{"id":4138,"date":"2015-12-08T23:04:22","date_gmt":"2015-12-09T04:04:22","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/porcelain-god-the-buc-ees-empire\/"},"modified":"2015-12-09T18:04:09","modified_gmt":"2015-12-09T23:04:09","slug":"porcelain-god-the-buc-ees-empire","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/porcelain-god-the-buc-ees-empire\/","title":{"rendered":"Porcelain God: The Buc-ee\u2019s Empire"},"content":{"rendered":"<p>In 1982, 23 year-old Arch &#8220;Beaver&#8221; Aplin wrote a hot check, bought land in Lake Jackson, and launched a Texan gas station empire (1).<\/p>\n<p>Today, Aplin has no problems clearing his checks and Buc-ee&#8217;s boasts 32 locations throughout Texas. Some are as large as 60,000 square feet and attract nearly two million cars per year. Though company financials are private, new stores are estimated to generate $12-20M in annual sales (2), and Buc-ee&#8217;s continues to methodically open new locations along the Texan freeway system at a rate of approximately two per year.<\/p>\n<p>Along the way, Buc-ee&#8217;s created an iconic brand and developed a cult following with a unique business model and creative advertising. But it all started in the bathroom.<\/p>\n<figure id=\"attachment_4142\" aria-describedby=\"caption-attachment-4142\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/ash-associates-llc-buc-ee-s-multiple-locations.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4142\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/ash-associates-llc-buc-ee-s-multiple-locations-300x153.jpg\" alt=\"Buc-ee's stores can span multiple acres and house nearly 100 gas pumps\" width=\"300\" height=\"153\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/ash-associates-llc-buc-ee-s-multiple-locations-300x153.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/ash-associates-llc-buc-ee-s-multiple-locations-600x305.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/ash-associates-llc-buc-ee-s-multiple-locations.jpg 800w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-4142\" class=\"wp-caption-text\">Buc-ee&#8217;s stores can span multiple acres and house nearly 100 gas pumps<\/figcaption><\/figure>\n<p><strong>Buc-ee&#8217;s Business Model<\/strong><\/p>\n<p><strong><em>\u00a0<\/em><\/strong><em>Mr. Aplin says he realized the traveling public would drive a little farther for the promise of a super-scrubbed restroom (3)<\/em><\/p>\n<p>Part one of the Buc-ee\u2019s business model is to make the gas station a destination instead of a necessity. That starts with clean bathrooms. The <em>Wall Street Journal<\/em> called Buc-ee\u2019s &#8220;gleaming\u201d toilets its\u00a0\u201cpi\u00e8ce de r\u00e9sistance.\u201d Buc-ee\u2019s website has an entire page devoted to \u201ccleanest restroom\u201d awards it has won \u2013 including a 2012 laurel for \u201cbest bathrooms in the country\u201d<\/p>\n<figure id=\"attachment_4099\" aria-describedby=\"caption-attachment-4099\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/bathroom.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4099\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/bathroom-300x130.jpg\" alt=\"&quot;Cleanest Bathrooms in America&quot;\" width=\"300\" height=\"130\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/bathroom-300x130.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/bathroom.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/bathroom-600x260.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-4099\" class=\"wp-caption-text\">&#8220;Best Bathrooms in the Country&#8221;<\/figcaption><\/figure>\n<p>Beyond the bathroom, the shopping experience is pleasant &#8211; the stores, while busy, are not over-crowded and there are not long lines at the gas pumps. Visiting a Buc-ee\u2019s recalls a trip to a tourist destination more than a gas station \u2013 Texan d\u00e9cor fills the store, and even the bathrooms are filled with art.<\/p>\n<figure id=\"attachment_4104\" aria-describedby=\"caption-attachment-4104\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/buc-ees.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4104\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/buc-ees-300x173.jpg\" alt=\"Texan decor fills Buc-ee's stores\" width=\"300\" height=\"173\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/buc-ees-300x173.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/buc-ees-1024x589.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/buc-ees-600x345.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/buc-ees.jpg 1403w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-4104\" class=\"wp-caption-text\">Texan decor fills Buc-ee&#8217;s stores<\/figcaption><\/figure>\n<p>Buc-ee\u2019s acquires <em>new<\/em> customers with aggressive branding and creative advertising. The Buc-ee beaver logo is ubiquitous on hats, shirts, coolers, and countless other memorabilia. Its advertising is cheeky and humorous, often referencing the clean bathrooms.<\/p>\n<figure id=\"attachment_4111\" aria-describedby=\"caption-attachment-4111\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/buceesoutdoor4.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4111\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/buceesoutdoor4-300x95.jpg\" alt=\"Buc-ee's billboards often reference the bathroom experience\" width=\"300\" height=\"95\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/buceesoutdoor4-300x95.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/buceesoutdoor4.jpg 568w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-4111\" class=\"wp-caption-text\">Buc-ee&#8217;s billboards often reference the bathroom experience<\/figcaption><\/figure>\n<p>Part Two of Buc-ee\u2019s business model is to focus on \u201cinside\u201d sales. Aplin estimates that a typical gas station makes two-thirds of its revenue from gas. Buc-ee\u2019s\u2019 ratio is flipped \u2013 2\/3 of its revenue comes from \u201cinside\u201d sales (4). These include convenience store standards like\u00a0potato chips and pop, but it also includes Buc-ee\u2019s branded snacks like\u00a0camouflage-colored popcorn, Beaver Nuggets, and branded beef jerkey (there&#8217;s even a recipe list <a href=\"https:\/\/www.buc-ees.com\/recipes.php\">https:\/\/www.buc-ees.com\/recipes.php<\/a>), as well as merchandise ranging from hats to headphones.<\/p>\n<figure id=\"attachment_4122\" aria-describedby=\"caption-attachment-4122\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/headphones.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4122\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/headphones-300x200.jpg\" alt=\"Buc-ee's headphones\" width=\"300\" height=\"200\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/headphones-300x200.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/headphones.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/headphones-600x400.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-4122\" class=\"wp-caption-text\">Buc-ee&#8217;s headphones<\/figcaption><\/figure>\n<p><strong>Buc-ee\u2019s Operating Model<\/strong><\/p>\n<p>The first tenet of Buc-ee\u2019s operating model is the stores themselves. Buc-ee\u2019s are enormous, well-staffed, well-lit, and state-of-the art \u2013 words not commonly associated with gas stations. This serves the business model well \u2013 large, well-staffed stores help avoid crowded stores or long lines at the register. 18-wheelers are forbidden from the parking lots and gas pumps to ensure that minivans and pickup trucks don\u2019t have to wait in line or deal with traffic jams.<\/p>\n<p>The second tenet is Buc-ee\u2019s staffing model. Buc-ee\u2019s employees are paid handsomely, with starting salaries nearly 50% above minimum wage and 40% above industry averages (5). Paying well helps Buc-ee\u2019s deliver \u201cfriendly\u201d service and further contributes to the experiential nature of a Buc-ee\u2019s visit.<\/p>\n<p>The employees are also useful for\u00a0cleaning\u00a0bathrooms. \u201cThere\u2019s literally someone in there (cleaning) all the time,\u201d says Aplin. While expensive, this investment in cleanliness is necessary to reinforce the core of the business model (6).<\/p>\n<p>The final tenet of Buc-ee\u2019s operating model is a deliberate approach to expansion. Buc-ee\u2019s is effective at expanding for three reasons.<\/p>\n<ol>\n<li>Buc-ee\u2019s picks its locations well. New stores are built \u201cthe right distance\u201d from major cities, close enough to large populations, but far enough away so that\u00a0land is cheap enough to afford multi-acre lots for the stores (7).<\/li>\n<li>Buc-ee\u2019s is conservative with how it funds its expansion &#8211; typically using cash on its own balance sheet (8)<\/li>\n<li>Buc-ee\u2019s business and operating models reinforce its expansion strategy. Its \u201cdestination\u201d appeal allows it more flexibility in where it builds its stores. The fact that gas is a lower percent of revenue protects Buc-ee\u2019s from some of the volatility associated with gas price fluctuations, making its future cash position\u00a0more predictable.<\/li>\n<\/ol>\n<p><strong>Conclusion<\/strong><\/p>\n<p>It\u2019s easy to laugh at the Buc-ee\u2019s model because of the centrality of the bathroom to its story. But, while unsexy, Buc-ee\u2019s clean bathrooms reveal important truths about a well-run business.<\/p>\n<p>First, Buc-ee\u2019s business and operating models reinforce each other. The stores it builds, the items it puts on the shelves, the people it hires, and the way it expands all enables and is enabled by its \u201cgas station as an experience\u201d model.<\/p>\n<p>Second, Buc-ee\u2019s realized out what customers really care about. Most of us don\u2019t think about the brands of the gas stations we stop at, but we all hate their dirty bathrooms. Aplin realized that a traveling salesperson will drive out of his way so he can change into his suit in a clean bathroom. A road-tripping mother will tell her kids to \u201chold it\u201d for another half-hour so she can use a clean toilet. Most gas-stations see their bathrooms as an afterthought, but their customers don\u2019t, and neither does Aplin.<\/p>\n<p>&nbsp;<\/p>\n<p>(1)\u00a0http:\/\/mays.tamu.edu\/news\/2011\/11\/09\/the-small-ball-of-buc-ees-success\/<br \/>\n(2)\u00a0http:\/\/www.terrelltribune.com\/article_3b1642f0-16dd-11e5-83d8-979b504126c8.html<br \/>\n(3)\u00a0(<a href=\"http:\/\/www.wsj.com\/articles\/SB10000872396390444914904577623862863808508\">http:\/\/www.wsj.com\/articles\/SB10000872396390444914904577623862863808508<\/a>)<br \/>\n(4)\u00a0http:\/\/mays.tamu.edu\/news\/2010\/03\/12\/competitive-advantage-clean-restrooms-beaver-nuggets-and-friendly-service\/<br \/>\n(5)\u00a0(<a href=\"http:\/\/www.expressnews.com\/business\/local\/article\/Buc-ee-s-could-beat-boycott-5308680.php\">http:\/\/www.expressnews.com\/business\/local\/article\/Buc-ee-s-could-beat-boycott-5308680.php<\/a>)<br \/>\n(6)\u00a0http:\/\/www.texasmonthly.com\/travel\/holy-crap\/<br \/>\n(7) \u00a0http:\/\/www.expressnews.com\/business\/local\/article\/Buc-ee-s-could-beat-boycott-5308680.php<br \/>\n(8)\u00a0http:\/\/bauerticker.uh.edu\/alumni\/buc-ees-founder-talks-holy-grail-of-entrepreneurship\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How a gas station developed a cult following by cleaning its bathrooms<\/p>\n","protected":false},"author":855,"featured_media":4144,"comment_status":"open","ping_status":"closed","template":"","categories":[737,734,736,735,738],"class_list":["post-4138","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-bathrooms","category-buc-ees","category-convenience-stores","category-gas-stations","category-texas"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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