How I Built This with Guy Raz Advice Line with Todd Graves of Raising Cane's
21 snips
Dec 25, 2025 
Todd Graves, founder of Raising Cane's, shares his expertise in business growth and operations. He advises an aspiring coffee entrepreneur on the importance of validating a franchise model before scaling. For a pasta company founder with financial hurdles, Todd suggests creative financing options like subordinated debt. He also cautions a focaccia sandwich creator about the challenges of opening a brick-and-mortar location, recommending alternative strategies like pop-ups to maintain scalability and focus.
AI Snips
Chapters
Transcript
Episode notes
High-Performing Units Scale Value
- High average unit volume can outweigh having fewer total locations when valuing a restaurant chain.
- Focusing on profitable, high-performing units can create outsized company value.
Double Down On A Simple Core Offer
- Stay focused on what you do best and avoid unnecessary menu drift that slows service and harms quality.
- Adding choices increases complexity, reduces speed, and can erode your core product and margins.
Prove The Model Before Franchising
- Prove and instrument a mothership location before franchising to ensure repeatable unit economics.
- Only consider franchising after 3–5 company-owned stores with documented training, controls, and margins.