Courage is being scared to death but saddling up anyway.
John Wayne “The Duke”

FADE IN – INT. HARKINS THEATRES TEMPE – MEDIUM SHOT DAN HARKINS

Harkins moves through the theatre greeting everyone from managers to cashiers and ushers with the same sincere smile, addressing each one by name.

If Dan Harkins, owner of Harkins Theatres, was to star as himself in a movie about his life, he might be an unusual mixture of the characters Woody Allen and John Wayne might play. A strange mix, indeed. However, there is nothing “run of the mill” about this character, thankfully. He is truly the hero of his own success story.

Innovation and that certain, intangible “spark” of creativity and desire to succeed in business and life often runs in families, as exhibited in the Solheim family (see January issue.) The Harkins family is no different.

If one looked in the dictionary for the definition of an “innovator” there should be a picture of Dwight “Red” Harkins and his son, Dan. Dwight Harkins rode his Harley from Cincinnati, Ohio to Tempe, by way of Flagstaff in 1931 with dreams of being in “talking pictures” in Hollywood. However, the penniless Harkins would never make it to Hollywood. While in Tempe, he decided to pursue another dream: he would open the State Theatre in Tempe, the first Harkins Theatre. So, at the height of the depression, he achieved his dream. Though, his dream didn’t stop there …far from it, in fact. In 1940 he built the College Theatre, which is now known as “Valley Art.” His attention to detail, and desire to produce a state of the art experience for theatergoers was evident. The theatre was filled with tons of new innovations such as glow-in-the-dark carpeting, headphones for the hearing impaired (in fact, the Harkins family has always cared for the experience of every theatergoer and installed wheelchair ramps in their theatres long before they were required by law,) and electronically-controlled drinking fountains.

In 1974 son, Dan Harkins, was poised for a career in law but as it turns out fate had other plans for him. And moviegoers all over Arizona and the Southwest are thankful. Dan took over his father’s theatres after his father, Dwight “Red” Harkins passed away and carried on the family tradition of innovation and “firsts.” Even at the tender age of twenty-one, Dan had been well-trained in the business, as he worked every job in the theatre, from janitor to doorman to projectionist.

Make no mistake about it, though …the younger Harkins also inherited the issues associated with the business at that time, including the fact that the Harkins Theatres were technically bankrupt, and would be for several years. “For about an eight year period between 1974 and 1982 my accountant told me that I was the textbook definition of being bankrupt,” admits Harkins.
Dan had a decision to make – he could either close production for operating overbudget, or forge ahead with the best project he could create. He then started a three-decade journey of buying theatres and completely upgrading them to meet the high standards of the “Harkins” name. Just a few of these upgrades include 18” thick concrete blocks between theatres (most theatres simply use drywall) to sound-proof each theatre, utilizing German projectors, screens from England, and sound systems from the United States – nothing but the best available.

The improvements were not limited to the structure and equipment. He rolled out the concept of the “gourmet snack bar” in his theatres and watched the popularity take off. “I was the first one to offer White Castles in my theatres, along with many of the hot gourmet treats at the theatres. Theatre owners make their money on the concessions, not on movie tickets (the proceeds of which go to the studios.)” So Harkins’ contemporaries thought he had finally flipped his lid when he introduced the concept of the “loyalty cup” and “loyalty shirt” both of which were borne out of ideas that had been implemented for Harkins anniversaries. “Many of my ideas roll out of other ideas,” shared Harkins.  “The loyalty cups and the concept of the one dollar refill has really caught on, and does exactly what it was intended to do – it keeps moviegoers coming back to Harkins.” It turns out that the apple doesn’t fall from the tree, after all.

Let’s “cut to the chase.” Many of his hurdles were the run-of-the-mill challenges that any business faces, but there was a period of time when it was evident to him that he was not competing on level playing ground. He was the subject of “fierce and unfair competition” and he was being blocked from getting the big name films, which were instead made available to large chain theatres. He fought an uphill battle in court, which he eventually won. Perhaps the most striking thing about Dan Harkins is his fervent desire – bordering on obsession – for every Harkins visitor to have an exceptional experience. This extends from the comfort of the seats in the theatre, which were custom designed by his chiropractor wife in order to support the neck and back sufficiently, to the popcorn recipe, which eschews theatre standards in favor of healthier ingredients. “Twenty years ago my wife complained that every time she ate movie theatre popcorn it made her itch. We researched the ingredients and realized that the popcorn was popped with coconut oil, just about the worst oil for you. It was also “salted” with a cheap salt substitute that was less than healthful, and in fact, considered dangerous in some countries. This recipe is used by almost all theatre chains.  Our recipe is our own formula of canola oil and real salt, now we offer the healthiest theatre popcorn in the country” explained Harkins.

Like most successful independent business owners, Harkins isn’t above implementing a change at a moments notice, and in fact, he revels in his ability to do so. During the 1977 release of “Pumping Iron” starring Arnold Schwarzenegger (current California governor,) Harkins spotted a young man who walked right past the concessions to the theatre. He saw that the young man had a protein bar with him. Harkins jumped into his car and went to the nearest market where he purchased an armful of protein bars and brought them back to the theatre where he displayed them on the counter and they quickly sold. If it wasn’t a protein bar, it was organic cookies and fresh-baked goods, then energy drinks and bottled coffees. When customer desire for these hot items started to wane, he could just as quickly pull them off the shelves and replace them with a product that fulfilled customer needs. Harkins respects the fact that his concessions are constantly shifting and evolving, according to the tastes of moviegoers. “The movie viewer is my boss. I just take my cues from them,” explained Harkins
Also among Dan Harkins’ innovations is the “12:01” showing. He recognized a missed opportunity by not showing blockbuster movies from the moment they were released. One by one, the studios called to complain, and each time Harkins took the time to explain that he was not opening the night before a big time movie was released, rather, he was opening at 12:01 on the day it was released. “As soon as the studio executives would realize that while they slept, I was making them thousands of dollars in my theatres, they came around,” laughed Harkins.

Harkins has not only contributed to his own personal success, but with thirty-one locations – twenty-six of them in Arizona – he has contributed to the economic growth of Arizona by employing Arizonans to staff those locations. Those are impressive numbers!
Parents all over the North Valley were thankful when they discovered that the new Norterra theatre that was opening in Happy Valley sported a “Playcenter” for three- to eight-year-olds that features a professional, CPR-trained staff for childcare while mom and dad take in a movie together. The Playcenter, another Harkins innovation, is a feature of select theatres in Arizona, California, Oklahoma, Colorado, and Texas, where the demographic is right. The Playcenters are a “treat” for the children who enjoy arts and crafts, age-appropriate computer games, children’s videos, and popcorn during their stay.

Harkins is proud of the numerous awards that Harkins Theatres, he, and his father have garnered – and all of them well-deserved. And all this from a man who gets in line to see movies at his own theatres and enjoys his movies with a bottle of Perrier and a pizza.
Like “The Duke” himself, he fought a tough fight, but with the uniqueness and creativity of Allen. There are many lessons to be learned from this master of innovation, and from the creative genius behind his success. This innovator dug his heels in, addressed the inconsistencies and inequality he identified in the business, and became an example of the success that awaits us all with a little bit of ingenuity and determination.

FADE OUT

Stephanie…..BRAVO!!   Thanks. Dan