Estimated read time: 5-6 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
SALT LAKE CITY — When you think of Utah high-profile family businesses, one of the names that likely comes to mind is Harmon.
And while the business may have started out as a small market with fruit, veggies, dairy and poultry — over the past 79 years, it has grown into something much, much bigger.
If you've lived in Utah for almost any length of time, chances are that you've seen Bob and Randy Harmon in print ads, on television or heard them on the radio. Their friendly, fun-loving commercials have been a staple of the 14-store grocery chain's advertising campaign for years — making the brothers local icons.
Harmons has been the Wasatch Front's "neighborhood grocer" for nearly eight decades, from its humble beginnings during the Depression era to its success into the 21st century. By February 2012, Harmons will have 16 stores in its portfolio.
For us to survive, we've got to do everything differently. It takes some work to do it right, but we think it's well worth it.
–- Dean Peterson
Not bad considering that in 1932, Jake Harmon and his wife, Irene, started a small grocery store called The Market Spot. The store was located at 3300 S. Main in Salt Lake County, and the couple lived in a small apartment behind the store, according to grandson Bob Harmon — whose official title is vice president for the customer.
Soon after opening, the store was selling various grocery and sundry household items. In 1942, after a vehicle crashed into the store causing serious structural damage, the Harmons went on to open a cafe. Three years later, the cafe was sold and a new grocery store — initially dubbed The Green Store because of the sea-foam color the building was painted — opened at 4000 West and 3500 South. That site became the location of the very first Harmons Market.
The original store burned in 1971 and was replaced by a new store that became the first Harmons "supermarket." By 1998, there were eight locations.
Currently, there are 14 stores across the state with a 15th scheduled to open on Sept. 14 at the site of what was (and will remain) Emigration Market, and a 43,410-square-foot Harmons that will occupy the east side of the City Creek Center development in downtown Salt Lake City is under construction.
Today, Harmons employs 2,700 associates company-wide — all in Utah.
The chain is still a "family-owned" business, with Jake and Irene's daughter Doreen Harmon serving as chairman and principal owner, with third-generation siblings Bob, Randy and sister Jamie also heavily involved in the company. Despite being a "family" business, key leadership positions are held by non-family members, including the chief operating officer, the chief financial officer, as well as the president and chief executive officer — Dean Peterson.
Peterson joined the company 38 years ago and has held the top executive spot for the past 16 years, overseeing day-to-day operations.
He said the company strives to maintain a high level of quality in the products it sells and to be innovative in its approach on how Harmons stores look and serve its customers.
"We go around the country and we're going to Europe to find what it is that we can bring back to the consumer that will help us have an advantage," Peterson said.
Particularly, they have visited Italy and France to investigate facilities and foods to determine the best way to serve customers the best available products.
"What we're finding is that real quality is what people are inclined to enjoy," Peterson said. "People should enjoy their food and we want to help them do that."
Harmon said visiting producers' farms, mills and manufacturing plants offer a better perspective on the kinds of items that they want to sell in Harmons stores. In doing so, the company has become a supporter of "slow food."
Slow Food is an international movement founded in 1986. The movement is promoted as an alternative to fast food, and strives to preserve traditional and regional cuisine by encouraging farming of plants, seeds and livestock that are characteristic of the local ecosystem.
The movement's goals include advocating for more sustainable foods and the promotion of local small businesses to combat the increasing globalization of agricultural products.
What we're finding is that real quality is what people are inclined to enjoy. People should enjoy their food and we want to help them do that.
–- Dean Peterson
Harmon said supporting slow food and local producers would help his company provide healthier food choices for shoppers.
Over the years, the chain has grown from just a place to buy pre-packaged groceries along with some produce and meat choices to a full-service provider of numerous varieties of fresh foods, including fully prepared meals made by highly trained professionals. All 14 stores have chefs or sous chefs.
In addition, the company has added high-end features such as cooking demonstrations, full-service delicatessens and cafes with free Wi-Fi at most of its stores. The Station Park location in Farmington was the first grocery store in Davis County to have its own full-time registered dietitian onsite.
Implementing the many new features and upgrading every existing store in the past eight years has been an important part of the company's growth strategy.
Peterson said the typical new Harmons store costs between $15 million and $20 million to build, which is much higher than the industry average. A decade ago, they could build stores for about $10 million, he said.
"We put a lot of equipment in our stores because we're using a lot of fresh foods … (made) on-site and it's expensive," Peterson said.
The cost of property and construction has also pushed the price of developing new stores higher.
Despite the increased expenses, the company has been able to expand its business and generate relatively healthy numbers for its bottom line. Though he declined to offer specific figures for the privately held company, Peterson said Harmons has an annual sales volume of approximately $430 million for its total store portfolio.
And even though the company spends more than some competitors to operate its business, he said it is necessary for the company's long-term viability.
"For us to survive, we've got to do everything differently," Peterson said. "It takes some work to do it right, but we think it's well worth it."
Email:jlee@ksl.com
