WATSONVILLE — Nestled in a light-industrial district on West Lake Avenue lies Monterey Bay Caterers, a business with a small breakfast-and-lunch cafe and a bustling catering business.

The business celebrated its 35th anniversary with a small gathering Tuesday night.

“I love it,” said Ken Schwan, who owns the business with his wife Kathy. “I really enjoy what I do. I have a passion for it.”

The business was founded in 1982 by Hare, Brewer & Kelley, Inc., which was also known as Pajaro Dunes Rental Agency.

With Ken Schwan at the helm, the business was an effort by the company to expand its catering services at Pajaro Dunes resort. The company catered for such companies as the Apple computer company and Atari video games.

The business soon expanded to the current location at 152 West Lake Ave. to bring the services to the public. Schwan has owned the business since he bought it from HBK in 2001.

The cafe on West Lake Avenue serves as the public face for Monterey Bay Caterers, which boasts a bustling behind-the-scenes catering business whose clients include Driscoll’s and Granite Construction, and such nonprofits as Pajaro Valley Loaves and Fishes and Hospice of Santa Cruz County.

The cafe is perhaps best recognized by the giant, dual yellow smiley faces that festoon the walls, which started as an effort to quell graffiti. The murals have since become a draw for passersby to snap selfies, Schwan said.

In its heyday, Schwan’s business boasted a six-figure income that operated in three locations with 30 employees.

But as the 2008 recession took a bite out of corporate pocketbooks, it left in its wake smaller businesses such as MBC.

“The current business is an evolution of a smaller company now,” Schwan said.

Schwan said those employees have been with the company from one year to as long as 26 years.

The cafe is a small, cozy place with a lunch-counter ambiance and a friendly crew that seems to understand that interpersonal interaction is an essential part of an eating experience.

Because the cafe offers quick meals at reasonable prices, Schwan said he has a cadre of loyal customers from corporate CEOs to city workers to workers on their lunch break.

As the primary cook, Schwan said he arrives at 6 a.m. every day to start preparing for the day’s deli business and for the catering jobs, which he said make up the bulk of his business.

“When they hire us they know the food is going to be good, they know it’s going to be on time, they know the chafing dishes are going to be lit and that the serving utensils are going to be there,” he said. “We’re going to do what we said we would and they can feel comfortable that it is going to be taken care of.”

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