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This guy owns a convenience store and it made $275 million last year. His name is Beaver, and I'm going to tell you exactly how he did it. Plus, I'll give you a bunch of lessons that you can use in your business right now to get so good that your competitors literally fade into irrelevance. Do this right and your business could break through to a whole new level. That's coming up in just a sec. Welcome to the podcast. My name's John Davids, but you can call me jd. I'm the CEO of influicity, and on this show I like to share the of some of my favorite businesses and the people behind them. And here's the good news. It's 100% free. You literally couldn't pay me for this podcast if you tried. But if you wanna support me in some small way, you can do one thing. Leave me a review on Apple or Spotify or wherever you listen. I know it sounds like nothing and why take the time to do it? But honestly, if just five people leave a review on this podcast this week and it'll make a huge difference. And even though many, many thousands of you will hear this episode, like five people leaving a review, it's actually a lot. So do me a solid. Love you guys. Let's get to the show. You're listening to Making it with John Davids. So let's rewind back to the year 1982. Beaver just graduated college. And by the way, Beaver's real name is Arch Alpin ii, but he goes by Beaver, so that's what I'm going to call him. Anyways, Beaver's working at his dad's construction company, but he's itching to build something for himself. He's got that entrepreneur juice. And he's driving to work one day and that's when he notices something kind of weird. The convenience stores in his little town are no good. They actually kind of suck. They're terrible. They got filthy restrooms, crummy food, shabby service. And even then, these convenience stores are. Or printing cash seems like kind of a good business. And that's when little Beaver gets a big idea. What if I could just build a better convenience store? So he goes to the bank, gets a loan, he buys a piece of land, and he builds a small shop. Don't forget, he comes from a construction company family, so probably had a fast track to do that. He calls this new store Buc Ees. And he's about to get to work. So Beaver's Store is doing okay. He just needs a little more brain power. And that's when he teams up with a nice another young hustler by the name of Don Wasick. And Don's been working in the gas station game car washes for years. So these two become the official co founders of Buc EE's. So the guys open store number two, then three, then four. And within a couple decades, they've got a nice little chain of shops around Texas. And then Beaver's phone rings. There's this piece of land for sale nearby. It's just off the highway and it's huge. Does he want to put a buc EE's there? Now this is kind of nuts because this BUC EE's would need to be the size of a Walmart. Way, way bigger than anything they've done up to this point. But Beaver's game, he says yes. And Buc EE's is about to blow up. So fast forward now to 2002. Beaver and dawn opened the first Buc ee's Megastore. And right away it's a hit. It's got 50 plus gas pumps compared to the usual 10 that you'd find in a normal rest stop. It's got these huge washrooms that are cleaned 24, 7. It's got brisket, fudge, an entire wall of branded merch. If seven, eleven and Disneyland had a love child, it would look a lot like this place. In year one, that store clears $10 million in revenue. So they keep opening more locations, each time just a little bigger than the last. Today there are 54 spots with more on the way. Buc EE's takes this mundane business and just makes it delightful. Highway rest stops aren't supposed to be fun. They're just supposed to get the job done. But Beaver and Don go overboard turning the rest stop into a destination. It's part of the road trip that everyone loves. And it comes down to a simple business Upgrade the blah. Take something that people don't really care for and just make it the highlight. It works for so many businesses and it works for BUC EE's. That's how you you make $275 million with a convenience store. This episode is brought to you by my AI Growth Cheat Sheet, available now at johndavids.com AI if you're a business owner and you're wondering how to use AI to actually grow your business, this is the answer. It's a fully custom AI growth cheat sheet that'll give you the tools you need to grow your Business Today available right now@johndavids.com AI just answer a few questions, wait a few seconds, and you'll have your list of tools and it's free. Get it right now@johndavids.com AI so, guys, I shared this story with Y' all on YouTube, Instagram, TikTok, LinkedIn, Facebook. 27 million people saw this story and it was also ripped off by a ton of others. So if you see a story about BUC EE's anywhere on the Internet today, chances are literally, it was someone taking my story, throwing it into ChatGPT, changing a few things, and throwing it up on the Internet. It's okay. I don't care. I'm good with it. I love building entrepreneurship stories. I love capitalism. So the more of this out there, the better. And I gotta be honest, every version of the story did well. So I want to say you're welcome to BUC EE's for the billion plus impressions that my story got. And hey, guys, that's what happens when you build a brand people love. You'll get a ton of free press. So there's a bunch of stuff I want to get into deeper right now. And let's start with the thing Buc Ees does so so well. I'll call this deleting the highest point of friction. Now, I want you to think about the purpose of a roadside rest stop like BUC EE's. Let's unbundle this whole business. So when you stop at the side of the road, you can get gas, you can get food, you can grab a sweatshirt or a toothbrush, you can get medicine. If you're not feeling well on the road, maybe you grab a coffee. All these are things that you might get on your road trip when you stop at a rest stop at the side of the highway, but something you'll 100% need on the road trip everyone will need. It is a restroom, obviously. And it's really kind of an unreliable experience for drivers. Sometimes it's an unpleasant one because you don't know what you're going to get given. Every rest stop is a little bit different. Sometimes you get lucky. The washrooms are clean. That's kind of cool. But even then, there might only be a few stalls, so you wind up waiting in line. And then once you get into the washroom, maybe there's water all over the sink or the toilets aren't flush. There's pee everywhere, toilet paper on the ground, the door doesn't lock. That little separating wall between your stalls from the next Guy is super short and thin. You don't know. And on a road trip, when you gotta go, you gotta go. I was actually on a road trip a few weeks ago with my wife and my two baby girls. And we turned off the road and saw a washroom sign. And it turns out those washrooms were basically porta potties in the forest. We got back in the car and waited till the next exit. But again, you just don't know. This is the reality for anybody on a road trip. And that is exactly where BUC EE's puts their focus. They take the thing everyone dreads and they make it the part you'll remember most, the part you'll actually tell your friends about. Their washrooms are huge. They got dozens of stalls, always spotless, well lit, smelling fresh, fully stocked. There are literally attendants on duty 24 7, whose only job it is to make sure this place stays immaculate. You walk out thinking, I can't believe that was a public restroom next to a gas station at the side of the highway. And that's the lesson. Find the highest point of friction in your business and delete it. And I want to say that again. I'm talking about the highest point of friction, because there's a lot of other stuff that you could focus on. Buc EE's could put all their attention into offering more candy than the other highway rest stops. But that's not the highest point of friction. Because most people aren't driving down the freeway praying they'll find a better candy shop. They're praying that they'll find a clean place to do their business when they stop next. Because when you gotta go, you gotta go. So it's not about finding just any point of friction. It's about finding the highest point of friction for your customer. And you see this all over the place. Let me give you a few famous examples that have literally made billion dollar businesses. So back in the 1990s, airlines are all starting to charge a fee to change your flight. You want to change your flight, you gotta pay extra. And one airline, Southwest, doesn't do that. Instead, they lean into the fact that you can change your flight absolutely free. Only at Southwest, that one move helps to transform them from a small regional carrier into one of the biggest airlines in the US Paying a fee to change your flight at that point was the highest point of friction. Southwest deletes it and wins. Go back to the 1980s and 90s. Look at Domino's Pizza. Their insight is that people aren't complaining about the quality of the food it's the wait times. So they introduce 30 minutes or it's free again. The highest point of friction deleted. One of the best examples of the last 20 years, of course, is Amazon. Back in 2005, they realized that the highest point of friction with buying stuff online is paying for shipping. People don't want to pay extra for shipping. So Amazon deletes that friction with Prime. And Amazon actually takes a step even further. They don't just delete the friction at a cost to them. They do it at a profit. They still charge you for delivery. They just do it up front. That's the Amazon prime fee that you pay every year. And then they use that cash to subsidize your shipping costs throughout the year. So in that case, Amazon is deleting the highest point of friction when you would naturally feel it, and they're just moving it somewhere else. They're repackaging it as a benefit. Amazon Prime. And they charge you for it at a different time. It's so good. Gives me the chills. All right, the lesson, find the highest point of friction and delete it. You'll be amazed how good that is for your business. All right, let's move on here. Let's just say the restrooms are the bait. They bring customers in the door, but no one's paying to use those restrooms. So how does this place actually make money? Show me the money stack. Well, step one is the fuel. When you stop at the side of the highway, you're almost certainly going to fill up your tank. And Buc EE's builds these locations with dozens of pumps, usually 50 or more. So they can handle an enormous volume of cars at any one time. They also don't let trucks into their lots. Cars only, which reduces wait times. Now, gas is typically a low margin product, so they're not making a killing on this stuff. But it's an important part of the money stack. It keeps people on the property for longer and it covers a core need for travelers. So you got the toilet bringing you in. Check. Then you can fill up your tank. Check, check. But to really see where this company makes money, you gotta walk inside the store. That's where the money stack really starts to build. Now, it begins with the private label food. So Buc EE's runs multiple fresh counters inside each store. Brisket sandwiches, fudge jerky, pastries, and almost all of it is under their own brand. Private label means they capture more of the margin compared to selling national brands. So industry averages put national brand convenience store products around 32% gross margin. While private label can be closer to 40%. That goes straight to the bottom line. It's also exclusive. So if someone develops a taste for beaver Nuggets or Buc EE's Jerky, they can't get it anywhere else. That exclusivity increases the likelihood of repeat visits. And these food counters are designed for speed. The stores are big enough to handle hundreds of customers at a time without anyone feeling cramped. Staff are constantly preparing fresh batches, and displays are stacked high. And that means most people aren't leaving empty handed. And the money stack continues. Let's talk merch. This is where Buc EE's turns a convenience store into a real destination. The beaver logo appears on shirts, hats, mugs, blankets, toys, and home goods. These items carry some of the highest margins in the store, often 50% or more. And every piece of merch sold is also a piece of marketing. Because when someone wears a Buc EE's hoodie back home, they're advertising the brand in places where there might not even be a single location. You're a walking billboard. What's important is that each layer of the stack builds on the one before it. The bathrooms draw people in. The fuel keeps them there longer. The food encourages them to spend. The merch pushes the average transaction even higher while sending the brand out into the world. None of these layers work well in isolation. It's the sequence and the scale that makes it powerful. So A typical Buc EE's can see thousands of customers in a single day. And when that kind of volume is paired with a thoughtful product mix, the numbers add up quick. Now, it's a private company, so I don't have any insider information, but back of the napkin math, I'd say fuel probably makes up the majority of revenue on paper, probably like 60%. And then the in house sales bring in most of the profit. And that's what a good money stack looks like. And by the way, just pause for a second, a reality check here. When I say all this now, it sounds like I'm describing a masterpiece, but it definitely didn't start that way. Don't get fueled into just looking at the highlight reel, the finished product. You also have to look at the blooper reel, because that's where businesses are really built. A whole lot of bloopers. And occasionally you stumble on some success. And when you do, run with it and scale as fast as you can. Mm, I'm hungry. You guys hungry? I could go over some fried chicken right now from Jollibee. And no, this is not a commercial for Jollibee. This is a commercial for influence. That's my marketing agency. And Jollibee is one of our amazing clients. You can see how we help drive more foot traffic to their restaurants across America. @influicity.com Check out the case study. And hey, while you're there, check out all the other case studies from the amazing clients we work with. Influencer marketing, podcasts, social media content, AI and so much more. And if you want to work with us, just hit the let's talk button over at the top of the website. That's influicity.com and I'll see you there. So, guys, there's something I noticed right away when I posted this story across my Instagram, TikTok, Facebook, LinkedIn, YouTube, everywhere. And that was just how much people love this brand. I mean, it's crazy. My Facebook post alone was read by like 14 million people in a week, and then probably 30 or 40 million people across all the platforms, and then hundreds of millions of people when the story was ripped off and shared by others. And people have very strong feelings towards this brand. I'd say Buc EE's is one of the most loved brands in America. And I've seen many people wear the merch like it's a sports team. They take selfies in the bathrooms. They plan entire trips around a stop at BUC EE's. But here's the thing. Brands that inspire that level of love almost always attract an equal level of haters. The same qualities that make you a cult favorite for some will make you unbearable to others. So get this. There's a story. Just this year, in 2025, BUC EE's announces plans for a massive new location in Palmer Lake, Colorado. It's the full BUC EE's package. Dozens of gas pumps, a store the size of a football field, fresh brisket counters, fudge stations, shelves stacked with the beaver nuggets, and of course, the spotless restrooms. And for Buc EE's fans, it's a dream come true. But for many locals in Palmer Lake, Colorado, it is a nightmare. This is a small town. People move here for peace and quiet. The idea of thousands of travelers a day pouring off the highway into their community feels like an invasion. So concerns pop up about traffic congestion, environmental impact, and how this giant travel center might change the town's character. The backlash is immediate, and it's intense. There are protests. There are lawsuits, leaked text, even vandalism. And suddenly, Buc EE's finds itself in the middle of a fight it didn't ask for, but it's gotta deal with. And this wasn't even the first time Bucky's expansion got a huge public backlash. Back in 2016, they pulled back from a highly anticipated project in Baton Rouge, Louisiana. This is supposed to be their first big leap outside Texas. But after running the numbers and looking at the market, they conclude that the critical mass just isn't there. And they cancel the project before even breaking ground. So what is going on here? How can a brand that wins cleanest restrooms in America and has millions of devoted fans have this kind of pushback? The answer is simple, guys. The most loved brands are often the most hated because they are polarizing. And in business, that's not a bug, it's a feature. You see, when you stand for something, by definition, you stand against something else. So you attract people who love you and you repel people who don't love you. And the stronger your brand identity, the sharper that divide. If nobody dislikes what you're doing, you're probably not doing anything that matters very much at all. Buc EE's leans into this reality. They know their stores are big. It's crazy. They know these places are ridiculous. They know that they're not for everyone. And they're fine with that because the people who are for them are fiercely loyal. This is a strategy you see over and over again with the most loved brands on the planet. I'll give you some quickies. Crocs comes out in 2002. It's like a quirky boating shoe. It's lightweight, it's waterproof, and it is very weird looking. Now, most people would say this is one ugly shoe. And a lot of other people love it. They wear Crocs all the time, probably even when they shouldn't be wearing Crocs. And the brand leans into this with wild colors and collabs, turning polarization into a billion doll or cult following. I'll give you another one. In N Out Burger. They've got this very small menu of burgers and fries. They keep quality super high, and their customers are obsessed. Now, to outsiders, it's just overhyped fast food. But because In N out keeps a really small footprint. California, Nevada, Arizona, a few other places, they get so much hype among their core customers. They don't chase universal appeal. They own their niche and they let the legend grow. Here's one more. And this one is so distinctive that the brand is actually like a satire of itself. I'm talking about goop. So Goop starts as Gwyneth Paltrow's wellness newsletter and becomes this luxury lifestyle brand selling bougie products with insane price tags and tons of controversy. There's the candle, which is called this Smells Like My Vagina Candle. That's the actual name. It sells for $75 on the website. There's a psychic vampire repellent which retails for 90 bucks. It's exactly what it sounds like, I guess. Look, this stuff is crazy, and lots of people think Goop is a joke, but a lot of other people shop at Goop, so I guess something's working. So how do you do this? Well, I cover a lot of it in my book, Marketing Superpowers. If you're watching the video right there, grab your copy@marketingsuperpowersbook.com and specifically look at the movement formula. Unifying belief times faith equals action. Now grab the book. You can go a lot deeper into the movement formula and how to use it to build a brand so good that getting customers feels like magic. But for now, I just want you to think about being positively polarizing, and that comes from just being yourself. Quirks and all. Bucky's locations are too big. They're unnecessarily big. Their bathrooms are crazy clean. Unnecessarily clean. The food, the merch, it's all over the top. But it's buggies. That's who they are, and people love it. That's the secret. It's not actually much of a secret. The most loved brands are also the most hated brands. They are the most polarizing, and that's exactly what makes them powerful. And that's the story of BUC EE's, the crazy $275 million roadside rest stop. My name is John Davids. Thanks to my amazing team here at Influicity for producing this podcast. Get my best stuff to your inbox@johndavids.com this episode is brought to you by my AI Growth Cheat Sheet. Available now at johndavids.com AI if you're a business owner and you're wondering how to use AI to actually grow your business, this is the answer. It's a fully custom AI Growth cheat sheet that'll give you the tools you need to grow your business today. Available right now at johndavids.com AI just answer a few questions, wait a few seconds, and you'll have your list of tools, and it's free. Get it right now at johndavids.com AI.
