In just 28 years, Raising Cane’s has grown into one of the most powerful forces in the fast-food world. Only recently did it dethrone KFC to become the third-largest chicken chain in the United States. Todd Graves first opened the chain’s doors in August 1996. It began its life initially with only a single station at the North Gates of Louisiana State University in Baton Rouge. The name “Raising Cane’s” honors Graves’ cherished labrador retriever Raising Cane.
Today, Raising Cane’s is proud to have more than 900 locations in 42 states and growing. With a limited but sexy menu featuring chicken fingers, crinkle-cut fries, Texas toast, coleslaw and their signature sauce, this simplified product offering has struck a chord with consumers, fueling the chain’s blistering growth and success.
In 2024, Raising Cane’s reached an astounding $6.6 million average unit volume. That’s over twice the average for the entire fast-food industry! With plans to operate nearly 1,000 restaurants by the end of 2025, the chain has opened 118 new locations in the past year alone and aims to add around 100 more this year. Their original and still best-performing location is in Times Square, New York City. Last year, it brought in a mind-boggling $25 million in system sales.
The unusualness of Raising Cane’s franchise model is hard to overstate, with franchisees running just under 3% of its restaurants. Todd Graves continues as majority owner of the company, which has an estimated net worth of $17.2 billion. Raising Cane’s unwavering focus on brand control means they’re free to invest in long-term growth without losing their brand identity.
“We are focused on growing our business, and we take a very long-term viewpoint in the business,” said AJ Kumaran, co-CEO of Raising Cane’s. The company has strategically and carefully chosen new market entries including New York, Massachusetts, California, and most recently Florida to expand.
Raising Cane’s has clearly mastered the art of viral marketing. They worked with celebrities such as Post Malone, and even had Succession’s Sarah Snook pay them a sponsored visit! These efforts have significantly boosted brand awareness. “It has been massive for us. Our brand awareness truly took off,” Kumaran noted regarding their marketing initiatives.
R.J. Hottovy, a restaurant industry analyst, lauded them for their efficiency. Their operators are some of the most productive in the drive-thru industry, he added. “Really, Chick-fil-A is the only one that’s even close to that.” Their heightened operational efficiency, combined with the possible peak customer volumes Raising Cane’s will ever see, are going to make them operationally efficient.
And even with those external challenges of competition and changing market dynamics, Raising Cane’s is doubling down on their mission. The Texas-based chain boasts about being home of the “chicken finger meal experts.” They brag shamelessly that no one can do what they’ve done on a large scale. “I think for us it’s not a fad. For us, it’s a lifestyle,” Kumaran emphasized.
The company’s growth trajectory amazes industry watchers with each successive quarter. That Times Square locations were about tourist area, USA, USA – but that was the intention! “We saw that as a huge opportunity to showcase our restaurants to millions and millions of tourists who walk around that restaurant every day, so we did that,” Kumaran explained.
Raising Cane’s corporate leadership puts a lot of thought into any new restaurant’s location considering the following: “Do we have a good population density? Do we have the traffic drivers such as schools and other establishments? We look at that, and we have very good data points to look at backwards, as well as project out what the future is going to look like in a community,” Kumaran stated.
The chain’s success is illustrated by the fact that they just achieved their first $1 billion quarter. Raising Cane’s has some lofty plans for the next 10 years. They are committed to maintaining their new momentum in the quick-service restaurant (QSR) world.