Saturday, Jan. 31 marked the end of an era in Castro Valley as the community gathered to say goodbye to Knudsen’s Ice Creamery. Opened in 2004 by Dave and Kathy Knudsen, the casual diner quickly became the go-to place for handmade confections, ice cream and good ol’ fashioned American food.
Ten years ago, ownership passed to granddaughter Shay. After such a successful run, she admits it was hard to say goodbye. “It was time. Time for me to do something different,“ she said. “My family has been here a long time, and now it’s time to start a new chapter.”
Knudsen’s was the culmination of a dream for Dave and Kathy, who started small by buying a little ice cream store in San Francisco in 1968, a year after they were married. In 1973 they took on candy making, purchasing The Candy Factory in Hayward’s Southland Mall and growing it into a massive business, which they then sold in 2001.
In 2004 they bought the “Ice Creamery” in Castro Valley and remodeled it, creating a family-friendly environment where they could share their love of candy making and handmade ice cream with the public.
Unfortunately the business never fully recovered financially from the loss of revenue due to the pandemic. In 2024, when new property management team Main Street Property Management remodeled, cutting the ice creamery in half, Shay thought it might solve their problems. But additional costs from the improvements and increased rent only made things worse, not to mention the unappealing nature of the smaller space.
“It’s been a struggle,” she admits. “I will definitely never do commercial construction again.”
David Newman
David Newman
In a post on Facebook, she thanked the community for their support:
“After more than 20 wonderful years, it’s time for us to say goodbye. We are hopeful that a new operator will step in and continue serving this amazing community we’ve been so grateful to be part of…Thank you for the love, support and memories you’ve shared with us over the years. You have truly meant the world to us. You are all deeply loved and will be greatly missed.”
The week leading up to the final day saw long lines of loyal locals stopping by for one last scoop. Mitchell Sill, Castro Valley resident for over 35 years, was there for his favorite banana special. “This place will be greatly missed. It was a place where families could gather, tell stories and enjoy good food and ice cream.”
Matthew Johnson stopped by to pick up some ice cream and candy for his girlfriend Maya, who grew up in Castro Valley and is now a student at Cal Poly. He posed for a photo with one of the longtime servers, Maria, who has been working there since opening day. “Maria is Maya’s favorite person here; she’s known her forever. I’m excited to share this picture of her working her last shift, I know Maya’s going to love it.”
Audriana Soltes was there with her mom, Joanne, enjoying one last sundae. “We wouldn’t have missed this for anything,“ said Joanne. “We’ve been coming here for the past 10 years, since Audriana was born. The staff is amazing and everyone is so kind.”
Shane and Erin Rogge, Castro Valley residents for the past 22 years, shared a booth with their daughter, Gabi. “This is family, this is community, this is history and this is memories,” said Shane. “Everybody comes here for everything,” said Gabi with a smile.
“We’re happy to send it off,” said Erin.
Sue and Harvey Chin started coming to Knudsen’s when their daughter’s family moved to Castro Valley 20 years ago. Said Sue, “We have many fond memories of spending time with our grandkids here, from when they were toddlers to now as teenagers and adults. I always enjoyed giving them quarters to see what they would get from the toy vending machines. We also enjoyed seeing them on the coin operated children’s rides.”
Shay’s father, Tod Knudsen, flew out from Colorado to support his daughter during this emotional time. “What can I say,” he said, choking up. “Mom and Dad worked really hard to get this place started, and Shay has also worked hard to keep the family business going. I remember opening day: The weather was hot and there was the Mother’s Day Parade outside. We were not prepared for all the customers!”
As tears were shed at this bittersweet affair, many of the servers reflected on their time there. This was Kaylei’s first job. Then 16, she is now 28. “We’re all family. It’s just been so wonderful. I have loved working here and I am so grateful that I’ve been given this opportunity.”
Shay is hopeful that the new owners of the property will continue the ice creamery format.
