Why Most Restaurants Fail (And How We Built One That Lasted 17 Years) with Thomas McNaughton and David Steele

Thomas McNaughton and David Steele share how they built Flour + Water Hospitality Group from a single restaurant into one of San Francisco's most respected hospitality brands by embracing change instead of chasing comfort. In this episode, they talk about why waiting until you're ready is one of the biggest mistakes entrepreneurs make, how trust and honest partnerships helped them navigate challenges, and why putting people before profits became the foundation of their long-term success. They also share the lessons they learned from opening during the 2008 financial crisis, surviving the pandemic, and constantly reinventing their business. this conversation is about building something that lasts by staying curious, embracing change, and having the courage to keep evolving long after you've found success. Key Topics: -Stop waiting until you're ready -The secret to lasting 17 years in business -Great partners make different strengths win -Culture beats strategy every time -Hire for attitude, teach the skills -The biggest failures create the biggest growth Timestamps: 05:51 Why They're Still Entrepreneurs After 17 Years 07:26 The Business Plan That Changed Everything 11:32 They Met Through A Craigslist Job Post 13:02 The Restaurant Name Everyone Thought Was Terrible 21:40 The Real Secret To Staying In Business For 17 Years 22:05 They Almost Ran Out Of Money Before Opening 24:34 They Started Before They Had Enough Money 30:48 Stop Waiting Until You Feel Ready 35:25 Trust Your Instincts More Than Your Opinions 40:28 People Always Come Before Profit 42:17 Hire For Attitude, Train For Skill 46:20 The Culture Lesson That Changed Their Company 56:57 Every Great Leader Feels Like An Impostor 58:06 Why Their Vision Is Bigger Than Restaurants 59:54 Their Biggest Failures Built Their Best Business 1:01:05 The Pandemic Made Them Stronger Than Ever Connect with - David Steele: LinkedIn - linkedin.com/in/david-steele-76088a Website: flourandwater.com Connect with - David Steele: LinkedIn - linkedin.com/in/thomas-mcnaughton-b0345595 Website: flourandwater.com Connect to Entrepreneurial-Excellence Podcast: LinkedIn - ⁠https://www.linkedin.com/company/entrepreneurial-excellence-podcast⁠ Youtube - http://www.youtube.com/@EntrepreneurialExcellencePod TikTok - ⁠https://www.tiktok.com/@eepodcast24⁠Facebook - https://www.facebook.com/profile.php?id=61570329516959 Website - https://www.hirechore.com/resources/podcast