I think that Biff's grandmother is only babysitting
While one might assume from this movie that Biff is an orphan who lives with his grandmother, there seems to be more to the boy's familial story. In the original film, the kid storms around town untouched. Mr. Strickland subtly threatens Biff at times, but never does anything about the student's behavior. The leader of the bullying group can apparently pause all activity by entering an establishment. Even Lou, who is a rough and harsh man, is afraid to kick Biff out of the café. These things suggest that the Tannens are feared by the whole community, which would not be the case if only an elderly woman and her grandson were in the picture. Since Biff is poor, his father might be a crime boss who relies on street power to control others.
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