\u201cI believe in the concept of a worker-owned cooperative,\u201d Hobbes said. \u201cIt\u2019s the only form that allows the workers to own the business, make all of the decisions, including their working hours and their wages, and allows them to also receive from the profits.\u201d<\/p>\n
![\"Peanuts](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/richard-hobbs-2-1024x556.jpg\")
Peanuts Deluxe Cafe owner Richard Hobbs, an immigration attorney, bought the cafe next to San Jose State University, renovated the facility and turned it into a worker-owned cooperative. Photo by Robert Eliason.<\/p>\n
The building that houses Peanuts dates to 1928 and became Mary\u2019s Sandwich Shop in 1963, a place where students could buy seven sandwiches for a dollar. Rebranded as Peanuts Deluxe Cafe in 1964, it has served as a central hangout for generations of SJSU students.<\/p>\n
That tradition continues today, with a menu packed with dishes that offer great flavors and large portions at prices the average starving collegiate can afford.<\/p>\n
The menu has all the breakfast classics one would expect, from omelets to pancakes, including the Spartan Griddle, an egg layered between two pancakes. The menu also includes full lunch offerings, with sandwiches such as the B.L.A.T. (Bacon, Lettuce, Avocado and Tomato) and the Spartan Burger, a cheeseburger on a brioche bun.<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/spartan-griddle-1024x768.jpg\")
The Spartan Griddle is an egg sandwiched between two pancakes. Photo by Robert Eliason.<\/p>\n
Hobbs said the place was \u201con its last legs\u201d when he bought it. A walk-in refrigerator, now used for supply storage, had been broken for 10 years. The new four-part sinks the health department had been demanding since 2018 were finally installed, he said.<\/p>\n
\u201cHaving never owned a restaurant in my life, it was a tremendous challenge to refurbish and repurpose it,\u201d Hobbs said. \u201cWe brought in booths. We got new chairs, new tables, new lighting. We repainted the place in San Jose State colors. We did everything.\u201d<\/p>\n
Joining Hobbs in the renovation, four employees put in what he describes as the \u201cblood equity\u201d necessary to establish their interest in his ultimate plan of employee ownership, becoming founding members in the process.<\/p>\n
Christian Contreras, hired last October, said he wasn\u2019t sure at first about having a stake in the store, given concerns about the eatery\u2019s future.<\/p>\n
\u201cIt was very overwhelming, because we didn\u2019t know what to expect,\u201d he told San Jos\u00e9 Spotlight. \u201cI was always a shift leader or manager. But now, since I\u2019m becoming an owner, it\u2019s like a brand new door opens. Overall, it\u2019s been very interesting.\u201d<\/p>\n
His favorite lunch item on the menu is the popular hand-carved Turkey Avocado Sandwich, which includes mayonnaise and a pesto he said gives it an \u201cenormous kick.\u201d On the breakfast side, he\u2019s a fan of the enormous Pike\u2019s Peak.<\/p>\n
\u201cIt\u2019s a big portion on a big plate,\u201d Contreras said. \u201cYou get your two eggs, with hash browns or crunchy potatoes on the side with bacon or sausage. On the side, you get two pancakes, and you can add strawberries or bananas. Personally, that\u2019s my favorite out of the whole menu.\u201d<\/p>\n
The menu includes a \u201csouth of the border\u201d selection that favors Mexican standards, like Huevos Rancheros and Chilaquiles, as a nod to the background of the restaurant\u2019s primarily Latino workers. There are also Mexican-influenced offerings such as the Mexi-Cali Burger, with chorizo and avocado, and the just-introduced Street Tacos and Super Quesadilla, with a choice of meat mixed with avocado, sour cream and pico de gallo.<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/Mexican-omelet-1024x768.jpg\")
The three-egg Mexican Omelet is made with chorizo, Monterey Jack cheese and jalape\u00f1o slices, topped with pico de gallo, sour cream and avocado. Photo by Robert Eliason.<\/p>\n
The star might be the three-egg Mexican Omelet, which is made with chorizo, Monterey Jack cheese and jalape\u00f1o slices, topped with pico de gallo, sour cream and avocado slices. The presentation is eye-catching, and the flavors are indulgent.<\/p>\n
One of the biggest sellers, Contreras said, is the Breakfast Burrito, made with three scrambled eggs, a choice of meat, cheese and potatoes. A vegetarian version swaps the meat for mushrooms, bell peppers and spinach, with optional avocado.<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/Breakfast-burrito-1024x768.jpg\")
The Breakfast Burrito is one of the best sellers. It\u2019s made with three scrambled eggs, a choice of meat, cheese and potatoes. There is also a vegetarian version. Photo by Robert Eliason.<\/p>\n
That burrito is the favorite of regular customer Vickie Mueller Olvera, who describes Peanuts as a \u201cno-frills kind of place.\u201d She said she is drawn to the cafe\u2019s look and style.<\/p>\n
\u201cIt\u2019s just really good food at a reasonable price and a very good value,\u201d she told San Jos\u00e9 Spotlight. \u201cThey\u2019ve fixed it up nicely. It\u2019s more wide open, and there\u2019s more space to sit at the big tables.\u201d<\/p>\n
Having that kind of social atmosphere \u2014 one of engagement that leads to community action \u2014 is part of Hobbs\u2019 vision, which is evident in the new t-shirts he has ordered for the business, which read \u201cPeanuts Deluxe Cafe for fun and transformation.\u201d<\/p>\n
As part of the effort, for example, Taco Tuesdays includes discounted tacos to munch on while listening to talks by local leaders on issues related to the upcoming election.<\/p>\n \u201cSo we want Peanuts to be a location where people feel that they can come and relax, enjoy themselves, but also to be transformed by the engagement that we hope to continue to offer to the community,\u201d Hobbs told San Jos\u00e9 Spotlight.<\/p>\n Contact Robert Eliason at\u00a0[email\u00a0protected]<\/a>.<\/p>\n Editor\u2019s Note: The Biz Beat is a series highlighting local small businesses and restaurants in Silicon Valley. Know a business you\u2019d like to see featured? Let us know at\u00a0[email\u00a0protected]<\/a>.<\/p>\n Peanuts Deluxe Cafe<\/p>\n Located\u00a0 at 275 E. San Fernando St. in San Jose<\/p>\n (408) 998-9778<\/p>\n Hours:<\/p>\n Monday and Tuesday 8\u202fa.m. to 3 p.m. Closed Wednesdays<\/p>\n![\"In-line](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/1789923491_936_interactive-321838904008.png\")
<\/a><\/p>\n
\nThursday 8\u202fa.m. to 7\u202f p.m.
\nFriday 8\u202fa.m. to 10 p.m.
\nSaturday 8\u202fa.m.to 3 \u202fp.m.
\nSunday 8\u202fa.m. to 7\u202f p.m.<\/p>\n