Graves: Single fast-food locations cannot build wealth without multi-unit scale
Todd Graves · Raising Cane's: Todd Graves · Apr 25, 2022 · at 57:12
Todd Graves, founder of Raising Cane's, discusses the business economics of quick-service restaurants with Guy Raz.
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“Quick service restaurants make tiny margins on large volumes. It's just what it is. And look, you can have a whole family working in a restaurant, and I know a lot of great Family restaurants that do that, so you lower your labor cost, and everybody kind of lives out of it, and you expense things out of it, but it's not the way to garner wealth. When you open multiple locations, you actually get buying power, right? You get, you know, you get, you're ordering more products, so your prices go down, your margins get better. It's a really tight margin business.”
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