How one tax cut transformed a 120-year-old grocery business

Keeping a small business afloat is no easy feat, no matter how many years you’ve been open. The challenges are even bigger if you own an independent grocery store focusing on small communities.

Profit margins are low, transportation costs are high, and goods spoil fast. Moreover, it’s hard to compete against grocery superstores like Walmart.

Here’s how one policy helped a struggling small business thrive and gave rural communities access to healthy and affordable food.

ROOTED IN TRADITION, GROWING FOR THE FUTURE

Four generations and almost 120 years.

That’s how long the Buche family has owned and operated their independent grocery stores in South Dakota. They’ve survived countless transformations and lasted almost five times longer than the average family-owned business.

When the first Buche Foods store opened, the Ford Model T was still in development, having a telephone was a luxury, and the Wright brothers were just two years removed from the first plane flight.

Yet, after all the decades of change, Buche Foods remained strong and became an institution for South Dakota — especially for Native American communities.

Their first location was founded in the Yankton Sioux reservation, and today, 24 of their locations are in or around Native American reservations.

Buche is the only reliable and affordable source of groceries for many of these communities. Without Buche Foods, thousands would have to drive long distances and spend a lot of gas money just to get groceries.

The commitment to feed people is central to the company’s identity.

When RF Buche, who’s been in charge of the business since 2000, was a kid, he saw his dad paying for the groceries of a young mother who couldn’t afford the food in her cart. He told RF, “When you’re in this business, it’s our moral obligation to make sure no family goes hungry.”

It was this lesson that led RF to start Team Buche Cares, a 501(c)(3) nonprofit that funds “Underdog” scholarships, summer food programs, and other community support initiatives.

“Something near and dear to me is feeding people.” RF Buche told us.

And that’s precisely what Buche Foods does every day.

They operate 24 stores in some of the poorest counties in the country, employ nearly 500 people, and are committed to selling quality products at the lowest prices possible.

And thanks to the Tax Cuts and Jobs Act, Buche Food has contributed even more to this charitable mission.

TCJA: GAME-CHANGER FOR BUCHE FOODS AND UNDERSERVED COMMUNITIES

For a long time, Buche didn’t have many stores — until President Donald Trump signed the 2017 Tax Cuts and Jobs Act.

After the tax cuts were passed, they opened 17 new locations — a more than 300% growth in less than 10 years.

The tax cuts were a key factor in why Buche Foods is serving dozens of remote or rural communities overlooked by bigger grocery corporations.

How did the tax cuts help?

The 2017 tax cuts allowed Buche Foods to reinvest more money in its business and acquire the technology it needs to expand its operations across the country.

For any business, some extra money is always good news, but for Buche, it was critical.

There are fewer clients in underserved regions, making it difficult for businesses to turn over their inventory.

Buche stores need better refrigeration to increase the shelf life of products like meat and dairy. If products last longer on the shelves, they last longer in customers’ fridges.

As you can imagine, better refrigeration comes at a hefty price. But thanks to the 2017 Trump tax cuts — especially the 100% expensing provision— Buche was able to upgrade their refrigeration equipment, making it easier to serve areas that are too small or too remote for big grocery chains to reach.

Today, Buche Foods feeds over 100,000 people in 121 communities, including all nine Native American reservations in South Dakota — and the Trump tax cuts were key for this expansion.

Now Buche Foods serves thousands of people from underserved communities and gives them access to affordable and reliable food.

A LOOMING TAX GRAB ENDANGERS SMALL COMMUNITIES ACROSS SOUTH DAKOTA

If Congress doesn’t extend the 2017 Trump tax cuts, South Dakota families will pay $2,421 more in taxes; businesses would face a $1,017 tax hike, and over 2,000 jobs could be lost.

For Buche, the hike could undo the success they’ve built through the years.

Ending the TCJA would take away trillions of dollars from hardworking Americans, destroy thousands of mom-and-pop shops like Buche Foods, and hurt struggling families the most.

That’s why Americans for Prosperity is marshaling their nationwide grassroots army to push Congress to extend the 2017 Trump tax cuts to protect our prosperity.

But we need your help. Your voice is vital to protect thousands of small businesses and communities across America.

Click here to join AFP’s fight to protect prosperity and extend the 2017 Trump tax cuts.