Alright – so today we’ve got the honor of introducing you to Kalila Martinez De Aragon. We think you’ll enjoy our conversation, we’ve shared it below.
Hi Kalila, thanks for joining us today. Alright, so we’d love to hear about how you got your first client or customer. What’s the story?
When we had our first produce harvest in late 2018, we had so much coming off our urban farm, but our restaurant renovation hadn’t even broken ground yet, so the idea of using that fresh produce in the kitchen wasn’t feasible. As a worker-owned co-op, we couldn’t agree on the best way to move forward and sell that produce, and that’s when our farmer, Jonnathan, took charge. He suggested—more like decided—that we start a farmstand in our parking lot on the weekends, and he made it happen.
Our farm is at the back of our half-acre lot, and our building was in the middle of the lot, which means most people driving by miss both the building and the farm itself. But we were determined. In January 2019, we launched our first farmstand, and it was such an empowering moment. We didn’t need to apply to a farmers market or deal with the risk of being rejected because they had too many vendors. We didn’t have to pay vendor fees. We simply used our land and started selling what we had grown. It was incredibly eye-opening for us to realize that farmers have the right to sell their own produce on their own land, and that was the moment our first dollar of revenue was made.
We not only sold our farm’s produce but also decided to launch our bread and pastry items, like our sourdough loaves and muffins, which were fresh from our kitchen. Despite being in a neighborhood where most people shopped at chain grocery stores without an organic section, we saw so much support from our community. It reinforced how important food sovereignty is and how honored we are to be part of maintaining the essential role of farmers in urbanizing cities. This was our first dollar—and it wasn’t just about the sale; it was about making our vision come to life.
Great, appreciate you sharing that with us. Before we ask you to share more of your insights, can you take a moment to introduce yourself and how you got to where you are today to our readers.
At Coldwater Coffeehouse & Bakery, our team is a unique blend of individuals with diverse backgrounds and experiences. Our pastry baker is the only one with prior hospitality experience—she spent years in hotel and restaurant management before joining our team to follow her passion for baking. When the opportunity arose to join Coldwater, she jumped at the chance to combine her expertise with her love for food. Anthony, our founder, brings a background in the arts and an entrepreneurial spirit, inspired by his family’s legacy in Avondale. As a fifth-generation resident, he always felt a deep connection to this land and knew it was meant for a farm-to-table café. Jonnathan, our farmer, was studying sociology when Anthony approached him about the project. He wasn’t initially interested in cooking but was passionate about community building, so he became the farmer of the team, growing the produce that forms the backbone of our kitchen. Angels, our barista, came to us through volunteering on the farm, and with a strong passion for coffee, she soon found her place working the coffee bar, learning everything there is to know about making great coffee and drinks.
One of the main problems we solve is the need for affordable, healthy, farm-to-table food, especially in low-income neighborhoods. In a community where many people rely on chain grocery stores with limited organic options, Coldwater is offering a different kind of food experience—one that emphasizes locally sourced ingredients, healthy eating, and accessible prices. As a farm-to-table café, we use fresh produce from our own urban garden, grown right here in Avondale, as well as locally sourced ingredients from partners who share our values. We’re dedicated to providing high-quality food that’s not just delicious, but also affordable, making it possible for everyone in our community to access fresh, healthy meals.
What truly sets Coldwater apart is our worker-owned cooperative model, which is central to everything we do. This model empowers each of us to have a voice in the business and invest in our community’s growth. As worker-owners, we are invested in making sure our business succeeds not just for us, but for our neighborhood as a whole. By choosing this ownership structure, we’re able to keep profits within the community, hire locally, and ensure that the people working here have a direct stake in the business. This commitment to community wealth-building is something that’s deeply important to us, and it’s a big part of why our customers are so supportive. They know they’re not just supporting a business—they’re supporting their neighbors and contributing to the success of a model that prioritizes collective well-being over individual profit.
What we’re most proud of is the deep connection we’ve built with our community. From the beginning, Coldwater has been about more than just food—it’s about fostering a sense of belonging, sustainability, and empowerment. We’re proud of the relationships we’ve built with local farmers and producers, and we’re proud of the work we’re doing to make healthy food accessible to everyone, especially in a neighborhood that has long been underserved. We’re also incredibly proud of our team, who are passionate about their roles and dedicated to the success of the cooperative model. It’s not always an easy path, but it’s one that aligns with our values and drives us forward every day.
At Coldwater, we want potential clients, followers, and fans to know that we’re more than just a café or bakery—we’re a community hub committed to food sovereignty, sustainability, and creating a space where everyone can thrive. Whether you’re here for a cup of coffee, a fresh pastry, or a hearty meal, you’re supporting a business that’s deeply invested in the well-being of its people and its neighborhood. We invite you to be a part of this journey with us!
Can you tell us about a time you’ve had to pivot?
Over the course of three years, we experienced a significant pivot in our business, which really tested our resilience and forced us to become much more strategic in how we operated. When we started, we were six owners, each one leading a different department—bread baking, pastry baking, farming, cooking, barista work, and sustainability. We had worked together in community development before, so we were idealistic and felt confident in our ability to collaborate and bring our vision to life. But it quickly became clear that the reality of running a business was much more complex than we anticipated. Personality dynamics, differing work styles, and unmet expectations began to surface, and we found ourselves struggling to make decisions and move forward.
One of the biggest challenges we faced was that five of the six owners had no prior business ownership experience, which led to a lot of wasted time and money. Bookkeeping, budgeting, and forecasting—things that are critical to any business—were completely foreign to us. Over time, three of our original owners ended up leaving, and each time, it was a gut punch. But each time an owner left, our business became stronger.
The first pivot came when one of our owners, who had a background in sustainability, decided to leave. She had originally planned to spearhead sustainability initiatives like composting, beekeeping, and sustainable packaging, but she realized those were not things she was passionate about. She moved into marketing, and when she left, we knew marketing was something we had to take seriously. That was a turning point for us, and we started focusing on how better marketing could lead to better sales. We’re still working toward great marketing, but we’ve made huge strides in understanding its importance.
The second pivot happened when our barista, who had been an integral part of our team, left. This was a particularly tough moment for us because you can’t run a coffee shop without a barista! At that time, Angels, who had been volunteering on the farm, had always expressed an interest in working at the coffee bar. She stepped up and took on the role with enthusiasm, and she has been an absolute gold mine ever since. That shift was a reminder that, even in tough situations, you can find strength within your own team.
The third pivot occurred when our bread baker decided to leave. Bread was a huge part of our menu, from French toast in the morning to sandwiches at lunch, and his departure was a significant challenge. But the conversations leading up to his departure helped us become more serious as business owners, making difficult decisions and understanding that sometimes you have to make tough calls for the greater good of the business. This pivot led us to look at who we still had on our team, and we realized we had someone with extra time who could learn how to bake bread. We doubled down on training and became more savvy with each step.
These pivots—each time we lost an owner—taught us that our team doesn’t have to be big to be strong. We’ve learned that growth doesn’t always mean expansion; sometimes, it’s about strengthening the core. Our goal, as a worker-owned co-op, is to continue offering ownership to new employees who prove themselves. As we grow, we need to maintain our strength by having a clear vision, a strong training program, and a team that’s invested in the success of the business.
Can you open up about how you funded your business?
How we were funded isn’t a very complex story, but it is incredibly meaningful. The money that seeded Coldwater actually came from an investment our founder, Anthony, made using funds inherited from his grandfather, one of the biggest entrepreneurial influences in his family. This investment gave Anthony the confidence to even consider starting a business in the first place. It wasn’t just about money—it was about honoring his family’s legacy and investing in his community, in a way that felt true to his roots in Avondale.
However, in connection with funding, I do want to share our experience about the difficulties we faced when it came to securing more traditional funding for Coldwater Coffeehouse & Bakery because it’s something we believe other non-traditional business models need to be ready to address. As more people look toward alternative ownership models, like worker cooperatives, it’s crucial that banks and financial institutions recognize and are prepared to fund these types of businesses. Our journey with traditional financial institutions was incredibly challenging, and we feel it’s important to share this to encourage others in similar situations.
In late 2017 and early 2018, as our farm was ready to harvest but our building renovation hadn’t even begun, we reached out to banks, credit unions, CDFIs, and even applied for grants. Unfortunately, we were turned down every single time. The reason? The very foundation of our business model—we are a worker-owned cooperative, meaning every owner shares equal ownership. Traditional lenders typically want one majority shareholder who can be held responsible in the event of a default, and since we didn’t have that, we were immediately disqualified from consideration for loans.
Aside from that, as a new business with little credit history, opportunities for funding were already scarce, but the fact that we were worker-owned kept us from even being considered. So, instead of relying on traditional financial institutions, Anthony made the decision to invest in his own neighborhood rather than the stock market. He took the money he would have invested elsewhere and seeded Coldwater Coffeehouse & Bakery with it. This investment from the founder was the foundation that allowed us to bring our dream to life and continue growing.
This experience has really highlighted how traditional financial models fail to support non-traditional business models like ours. We believe it’s crucial to continue pushing for funding opportunities for worker-owned businesses because they not only create jobs but also build community wealth, and that’s something financial institutions need to recognize and support.
Contact Info:
- Website: https://www.coldwater.coop
- Instagram: @thecoldwater
- Facebook: @thecoldwater
- Yelp: https://www.yelp.com/biz/coldwater-coffeehouse-and-bakery-avondale
Image Credits
Our owners took these photos