Episode #674
Episode 674: "Let's Just Choose Optimism": Dan Simons on Failure, Fear, and Finding a Way Forward
Dan Simons co-founded the Founding Farmers restaurant group in Washington, D.C., now about 1,500 employees and $100 million in annual revenue, plus a catering company, distillery, bakery, and their own coffee roasting, backed primarily by the North Dakota Farmers Union. He got there the hard way. His first restaurant, a fried chicken concept outside Dallas, closed after 18 months and left him broke, sued personally by the landlord, and facing investors who had believed in him. He tells that story in full, along with the two lessons he took from it: he was undercapitalized for a business that needs time to survive, and he had been quietly certain he knew better than his own customers. From there the conversation turns to what is squeezing full-service restaurants now, including falling alcohol sales, rising costs, and roughly a third of adults on GLP-1 medications. Simons takes a GLP-1 himself and talks openly about the eating disorder and "food noise" behind that decision, which shapes how his teams greet guests who do not want to drink or overeat. He also makes a pointed case for American family farmers and for breaking up the monopolies squeezing them. Throughout, he refuses the fatalistic read of the industry, not because it is wrong on the facts but because it is useless. 10 key takeaways Integration, not balance. He does not separate being a dad, a husband, and an operator. He over-communicates where he is and why, and expects people to speak up. "Responsibility doesn't require mind reading." Have a year of working capital, or open a year later. If that feels impossible, that is information. You will spend the money either way. Ignorance plus confidence is arrogance. His first restaurant failed partly because he looked down on what customers already loved. Ask what you are getting wrong today. He turned the failure into a daily audit for blind spots, and treats the fear as a feature. Optimism is a choice, not a read on the data. He can make the heavy case. He just thinks riding it takes you to the bottom. Your business partners decide your future. One call at the start of COVID produced a million dollars ACH'd the same day, no repayment date attached. Hunt for structural cost advantages. The distillery puts a premium spirit in the well at half the cost of Tito's, plus a story nobody can copy. Beverage is food. Same sourcing, same standards, same care as the kitchen. No soda guns, no bag-in-box syrup. Retire the word "mocktail." Zero-proof drinks go on the main menu, same glass, same garnish. The opener becomes "let's get a drink in everybody's hand, with or without alcohol." Chase items per guest, not alcohol. Two rounds, three courses, chocolates to go. Train servers to signal flexibility on portions and to-go boxes so guests hear permission, not pressure.
