Joe's revenue metrics. Todd Graves explains the operational mechanics of drive-thru speed and why adding spicy chicken compromises quality. The interaction is fully collaborative and mutually reinforcing.8:51–23:01 · Guy as informed peer 6/10 Whiskey Morning Coffee: Franchising Versus Slow Organic Growth Guy pushes back on Evan's early daily sales projections and provides a structured framework for proving unit economics before franchising. Todd provides deep practical wisdom on the quality drop from corporate stores to franchise operators. Evan is receptive and grateful for the guidance.23:20–35:09 · Guy as informed peer 7/10 Midwest Pasta Company: Creative Non-Equity Financing Strategies Guy demonstrates deep advisory knowledge by recommending non-traditional financing routes like state ag grants, equipment leasing, and co-packing joint ventures. Todd shares his playbook of using high-interest subordinated debt with local angels to protect equity. David openly shares his credit constraints and absorbs the advice.35:30–47:11 · Guy as informed peer 6/10 Vesti Sandwiches: Evaluating Brick-and-Mortar Expansion Versus Core Catering Guy and Todd actively challenge the impulse to open a traditional brick-and-mortar restaurant, highlighting how it distracts from core profitable wholesale operations. Guy offers an alternative commissary 'brand embassy' concept, referencing the origins of Stacy's Pita Chips. Shane acknowledges the risk of chasing shiny objects and agrees with their focus.0:08–8:50 · Guest teaching 5/10 Todd Graves on Raising Cane's Strategy and Focus Guy Raz demonstrates strong retail expertise by analyzing SKU limitation strategies and citing Trader Joe's revenue metrics. Todd Graves explains the operational mechanics of drive-thru speed and why adding spicy chicken compromises quality. The interaction is fully collaborative and mutually reinforcing.8:51–23:01 · Guest teaching 5/10 Whiskey Morning Coffee: Franchising Versus Slow Organic Growth Guy pushes back on Evan's early daily sales projections and provides a structured framework for proving unit economics before franchising. Todd provides deep practical wisdom on the quality drop from corporate stores to franchise operators. Evan is receptive and grateful for the guidance.23:20–35:09 · Guest teaching 5/10 Midwest Pasta Company: Creative Non-Equity Financing Strategies Guy demonstrates deep advisory knowledge by recommending non-traditional financing routes like state ag grants, equipment leasing, and co-packing joint ventures. Todd shares his playbook of using high-interest subordinated debt with local angels to protect equity. David openly shares his credit constraints and absorbs the advice.35:30–47:11 · Guest teaching 5/10 Vesti Sandwiches: Evaluating Brick-and-Mortar Expansion Versus Core Catering Guy and Todd actively challenge the impulse to open a traditional brick-and-mortar restaurant, highlighting how it distracts from core profitable wholesale operations. Guy offers an alternative commissary 'brand embassy' concept, referencing the origins of Stacy's Pita Chips. Shane acknowledges the risk of chasing shiny objects and agrees with their focus.0:08–8:50 · Guest disagreement 1/10 Todd Graves on Raising Cane's Strategy and Focus Guy Raz demonstrates strong retail expertise by analyzing SKU limitation strategies and citing Trader Joe's revenue metrics. Todd Graves explains the operational mechanics of drive-thru speed and why adding spicy chicken compromises quality. The interaction is fully collaborative and mutually reinforcing.8:51–23:01 · Guest disagreement 1/10 Whiskey Morning Coffee: Franchising Versus Slow Organic Growth Guy pushes back on Evan's early daily sales projections and provides a structured framework for proving unit economics before franchising. Todd provides deep practical wisdom on the quality drop from corporate stores to franchise operators. Evan is receptive and grateful for the guidance.23:20–35:09 · Guest disagreement 1/10 Midwest Pasta Company: Creative Non-Equity Financing Strategies Guy demonstrates deep advisory knowledge by recommending non-traditional financing routes like state ag grants, equipment leasing, and co-packing joint ventures. Todd shares his playbook of using high-interest subordinated debt with local angels to protect equity. David openly shares his credit constraints and absorbs the advice.35:30–47:11 · Guest disagreement 1/10 Vesti Sandwiches: Evaluating Brick-and-Mortar Expansion Versus Core Catering Guy and Todd actively challenge the impulse to open a traditional brick-and-mortar restaurant, highlighting how it distracts from core profitable wholesale operations. Guy offers an alternative commissary 'brand embassy' concept, referencing the origins of Stacy's Pita Chips. Shane acknowledges the risk of chasing shiny objects and agrees with their focus.0:08–8:50 · Guy pushing back 1/10 Todd Graves on Raising Cane's Strategy and Focus Guy Raz demonstrates strong retail expertise by analyzing SKU limitation strategies and citing Trader Joe's revenue metrics. Todd Graves explains the operational mechanics of drive-thru speed and why adding spicy chicken compromises quality. The interaction is fully collaborative and mutually reinforcing.8:51–23:01 · Guy pushing back 3/10 Whiskey Morning Coffee: Franchising Versus Slow Organic Growth Guy pushes back on Evan's early daily sales projections and provides a structured framework for proving unit economics before franchising. Todd provides deep practical wisdom on the quality drop from corporate stores to franchise operators. Evan is receptive and grateful for the guidance.23:20–35:09 · Guy pushing back 2/10 Midwest Pasta Company: Creative Non-Equity Financing Strategies Guy demonstrates deep advisory knowledge by recommending non-traditional financing routes like state ag grants, equipment leasing, and co-packing joint ventures. Todd shares his playbook of using high-interest subordinated debt with local angels to protect equity. David openly shares his credit constraints and absorbs the advice.35:30–47:11 · Guy pushing back 3/10 Vesti Sandwiches: Evaluating Brick-and-Mortar Expansion Versus Core Catering Guy and Todd actively challenge the impulse to open a traditional brick-and-mortar restaurant, highlighting how it distracts from core profitable wholesale operations. Guy offers an alternative commissary 'brand embassy' concept, referencing the origins of Stacy's Pita Chips. Shane acknowledges the risk of chasing shiny objects and agrees with their focus.

speaking balance: gold is Guy, purple is the guest (3 minute bins)

0:00 · Guy 74.7% · guest 25.3%0:00 · Guy 74.7% · guest 25.3%3:00 · Guy 33% · guest 67%3:00 · Guy 33% · guest 67%6:00 · Guy 41.1% · guest 58.9%6:00 · Guy 41.1% · guest 58.9%9:00 · Guy 28.6% · guest 71.4%9:00 · Guy 28.6% · guest 71.4%12:00 · Guy 14.8% · guest 85.2%12:00 · Guy 14.8% · guest 85.2%15:00 · Guy 3.1% · guest 96.9%15:00 · Guy 3.1% · guest 96.9%18:00 · Guy 26.3% · guest 73.7%18:00 · Guy 26.3% · guest 73.7%21:00 · Guy 62.2% · guest 37.8%21:00 · Guy 62.2% · guest 37.8%24:00 · Guy 21.8% · guest 78.2%24:00 · Guy 21.8% · guest 78.2%27:00 · Guy 2.5% · guest 97.5%27:00 · Guy 2.5% · guest 97.5%30:00 · Guy 55% · guest 45%30:00 · Guy 55% · guest 45%33:00 · Guy 41.9% · guest 58.1%33:00 · Guy 41.9% · guest 58.1%36:00 · Guy 17.5% · guest 82.5%36:00 · Guy 17.5% · guest 82.5%39:00 · Guy 11% · guest 89%39:00 · Guy 11% · guest 89%42:00 · Guy 34.3% · guest 65.7%42:00 · Guy 34.3% · guest 65.7%45:00 · Guy 27.5% · guest 72.5%45:00 · Guy 27.5% · guest 72.5%48:00 · Guy 59.4% · guest 40.6%48:00 · Guy 59.4% · guest 40.6%
Sharpest disagreement ▶ 5:14 Graves rejects industry experts pushing menu expansion

Todd Graves forcefully dismisses the common wisdom of food industry experts and bankers demanding spicy chicken, asserting that menu proliferation ruins speed and quality.

 Hardest push from Guy ▶ 14:52 Raz challenges ambitious revenue projections

Guy Raz immediately calls out Evan's estimated $1,500-$2,000 daily revenue for a tiny small-town drive-thru as overly optimistic.

 Biggest teaching moment ▶ 17:30 Graves breaks down the 95 vs 85 operational quality gap

Todd Graves educates the host and caller on why even exceptional franchisees inevitably operate at an 85 compared to a founder's 95, creating operational friction and valuation drag.

 Guy holds their own ▶ 6:21 Raz cites Trader Joe's SKU metrics to defend simplicity

Guy Raz demonstrates command of retail strategy by comparing Trader Joe's 3,000 vetted products and $16B revenue against Walmart's 200,000 SKUs to reinforce Graves's focus thesis.
the scores for every segment, with the reasoning behind each
ChapterTopicGuy as informed peerGuest teachingGuest disagreementGuy pushing backWhy
Todd Graves on Raising Cane's Strategy and Focus 6511 Guy Raz demonstrates strong retail expertise by analyzing SKU limitation strategies and citing Trader Joe's revenue metrics. Todd Graves explains the operational mechanics of drive-thru speed and why adding spicy chicken compromises quality. The interaction is fully collaborative and mutually reinforcing.
Whiskey Morning Coffee: Franchising Versus Slow Organic Growth 6513 Guy pushes back on Evan's early daily sales projections and provides a structured framework for proving unit economics before franchising. Todd provides deep practical wisdom on the quality drop from corporate stores to franchise operators. Evan is receptive and grateful for the guidance.
Midwest Pasta Company: Creative Non-Equity Financing Strategies 7512 Guy demonstrates deep advisory knowledge by recommending non-traditional financing routes like state ag grants, equipment leasing, and co-packing joint ventures. Todd shares his playbook of using high-interest subordinated debt with local angels to protect equity. David openly shares his credit constraints and absorbs the advice.
Vesti Sandwiches: Evaluating Brick-and-Mortar Expansion Versus Core Catering 6513 Guy and Todd actively challenge the impulse to open a traditional brick-and-mortar restaurant, highlighting how it distracts from core profitable wholesale operations. Guy offers an alternative commissary 'brand embassy' concept, referencing the origins of Stacy's Pita Chips. Shane acknowledges the risk of chasing shiny objects and agrees with their focus.

Statements from this episode (8)

Assertion Supported
Raz: Raising Cane's surpassed KFC as third-largest US chicken chain
“This past summer of 2025, Cane's surpassed Kentucky Fried Chicken as the third largest chicken quick service restaurant in the U.S.”
Guy Raz Dec 25, 2025 ▶ 1:34
Disclosure
Graves: Raising Cane's refuses to introduce spicy chicken options
“Bankers would be like, well, are you considering a spicy alternative? I'm like, no, we're not considering a spicy alternative, because our concept is quality food, quality, craveable food served with fast food, speed, and convenience.”
Todd Graves Dec 25, 2025 ▶ 5:15
Insight
Graves: Limited-time menu offers degrade restaurant customer service and consistency
“I've certainly saved menu for 29 years now, almost 30 years. If I had LTOs, which might spike business for a tiny bit, right, something new at Cain's, my managers would have to, like, then be putting up point of purchase materials, getting training everybody o…”
Todd Graves Dec 25, 2025 ▶ 7:36
Insight
Graves: Most quick-service restaurant franchisees operate at 65 to 70 percent efficiency
“Our franchisees were about an 85, which is exceptional in the franchise world, because most of them, in quick service food, run at about a 65, 70.”
Todd Graves Dec 25, 2025 ▶ 18:19
Insight
Graves: Company-owned restaurant chains achieve far higher valuations than franchise models
“Another advantage of having your own restaurants, company restaurants, is that your valuations are way higher, right? So your sales, your profitability, your EBITDA that goes through as you grow company restaurants, just the company's worth so much more, man.”
Todd Graves Dec 25, 2025 ▶ 19:11
Disclosure
Todd Graves: Raising Cane's Will Remain a Generational, Company-Owned Business
“And so for me is I'm not selling the business. I love the business. I want it to be a generational business and to keep rolling. And the best way to have something I'd be proud of for me personally was to own them company restaurants.”
Todd Graves Dec 25, 2025 ▶ 22:40
Disclosure
Graves: Early Cane's Scaled on 15% Subordinated Debt to Protect Equity
“So what I had was angel investors that I would do a 15% interest rate, subordinated debt. Okay. It was a one pager and I personally endorse these. I mean, if I personally signed onto it, so they knew anything I had in the world, which is all just tied up the b…”
Todd Graves Dec 25, 2025 ▶ 29:26
Disclosure
Todd Graves: Raising Cane's Has 1,000 Locations and Plans 1,000 More
“And now I got a thousand brick and mortars and we're planning on the next thousand, you know what I mean? But if I tried to get into retail line, you know, the grocery stores want canes frozen in the grocery stores retail, they want our sauce bottle. They want…”
Todd Graves Dec 25, 2025 ▶ 41:18
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