After more than 20 years of service, Castro Valley’s Knudsen’s Ice Creamery has finally closed its doors for the last time. 

After running out of ice cream at about 3 p.m. on Jan. 31, 2026, Knudsen’s served its last scoop, and the line that once stretched down Castro Valley Boulevard gradually faded away. The shop, long woven into the fabric of the community it helped shape, had finally become another fond memory for the patrons who visited it. 

Shay Knudsen, granddaughter of Knudsen’s founders Dave and Kathy, said in an interview with Castro Valley Forum, “Our family has been part of this community for over 50 years. We, as a Family, spent many years striving to bring sweetness into everyone’s lives. We have been privileged to see families grow and to provide smiles and enjoyment for all over the years. Our hopes are to see someone else provide the same. We will leave you with this, and always: ‘Our Best is For You.’”

Dave and Kathy Knudsen, for whom the business was named, first started working in the Bay Area in 1968 when they opened an ice cream shop in San Francisco. After selling the business in 1973, they purchased The Candy Factory located in Southland Mall, and over the next 25 years up-sized to an 18,000 square foot candy factory and a 20,000 square foot distribution center, creating confections that were sold throughout the western states and even the Pacific islands. 

In 2004, however, the Knudsens decided to take over the ice creamery. Although the previous business had been closed for more than a year, they quickly began remodeling the building, reopening that spring and even securing the prime domain name icecreamery.net for their website. Knudsen’s originally made their own candy and served Bay Area legend Fenton’s ice cream, but in 2005, Dave and Kathy partnered with their son-in-law, John Cosgrove, who helped produce ice cream in-house and manage store operations until he died in 2010. 

In 2011, Knudsen’s ice cream won the red ribbon, or runners up, in the National Ice Cream Retailers of America competition for vanilla flavored ice cream. By the end of the restaurant’s 20-year operation, the ice creamery featured more than 40 different flavors, along with a rotating “Flavor of the Month” and other popular Fenton’s inspired sundaes including the popular “Black and Tan” and my personal favorite, “Coffee Cookie Dream” which featured coffee ice cream with chunks of Oreo and cookie dough, topped with marshmallow sauce and whipped cream, nuts and a cherry. 

In 2016, leadership passed to Shay Knudsen, who became the owner-operator until the store’s official closure.

 The restaurant also served other desserts, including its famous “Mud Pie,” made of crushed cookies, coffee ice cream, and decadent fudge, as well as caramel apples, affogatos, and Italian sodas.

Following a trend of third-spaces slowly declining, Knudsen’s closure marks the end of a beloved spot where many Bay Area families have gone to eat, celebrate sporting events, holidays, and much more. 

Misti Short, president of the Rotary Club of Castro Valley, noted, “From the Rotary Club perspective, Knudsen’s served as an occasional gathering place and a welcoming setting for connection. It was sometimes used for informal evening mixers and was also a comfortable place to meet over lunch to interview and get to know prospective members.” She explained that Knudsen’s also served as a sort of local bulletin board, stating, “Rotary flyers were often displayed near the entrance, or on the TV monitor reflecting Knudsen’s long-standing support of community organizations and local causes. It was a place where relationships were built naturally.”

The Ice Creamery has always been a great place for families, especially with young children, featuring live entertainment acts, face painting, and even visits from Santa around Christmas. My personal favorite, however, was the old-fashioned sports card vending machines, which, after inserting your quarters into a slot, you’d push in the metal handle, and with an immensely satisfying mechanical clunk, out popped your new assortment of baseball, basketball, or football cards. 

Demitrius Sutherlin, a Modesto resident, fondly remembers visiting Knudsen’s whenever he made his way up to the Bay Area. “My favorite memory of the creamery would probably be walking in and watching the Rowell Ranch Rodeo Parade. I remember loving the tuna melt and mint ice cream.” 

Dan Gulart, a resident of Castro Valley, also expressed his dismay at the departure of the storied business. “I liked their chocolate and caramel sundae, but what was really special was that it was a place to meet people. You can sit down and say ‘How’s the family doing?’ It was about bonding with people.” 

What comes next for the now-vacant storefront remains uncertain, but for generations of patrons, Knudsen’s Ice Creamery leaves behind memories that won’t soon fade.