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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.


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KEYWORDS: buccees; revenuemining; wallstreet
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To: Twotone
By contrast, Las Vegas tourism is down dramatically — in no small part because of the city's outrageous pricing

I saw a video about Las Vegas's problems. In it I learned about triple zero roulette. They aren't ripping you off enough with 0 and 00 on the wheel. Now they need a 000 space. How soon will there ve as many green spaces as red or black?

61 posted on 09/02/2025 11:46:36 AM PDT by KarlInOhio (I refuse to call the left "progressive" because I do not see slavery to the government as progress.)
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To: Twotone

“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.”

Well that’s the point about lower gas prices...it allows people to have more money to buy more expensive items that have a high quality shine to them! Higher gas prices mean less money that people will have, to buy higher or even lower priced items regardless of quality.


62 posted on 09/02/2025 11:51:21 AM PDT by mdmathis6 (A horrible historic indictment: Biden Democrats plunging the world into war to hide their crimes!)
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To: mdmathis6

Well that’s the point about lower gas prices...it allows people to have more money to buy more expensive items that have a high quality shine to them! Higher gas prices mean less money that people will have, to buy higher or even lower priced items regardless of quality.


A lesson the folks running Vegas need to remember, the less money you have to spend on food, parking, etc. the more money they’ll have for gambling.


63 posted on 09/02/2025 11:55:02 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: Twotone; texas booster; luvie

I used to pick up breakfast tacos at the ORIGINAL Buc ees, in Brazoria, on the way to a relative’s house.

It was TINY, but, the breakfast tacos were THE best. They then added in their fudge .... additional locations ... and, the rest is Texana history!


64 posted on 09/02/2025 11:58:12 AM PDT by Jane Long (Jesus is Lord!)
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To: Twotone

The food is nothing to write home about. They seriously need to upgrade their bread and make sure to trim the brisket better, so that half your sandwich isn’t pure fat. The sauce is too sweet. I gave up on the brisket sandwiches and started getting the prewrapped chilled sandwiches.

The bathrooms are great. I have noticed they have made all of the competition get better about their bathrooms as well. Stopped in a Pilot yesterday with super clean bathrooms. I didn’t use to see that.


65 posted on 09/02/2025 12:16:38 PM PDT by Codeflier (Don't worry....be happy )
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To: BatGuano

That is one of the reasons they created them with all the gas pumps. They intended for people to walk in from there and go to the bathroom and get some food items. It’s a feature, not a bug.


66 posted on 09/02/2025 12:19:52 PM PDT by Codeflier (Don't worry....be happy )
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To: Theodore R.
I have always found that Wal-Mart has lower gasoline prices than Buc-ee’s.

In our area south of Houston, WM is $2.43. Buc-ee's right down the road is $2.32. And according to GasBuddy, that's pretty much the case everywhere I checked.

67 posted on 09/02/2025 12:20:10 PM PDT by chaosagent ( )
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To: Jane Long
It was TINY

Like this one in West Texas?

68 posted on 09/02/2025 12:49:00 PM PDT by ShadowAce (Linux - The Ultimate Windows Service Pack )
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To: rbbeachkid

with seed?


69 posted on 09/02/2025 12:53:15 PM PDT by BigFreakinToad (All she is, is cackles in the wind.)
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To: Twotone

Weee loveee Buc-ees and are blessed to have them all over our state......it’s a shopping experience like no other......;)


70 posted on 09/02/2025 12:54:04 PM PDT by Dawgreg
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To: ShadowAce
LOL ... no, not quite THAT tiny ... although, that is YUGE :-)

It was an actual store.

Love that artwork, tho ... reminds me of this Texas iconic art ...

PRADA Marfa ...


71 posted on 09/02/2025 12:55:17 PM PDT by Jane Long (Jesus is Lord!)
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To: chaosagent

You’re in our granddaughter’s area.....:)


72 posted on 09/02/2025 12:56:13 PM PDT by Dawgreg
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To: BigFreakinToad

Try the pulled pork. It’s mighty tasty.


73 posted on 09/02/2025 12:56:43 PM PDT by absalom01 (You should do your duty in all things. You cannot do more, and you should never wish to do less.)
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To: subterfuge

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

Make it into a vacation. You’ll be surprised......pleasantly....lol


74 posted on 09/02/2025 12:58:04 PM PDT by Dawgreg
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To: Twotone

Very consistent quality and service with an exceptionally clean environment.

Everybody seems happy to be there.


75 posted on 09/02/2025 1:16:29 PM PDT by Racketeer
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To: Ikeon

Y’all!!

Next time you’re at Buccee’s, get the Philly Cheesesteak Burrito!!!

You will NOT be disappointed.


76 posted on 09/02/2025 1:25:05 PM PDT by Mathews (I have faith Malachi is right!!! Any day now...)
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To: dfwgator

Vegas is now stuck in a bind...keep prices high and lose customers or lower prices and become a giant Carnival cruise ship..


77 posted on 09/02/2025 1:51:26 PM PDT by mowowie
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To: Jane Long

heh—I’ve been there, too.....


78 posted on 09/02/2025 2:16:33 PM PDT by ShadowAce (Linux - The Ultimate Windows Service Pack )
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To: mowowie

Vegas’ biggest problem is online gambling - especially sports.


79 posted on 09/02/2025 2:41:38 PM PDT by FLNittany
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To: FreedomPoster

Makes sense.


80 posted on 09/02/2025 2:56:20 PM PDT by subterfuge (I'm a pure-blood!)
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