Bill Harris founded Peach City in 1937. Harris received a degree in Dairy Science from Utah State University. Harris dreamed of combining his Dairy Science education and his family recipes by opening his own malt shop. He strategically selected a site along Brigham City’s bustling Main Street. With no interstate highway, nearly all traffic between Utah and Idaho passed in front of Peach City.

In 1942, the United States Army built Bushnell War Hospital on the south end of town for the soldiers wounded in World War II. Now Peach City had an entirely new clientele: hospital staff and soldiers who swapped stories while sipping a Coca-Cola or a Big Iron Port and Cherry. Because of wartime rationing, Peach City struggled to stay open. Whenever supplies ran low, Harris had to close shop until he could get his next ration.

In the 1950s, the rise of automobiles made drive-ins very popular, and Harris took advantage of this by moving Peach City from 129 South Main to its current location at 306 North Main. He updated the malt shop to a drive-in so he could accommodate cars. It was the most happening place in town where people would go to get 26 oz. malts while still sitting in their car.