Kelly and Mark Sanchez worked and studied in France and Italy perfecting their traditional pastry and bread making skills. In 1981 they established their first small bakery in the Courtyard Commons in the heart of Santa Cruz. Every morning at 3 a.m. they could be found rolling out buttery croissants and pulling hot bread from the oven. The hands-on European tradition of artisan baking attracted lines of patrons who quickly embraced the morning ritual of fines pastries and coffees at Kelly's. After opening a second Kelly's in Aptos, California. And after surviving the 1989 earthquake Kelly and Mark developed a wholesale bread bakery in Watsonville.
In January 2000, Kelly and Mark purchased a thirty thousand square foot brussel sprout packing shed on the Westside of Santa Cruz. In January 2001, Kelly and Mark closed the original Santa Cruz bakery, marking an end to an era downtown, in order to prepare for the remodel and move to the new Westside location. Kelly and Mark had always held on to a dream of recreating the Courtyard Commons that existed before the 1989 earthquake.
After three years of planning and construction, they opened their new bakery, consolidating the Watsonville wholesale bakery, Aptos, and the original Santa Cruz bakery into one location. The remodel included a courtyard with small retail shops. On May 14th 2003, Kelly and Mark opened their new Westside location.