He Became a Billionaire Doing One Thing and Almost Lost It All

Most entrepreneurs try to do too much. They offer their customers too many choices. Then they wonder why their quality and speed goes down. They end up off track. Instead of staying true to their original concept, they take advice from other people. They lose focus. They listen to the “experts”. They “pivot”.

Not Todd Graves. He’s kept the same menu for Raising Cane’s since day one.

Most entrepreneurs are seeking typical venture capital, private investors, or loans. Before Todd Graves started his business, he earned and saved the startup capital. He did it through months of hard work. First as a boilermaker in an oil refinery. Then as a commercial fisherman in Alaska, sometimes working 20-hour days.

Most entrepreneurs pursue outside investment, but Graves chose to self-fund. The truth is he had to. Every bank and investor he approached rejected him. That decision made his financial independence possible without diluting ownership or control.

He turned down multiple billion-dollar offers to buy Raising Cane’s. He chose instead to retain ownership and continue building the company himself. Which allowed him to maintain over 90% control. That decision allowed him to grow its value far beyond those offers.

But then he made a mistake that would almost cost him his entire business.

He borrowed from the community bank. Then he would have a sub-debt investor. Which means subordinated debt to the bank. That allowed him to raise $200,000 and give the note to the bank. So the bank gets their money first. He had to pay a 15% return. He didn’t want equity partners, but the banks used that like equity. 

That wasn’t a problem because he could open a restaurant and not have to pay employees for two weeks. He didn’t have to pay the vendors for 30 days. Rent wasn’t due for 30 days. On day one, each new restaurant was generating cash flow.

His strategy paid off until it didn’t. Up until 2005 he built 28 locations. Then Hurricane Katrina hit. That’s when 21 of 28 locations went down. All that cash flow stopped.

Todd Graves was over-leveraged.

Todd Graves and his team were quick to respond. They mobilized efforts to reopen stores. They shuttled product and staff from Baton Rouge to New Orleans. As conditions changed, they had to reopen locations multiple times. The company reopened restaurants 37 times in five weeks post-Katrina. Raising Cane’s was among the first restaurants to reopen in affected areas. They provided meals not only to customers but also to relief workers and volunteers.

During difficult times, the rapid reopening of Raising Cane’s in New Orleans was proof. Todd Graves has commitment to his crew and communities. His company has strong culture and hands-on leadership. That’s the only way to navigate the uncertainty and provide support for employees and locals in need.

Today, Todd Graves’ estimated net worth is over $17 billion.

I like you,

– Sean Allen Fenn

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