When business models work: Buc-ees Edition

10,938 Views | 160 Replies | Last: 3 days ago by 12thMan86
aggiehawg
How long do you want to ignore this user?
AG
Twenty-two minute podcast on the history of Buc-ees and their success without going public nor selling one share of equity. Customer satisfaction, the number of times a consumer needs to see a brand before a purchasing decision is made the first time (billboard related) and superior customer service to bring them back over and over.

Well paid employees deliver better service which brings customers back and justifies paying those employees more. Minimal marketing besides billboards, yet a business worth billions has been built up.

Many of the methods Buc-ees has employed to grow like that seem pretty obvious yet time and time again other chains devolve away from their original vision and go downhill from there. Going public and cashing in or selling to a holding company that is run by hedge fund types has ruined many a former profitable brand,

So for anyone unfamiliar with how Buc-ees was created and structured, this is full of information that could easily be applied in other retail settings.

HTownAg98
How long do you want to ignore this user?
I remember their big thing when they started was clean restrooms, and plenty of them. Seems like a great way to start.
UTExan
How long do you want to ignore this user?
They got the location and well paid employees part perfectly.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
DrEvazanPhD
How long do you want to ignore this user?
HTownAg98 said:

I remember their big thing when they started was clean restrooms, and plenty of them. Seems like a great way to start.

Who knew clean bathrooms would become a license to print money
samurai_science
How long do you want to ignore this user?
They have the worst chop beef sandwiches, buyer be warned.
doubledog
How long do you want to ignore this user?
HTownAg98 said:

I remember their big thing when they started was clean restrooms, and plenty of them. Seems like a great way to start.

50+ clean toilets and taffy that is amazing. Good plan.

On the way to IAH we stopped at Buc-ee's, on 290, with colleague visiting from Poland. I stopped for a pit stop, when I found my friend he was at the counter with about $150 worth of Buc-ees merch that he was taking home to family. He was very impressed at a truck stop larger than most European department stores.
ShinerAggie
How long do you want to ignore this user?
AG
DrEvazanPhD said:

HTownAg98 said:

I remember their big thing when they started was clean restrooms, and plenty of them. Seems like a great way to start.

Who knew clean bathrooms would become a license to print money

I thought this was common knowledge for any man with females in his household!

________________________________________________________
“Those who cannot change their minds cannot change anything.”
- George Bernard Shaw
schmellba99
How long do you want to ignore this user?
AG
DrEvazanPhD said:

HTownAg98 said:

I remember their big thing when they started was clean restrooms, and plenty of them. Seems like a great way to start.

Who knew clean bathrooms would become a license to print money

All came about from a road trip that Beaver and his ex wife were on. They stopped at a gas station to get gas and she needed to use the restroom. Beaver took note of how disgusted she was with the restroom and developed the business strategy that turned him into a billionaire - when mamma wants to stop, you stop. And mamma will go out of her way to stop where the bathrooms are clean.

He also changed the entire model of what a gas station/convenience store is, at least here in the south - Bucees figured out that wide isles, open areas, good lighting and gas pumps that aren't hazmat spill areas are much preferred over narrow isles with poor lighting and the usual run of the mill selection of candy and beef jerky. I can't think of a single new gas station that I've been in over the last ~15 years that isn't essentially a Bucees wannabe.

Now he just needs to get back to where he was with his food quality and start hiring gas pump cops that keep buttholes from parking at a pump while they go inside for an hour.
AlexNguyen
How long do you want to ignore this user?
I've never seen videos of people fighting inside a Buccee's, nor rampant theft or general nuisance/harassing behavior. Maybe it's because Buccee's are only in the south thus far.
torrid
How long do you want to ignore this user?
AG
Family-run business in for the long haul, not pushed by Wall Street investors to expand too quickly and dilute the quality/brand name.
Gigem314
How long do you want to ignore this user?
AG
samurai_science said:

They have the worst chop beef sandwiches, buyer be warned.

Uh, no. They have one of the best chop beef sandwiches for a non-BBQ place that I've ever had. Easy lunch on the go when in a pinch.
torrid
How long do you want to ignore this user?
AG
AlexNguyen said:

I've never seen videos of people fighting inside a Buccee's, nor rampant theft or general nuisance/harassing behavior. Maybe it's because Buccee's are only in the south thus far.


Everyone's packing.
Whoop2oo1
How long do you want to ignore this user?
AG
samurai_science said:

They have the worst chop beef sandwiches, buyer be warned.


I have a feeling you are in the minority with this opinion.
aggiehawg
How long do you want to ignore this user?
AG
No need for subsidies from the government (tax abatements are a local issue and not a direct subsidy) nor having to give away parts of the equity (meaning control) for capitol to fund expansion.

The branding is now international with Europeans excited to plan their US visits around a visit to Buc-ees and vlogging about them.

This podcast does try to cast some shade on them for being overzealous in protecting their trademark but also acknowledge that such is legally required to keep the trademark.
Capt. Augustus McCrae
How long do you want to ignore this user?
AG
Gigem314 said:

samurai_science said:

They have the worst chop beef sandwiches, buyer be warned.

Uh, no. They have one of the best chop beef sandwiches for a non-BBQ place that I've ever had. Easy lunch on the go when in a pinch.


For damn near $9 for just the sandwich, it's mediocre at best. It would be a good sandwich if it was $3.
BaileyAg
How long do you want to ignore this user?
AG
HTownAg98 said:

I remember their big thing when they started was clean restrooms, and plenty of them. Seems like a great way to start.


I can remember road trips in 70's/80's where the gas station bathrooms looked like murder scenes.
A great way to start indeed
Booma94
How long do you want to ignore this user?
AG
AlexNguyen said:

I've never seen videos of people fighting inside a Buccee's, nor rampant theft or general nuisance/harassing behavior. Maybe it's because Buccee's are only in the south thus far.

Luling on a Saturday afternoon is likely the closest you'll get to seeing that.
Tree Hugger
How long do you want to ignore this user?
AG
Quote:

For damn near $9 for just the sandwich, it's mediocre at best. It would be a good sandwich if it was $3.


$9 is "cheap" for a brisket sandwich these days. Their brisket is far from the best I have ever had, but it is superior to just about any other "gas station" brisket sandwich you will ever find.
Secolobo
How long do you want to ignore this user?
AG
samurai_science said:

They have the worst chop beef sandwiches, buyer be warned.

It's chopped beef...
HTownAg98
How long do you want to ignore this user?
One complaint I have is their traffic management. They need better drive markings. I feel like I'm driving in Mexico when I try to navigate around the fuel pumps.
aggiehawg
How long do you want to ignore this user?
AG
Tree Hugger said:

Quote:

For damn near $9 for just the sandwich, it's mediocre at best. It would be a good sandwich if it was $3.


$9 is "cheap" for a brisket sandwich these days. Their brisket is far from the best I have ever had, but it is superior to just about any other "gas station" brisket sandwich you will ever find.

The Hubs just paid $9 for a brisket sandwich at our local (very small convenience store/truck stop) just yesterday. I as surprised at first but it was on a very large bun with a ton of meat. It was pretty good and given what briket by the pound goes for these days, a fair price for that amount of meat.
rgag12
How long do you want to ignore this user?
AG
Capt. Augustus McCrae said:

Gigem314 said:

samurai_science said:

They have the worst chop beef sandwiches, buyer be warned.

Uh, no. They have one of the best chop beef sandwiches for a non-BBQ place that I've ever had. Easy lunch on the go when in a pinch.


For damn near $9 for just the sandwich, it's mediocre at best. It would be a good sandwich if it was $3.


I feel sorry for the people that apparently do not have access to at good BBQ and can't see this.
TX_COWDOC
How long do you want to ignore this user?
AG
schmellba99 said:


….hiring gas pump cops that keep buttholes from parking at a pump while they go inside for an hour.


It's never been an hour for me. Knowing first hand of smash and grabs in close in / side by
side parking, I have no problem parking at the pump.
www.southpawprecision.com
Type 07 FFL / Class 2 SOT
Nightforce Optics Dealer
AGM Night Vision Dealer
ToddyHill
How long do you want to ignore this user?
AG

Quote:

One complaint I have is their traffic management.

I have to believe one of the worst traffic issues in their system is accessing the Sevierville, Tennessee unit off exit 407 on Interstate 40. They built that Buc-ee's on a large tract of vacant land belonging to the Cherokee Nation. Once word got out Buc-ee's was building there, the Cherokee Nation was able to sign on other businesses. The traffic is so bad that TDOT (Tennessee Department of Transportation) announced future plans to build another exit at mile marker 408 that will circle back to the Buc-ee's.

And just my opinion...given the lack of beef bbq in East Tennessee, their brisket is pretty darn good.


aggiehawg
How long do you want to ignore this user?
AG
rgag12 said:

Capt. Augustus McCrae said:

Gigem314 said:

samurai_science said:

They have the worst chop beef sandwiches, buyer be warned.

Uh, no. They have one of the best chop beef sandwiches for a non-BBQ place that I've ever had. Easy lunch on the go when in a pinch.


For damn near $9 for just the sandwich, it's mediocre at best. It would be a good sandwich if it was $3.


I feel sorry for the people that apparently do not have access to at good BBQ and can't see this.

You do understand Buc-ees caters to travelers, don't you? People that don't want to stop at full serve restaurants? Ever really see a bunch of full serve BBQ joints on an interstate outside of a city?
Silent For Too Long
How long do you want to ignore this user?
I use to be a manager at Buc-ee's and their attention to detail is 2nd to none.

Clean, Friendly, and In-Stock

For most companies a mission statement like that is a gimmick. At Buc-ee's its the Bible.

Employees are fired on the spot for having their cellphone on. 1 minute late is late, and 3 lates in a 6 month period is immediate termination, no matter who you are.

That, and the pay, helps them ensure a much higher level of employee.
Hardcore Greg
How long do you want to ignore this user?
HTownAg98 said:

I remember their big thing when they started was clean restrooms, and plenty of them. Seems like a great way to start.

Yep, this. I used to avoid gas stations and truck stops like the plague on road trips back in the day. Often going out of my way to at least find a hotel with a lobby bathroom or an Olive Garden or something. Buc-ees bathrooms still deliver, based on my experience.
Ag_of_08
How long do you want to ignore this user?
AG
The pay is the only reason that vaguely works. Don't pay that well, and you'll never have a decent employee, just a carousel of crap.
torrid
How long do you want to ignore this user?
AG
I guarantee once the NC location opens, it will be one of the best barbecue locations in the state. Even with Cornyn-like brisket.
HTownAg98
How long do you want to ignore this user?
ToddyHill said:


Quote:

One complaint I have is their traffic management.

I have to believe one of the worst traffic issues in their system is accessing the Sevierville, Tennessee unit off exit 407 on Interstate 40. They built that Buc-ee's on a large tract of vacant land belonging to the Cherokee Nation. Once word got out Buc-ee's was building there, the Cherokee Nation was able to sign on other businesses. The traffic is so bad that TDOT (Tennessee Department of Transportation) announced future plans to build another exit at mile marker 408 that will circle back to the Buc-ee's.

And just my opinion...given the lack of beef bbq in East Tennessee, their brisket is pretty darn good.




I was speaking more about their internal circulation, but ingress/egress is sometimes a hope and pray situation. Getting out of the one in New Braunfels at FM 306 is that way.
aggiehawg
How long do you want to ignore this user?
AG
Quote:

And just my opinion...given the lack of beef bbq in East Tennessee, their brisket is pretty darn good.

More pork based, correct? I was wondering about how beef brisket will translate in other pork preferred states they are planning to expand in? I know Arkansas is more BBQ pork forward.
WestAustinAg
How long do you want to ignore this user?
AG
torrid said:

Family-run business in for the long haul, not pushed by Wall Street investors to expand too quickly and dilute the quality/brand name.

Not answerable to shareholders who want every quarter to beat some "expert" analyst's estimate of earnings per share. Gives the company time to make changes, develop strategies and work to improve things without worrying about the next 90 days.
Silent For Too Long
How long do you want to ignore this user?
As far as their brisket goes, I will say that while there are certainly mom and pops that do it better, no one on earth maintains their volume while keeping a pretty consistent control on quality.

A single Buc-ee's can fire through 200 briskets a day on the weekends.

It is also where the majority of their profit comes from. Buc-ee's doesn't make money on gas and only pennies on the dollar on prepackaged big brand items like coke. The lion's share of their margins come from the food they make on site and the gifts department.
ToddyHill
How long do you want to ignore this user?
AG
Quote:

I use to be a manager at Buc-ee's and their attention to detail is 2nd to none.

Did you like working for them? My gut feeling is that if you stayed within their boundaries it was a good place to work.

About three years ago I talked to one of the cashier's at the Buc-ee's off mile marker 90 or 91 on I-75 in Southern Kentucky. About 25 miles south of Lexington. She was about my age (mid-60'). She said the pay was great given the minimal work options in the area. But she also said you work hard the entire shift.
HTownAg98
How long do you want to ignore this user?
rgag12 said:

Capt. Augustus McCrae said:

Gigem314 said:

samurai_science said:

They have the worst chop beef sandwiches, buyer be warned.

Uh, no. They have one of the best chop beef sandwiches for a non-BBQ place that I've ever had. Easy lunch on the go when in a pinch.


For damn near $9 for just the sandwich, it's mediocre at best. It would be a good sandwich if it was $3.


I feel sorry for the people that apparently do not have access to at good BBQ and can't see this.

I don't think anyone going into a modern c-store is expecting the best bbq sandwich. For sure, those type of places used to exist a long, long time ago, but even then they were a rarity. It's a decent sandwich at a not terrible price for a grab-and-go crowd.
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.