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Buc-ee’s gets rich by doing everything Wall Street hates
The Blaze ^ | September 1, 2025 | Buck Throckmorton

Posted on 09/02/2025 9:36:16 AM PDT by Twotone

Buc-ee’s may be technically categorized as a “convenience store,” but for millions of Americans, it’s more like a roadside pilgrimage. No matter how big its new stores are, they remain packed. The chain has a fanatically loyal customer base, and it has become a destination for those not fortunate enough to have a Buc-ee's nearby.

What’s the draw? Buc-ee's has enormous restrooms that are immaculately clean, cheap gas with often more than 100 pumps, a kitschy-fun shopping experience, and exceptional food — including Texas barbecue and an in-house bakery. In addition, it’s heavily staffed with low-turnover, career employees.

Buc-ee's is thriving by rejecting numerous destructive “best practices” currently embraced by corporate America and private equity.

Fortunately for Buc-ee's, it’s still privately owned by its founders, Arch Aplin and Don Wasek, whose business acumen came from running convenience stores and working directly with customers and employees. They weren’t poisoned by an elite business school education, where modern executives learn that customers are prey and employees are a pestilence whose compensation reduces executive bonuses.

The winning formula

The magic formula to Buc-ee's success is built on a very simple foundation: clean restrooms and cheap gas. It first developed its cult following in Texas by being a place you could always count on for a clean restroom while driving the interstates. Good candies, food, and pastries then added to the appeal.

Nowadays, the same foundation is in place: clean restrooms and cheap gas. But once a customer walks inside to use the restroom, a wonderland of food and products awaits. The food and merchandise are not necessarily cheap, but they’re high-quality, and many customers enjoy making those purchases as part of their Buc-ee's experience. But it’s still possible to visit Buc-ee's for gas and a potty stop without paying a premium. Standing up to Wall Street

By contrast, Las Vegas tourism is down dramatically — in no small part because of the city's outrageous pricing. The old Vegas model of cheap buffets and affordable rooms to get people into the casinos was not unlike Buc-ee's lure of clean restrooms and cheap gas. But the Wall Street wizards now in control of Vegas have ditched the old model in favor of revenue-mining every possible moment of a visitor’s stay.

As Jeffrey Turner explained on his Substack, “The MBAs and data-crunchers at the corporate casino have installed Disneyland pricing into their models.”

Buc-ee's still understands the power of the previous business model that Las Vegas abandoned: Provide a high-quality “loss leader” — or two — to get the customers in the door, and then provide high-margin products that entice them to open their wallets.

For those who work at Buc-ee's, it’s more than a job — it’s a career. Buc-ee's doesn’t consider its staff to be “unskilled” labor who deserve near-minimum wages. Their excellent compensation results in lower turnover and better customer service. The food at Buc-ee's might be a little more expensive than at a nearby fast-food joint, but it’s of much higher quality and served by professional staff — things customers will gladly pay a premium for.

As I discussed in a recent column, revenue mining has become an all-too-common corporate business strategy these days, especially in private equity. Revenue mining exploits customers while slashing costs to the bone, shipping jobs oversees, firing veteran employees who know the business best, wrecking customer service, downgrading quality, and killing innovation. That pernicious strategy may briefly produce record short-term profits, but it also destroys customer loyalty and brand value.

I shudder to think of the destruction that would be brought upon the Buc-ee's business model if private equity decided to “fix” its operations.

The famous Buc-ee's restrooms by themselves produce no revenue, and they occupy significant square footage. Its full-time staffers make about $40,000 annually simply to keep these restrooms clean. In other words, the restrooms are a loss leader, drawing customers in but producing no revenue. That’s anathema to private equity.

Private equity would slash the restroom maintenance, eliminate or outsource the cleaning crews, and decrease their square footage. Or maybe they’d try to charge admission to the restrooms. But they would undoubtedly kill the golden goose — the restrooms — and thus lose the golden egg that gets customers to the checkout registers.

A job sign outside a Buc-ee's in Alabama recently showed that several manager positions within a Buc-ee's pay in excess of $100,000 per year, and the store’s general manager can earn more than $200,000 per year. Wall Street or private equity would waste no time in slashing Buc-ee's employee head count and compensation, assuming it would increase the bottom line. But it wouldn’t; it would simply destroy the staffing that makes Buc-ee's success possible.

Private equity would also be aghast at the “lost revenue” from offering below-market gas prices. Estimates are that Buc-ee's sells about 400,000 gallons of gas per day. Just charging 5 cents more per gallon would bring in an additional $7 million annually, all things being equal.

But all things aren’t equal.

A success story worth copying

Buc-ee's sells such a high volume of gas because its prices are lower. Buc-ee's understands that a lower gross profit per gallon with higher volume produces more gross profit than lower volume at a higher price. But more importantly, those swarms of cars fueling up on inexpensive gas are full of people who stroll inside and purchase high-margin discretionary products. It’s a simple concept that is alien to rapacious financial wizards, but one that’s well understood by retailers on the ground.

Buc-ee's success is a refutation of prevailing business wisdom. May it serve as an example to the next generation of business leaders on the importance of developing a loyal customer base with abundant staff, career wages, great customer service, high-quality products, and an enjoyable customer experience.


TOPICS:
KEYWORDS: buccees; revenuemining; wallstreet
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To: dangus

Good comment


21 posted on 09/02/2025 10:22:20 AM PDT by ClearCase_guy (Society has no reward for following the rules any more)
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To: j.havenfarm

Those things are like Sugar Smacks on steroids.

A couple pro tips for Buc-ee’s.

There are no tables. If you don’t want to eat in your car (say this time of year, when the weather is nice), the small shopping carts make a decent stand around impromptu table.

They have great prices on Arizona Arnold Palmers in the bottle in the drink cooler. But they also have it buried in the plethora of fountain drink choices!


22 posted on 09/02/2025 10:23:08 AM PDT by FreedomPoster (Islam delenda est)
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To: DarrellZero
Buccees is brilliant although I wouldn’t call their gas “cheap.”

Here in the area south of Houston, the median brand-name station price is about $2.59. Wal-Mart yesterday was $2.43.

The Buc-ee's right down the road a couple of miles is $2.32. Everywhere we've traveled along I-10, east and west of Houston, they're always the cheapest at that Interchange.

23 posted on 09/02/2025 10:25:10 AM PDT by chaosagent ( )
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To: Dr. Sivana; SecondAmendment
On the other hand, Chick-Fil-A remains private, but since Truett Cathy died, the children have moved away from the vision chasing $$$, expansion, and public woke respect.

FTFY

24 posted on 09/02/2025 10:25:33 AM PDT by FreedomPoster (Islam delenda est)
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To: Twotone

I’ve never been to Buc-ee’s. Seems odd that the closest one to Orlando is in Daytona.


25 posted on 09/02/2025 10:25:45 AM PDT by subterfuge (I'm a pure-blood!)
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To: BigFreakinToad

I may have to give that a try. I think my son tried it and liked it.


26 posted on 09/02/2025 10:26:42 AM PDT by FreedomPoster (Islam delenda est)
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To: subterfuge

Not really. They’re expanding out from TX, and hit major Interstate locations. Anyone headed to Mouseland from the East Coast has to go through Daytona to get there. It’s all about real estate prices at interchanges and car counts. And closer to Orlando, you might have people blow off stopping at Buc-ee’s to get to their hotel. They’re on the north side of Daytona, so that covers folks bound for both Orlando and Space Coast.


27 posted on 09/02/2025 10:32:13 AM PDT by FreedomPoster (Islam delenda est)
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To: Dr. Sivana

Exactly - everytime I go to In-n-Out I think about it being true to the original mcdonalds concept. bright clean stores, fast service, consistent good food.


28 posted on 09/02/2025 10:36:45 AM PDT by delapaz
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To: Twotone

I went to my first one last week.

Lots of stuff off the highway that I will never buy.

But…I am not in anyone’s target group. Except Medicare Supplemental plans.


29 posted on 09/02/2025 10:38:31 AM PDT by Vermont Lt
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To: Dr. Sivana

The best supermarket companies are privately owned, too. Think Wegman’s, Publix, H-E-B and Hy-vee. Also Marc’s and Heinen’s in the Cleveland area and Martin’s in South Bend-Elkhart, Ind.

When I think of Buc-ee’s food, I think of the Beaver Nuggets and pecan Kolaches. There are lots of things to try there. They are actually building one in the Dayton, Ohio area (off I-70 in Huber Heights). The men who dreamed up Buc-ee’s really deserve their success.


30 posted on 09/02/2025 10:39:06 AM PDT by nd76
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To: mikey_hates_everything

Buc-ee’s is privately held.

Never gonna happen.


31 posted on 09/02/2025 10:42:15 AM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: FreedomPoster

at least at ours, they don’t skimp on the turkey.


32 posted on 09/02/2025 10:48:33 AM PDT by BigFreakinToad (All she is, is cackles in the wind.)
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To: Dr. Sivana

Sadly true about Chick-Fil-A. I did some design work for Mr Cathey years ago. He was a kindly old school Southern gentleman. May he rest in peace.


33 posted on 09/02/2025 10:48:56 AM PDT by kalee
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To: Twotone

We call Buc-ees “The Gass Pro Shop”


34 posted on 09/02/2025 10:57:44 AM PDT by Autonomous User (During times of universal deceit, telling the truth becomes a revolutionary act.)
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To: Twotone

We have a Buc-ee’s about 20 miles away.
The store is a kick and, if you like Jerky they have a long wall of what seems to be all the types in the world!
Only ONE COMPLAINT....

Yes they have 120 gas pumps!
But, INCONSIDERATE DOPES leave their cars at the pumps to go in and browse the store!
The Parking spots are located beyond most of the pumps.

(I’m thinking that those dopes are Democrats!)


35 posted on 09/02/2025 10:59:30 AM PDT by BatGuano (Quantus Tremor Est futurus.)
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To: nd76

Add “employee owned” Woodman’s (WI and IL). Exceptional stores.


36 posted on 09/02/2025 10:59:33 AM PDT by Dr. Sivana ("Whatsoever he shall say to you, do ye." (John 2:5))
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To: delapaz
bright clean stores, fast service, consistent good food.

Focused menu, too. The shake machine is never broken. No screens. (kroc wouldn’t even allow a payphone in his era. Our local McDonald’s had one on the property line with the Gulf starion next door.
37 posted on 09/02/2025 11:02:48 AM PDT by Dr. Sivana ("Whatsoever he shall say to you, do ye." (John 2:5))
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To: Twotone

My friend has owned a succesful upscale restaurant for 30+ years. His two maxims are “pay a good chef more than you think he is worth” and “keep the bathrooms immaculate.”

I’ve been to his place often. The mens room is tiled and sterile and the ladies restroom is like an oasis. Not only clean, but with candles, scents, soft music.

He’ll often clean the bathrooms himself, so his staff know what the standard is - and if the boss is doing it, they know they had better do it also.


38 posted on 09/02/2025 11:04:59 AM PDT by PGR88
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To: BigFreakinToad

Best commercial Blackberry jam I’ve found.


39 posted on 09/02/2025 11:05:29 AM PDT by rbbeachkid (Get out of its way and small business can fix the economy.)
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To: PGR88
His two maxims are “pay a good chef more than you think he is worth” and “keep the bathrooms immaculate.”

Yep, great food and clean premises are a must. I'd only add great service to that list.

40 posted on 09/02/2025 11:07:03 AM PDT by 1Old Pro
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