This week in Santa Cruz County business: Wonderfil’s mission to reduce single-use plastics, Tesla dealership coming to Capitola, Joby-Archer feud heats up

Each week, we’re taking a closer look at the movers and shakers, the growth of industries and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Santa Cruz-based Wonderfil aims to reduce single-use plastics one shampoo bottle at a time

Despite efforts to increase recycling in California, just 5% of colored plastic shampoo and detergent bottles are recycled annually, and single-use plastic containers continue to proliferate. Consumers are interested in using fewer single-use plastics, but efforts to make it easier to reuse and reduce plastic containers have often fallen short. Many bulk dispenser systems in grocery stores, for instance, require consumers to purchase new containers, buy certain quantities or get their container weighed in advance, and they can be a pain for many stores to keep up with. 

The team behind Santa Cruz-based Wonderfil has created a new kind of refill station that allows consumers to easily fill up the container of their choice with products like soap, shampoo and laundry detergent. They’re charged by the ounce, and it’s all done automatically. Inventory is also tracked automatically, which means store clerks don’t have to worry about checking on how full large jugs are or grapple with filling containers with soap during busy shopping times. 

The company has already installed refill stations on college campuses and five Whole Foods stores in the Bay Area. Last week, it added a refill station outside its office in the Old Wrigley Building on the Westside of Santa Cruz. People can bring their bottles, fill them up with hand soap or detergent, and easily pay by credit or debit card per ounce, just as they might pay for gas at the pump. 

Read more here.

Capitola planning commission greenlights Tesla dealership

Capitola planning commissioners have unanimously approved plans for a Tesla car dealership in King’s Plaza Shopping Center on 41st Avenue, in the former Rite Aid store. The space has been vacant since Rite Aid closed in late 2023 as part of the company’s bankruptcy case. 

The car company plans to occupy just over 21,000 square feet in the shopping center for electric vehicle sales, service and delivery. According to Tesla filings, the showroom will have two vehicles on display and another five demo vehicles will be on site. Inventory for sale won’t be stored at the property, and service work performed there will include standard servicing of Tesla vehicles, including software updates, tire replacement and minor body work. The business is expected to employ 50 people, about half of whom will be certified technicians and service support staff. Sold vehicles will be stored in an adjacent lot for customers to pick up. Tesla anticipates three to four vehicle deliveries per week to the site.

At last Thursday’s planning commission meeting, Benjamin Ow of Ow Commercial, which owns King’s Plaza, said securing a Tesla dealership was a “huge win” for the city of Capitola. 

“Market demand for anchor retail space has fallen dramatically during this time due to many factors, especially the rise of Amazon and online shopping,” said Ow, whose family has owned the plaza for 60 years. “We used to have a waiting list of retailers vying to lease space at our center, but times have changed. … Thankfully, after much searching, we found a strong, dynamic and innovative company in Tesla to transform the 50-year-old pharmacy space into a modern and vibrant Tesla dealership.”

Ow also said he’d spent the past year working with Tesla, city staff and third-party consultants to design the dealership to minimize negative impacts and maximize community benefits such as job creation and economic development.

While some residents shared support for the plans, others voiced their opposition to the proposal, citing both concerns about the dealership’s potential impact on the neighborhood and distaste for Tesla leader Elon Musk’s politics. 

Court battle between two major flying taxi rivals heats up as Archer Aviation accuses Joby Aviation of concealing ties to China

Following claims by Joby Aviation that it committed corporate espionage, electric air taxi company Archer Aviation has countersued and accused Joby of concealing ties to China and misleading U.S. regulatory authorities. 

In its latest legal salvo, filed Monday in federal court, San Jose-based Archer Aviation has accused one of its main rivals of defrauding the public and the government by sourcing critical components from China and covering it up. The 139-page countersuit comes in response to charges filed by Santa Cruz-based Joby Aviation last year alleging Archer Aviation – and a former Joby employee – stole confidential corporate information and used it to get a better deal with a real estate developer. 

The competing companies have emerged as two of the most prominent contenders in the race to be the first to launch the country’s first commercial air taxi service. Commercial air service for the electric taxis will operate similarly to Lyft or Uber, in which a consumer can use an app to hail a ride. (In fact, Joby has partnered with Uber on a joint app.)

A court hearing is set for April 14. 

Read more here. 

ICYMI: Salty Otter owner says AI logo uproar has “crushed” her lifelong dream

A local business owner has changed her restaurant’s logo after receiving what she said was a tsunami of negative backlash regarding her use of artificial intelligence to create the original logo. Critics argue she should have hired a local artist instead of resorting to the emerging technology. 

Rachael Smith, who owns The Salty Otter in downtown Santa Cruz, told Lookout that she received many negative reviews based on her logo that left her feeling defeated. She’s now switched to a basic black-and-white logo, and hopes to put the focus back on her restaurant’s food and service instead. 

Read Lily Belli’s story here.

Ch-ch-changes

• New sandwich shop moves into Almar shopping center: Sourdough & Co., a California-based fast-casual chain, is now open near the Safeway store on Mission Street on the Westside. The franchise specializes in soups, salads and sandwiches made on its signature sourdough bread.
• Planet Fitness now open in Watsonville: The newest gym in Watsonville held its grand opening late last month. Planet Fitness, one of the country’s largest fitness center chains, is located at 1702 Freedom Blvd. 
• Capitola mall bookstore closing at end of March: The Friends of the Santa Cruz Public Libraries’ bookstore inside the Capitola Mall will close March 31 after eight years in business. The bookstore has helped raise funds for projects including the new Capitola library, which opened in 2021, and the library’s recently completed solar and battery storage build.
• Local nonprofit gets over $460,000 in state funds for broadband access:  The California Public Utilities Commission has awarded the Monterey Bay Economic Partnership (MBEP) $463,644 to help establish free public broadband access sites in Monterey, San Benito and Santa Cruz counties. MBEP’s Connected Communities Hubs project will create inclusive, fully equipped internet access hubs in rural and low-income communities. Community sites such as libraries, senior centers and schools will offer reliable, free WiFi access and publicly available desktop computers preloaded with shortcuts to key tools like Department of Motor Vehicle services, job search platforms and more. 
• Santa Cruz parks and recreation employees net state awards: Four Santa Cruz Parks & Recreation staff members were recognized by the California Parks and Recreation Society’s Rise and Shine Awards. Recreation coordinators Julie Graff and Rita Douangpannha received the professional merit work honoring their contributions to the department. Recreation coordinator Nick Tanza received the rising professional award, and the city’s urban forester, Leslie Keedy, received the distinguished professional award honoring her longtime leadership and contributions. 
• Pajaro Valley Health Care District Board fills vacancy: Emily Balli was appointed as the newest member of the Pajaro Valley Health Care District governing board. She replaces Dr. Katherine Gabriel-Cox, who resigned in January. Balli, a Watsonville resident, worked for the Santa Cruz County Human Services Department for 32 years. She previously was a board member of Moreland Notre Dame School in Watsonville and currently sits on the board of the Irmandade da Santissima Trindade de Watsonville (ITSW) charity and scholarship, a Portuguese American community organization in Watsonville. 

Got hires, promotions or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

What’s new on the Lookout Job Board

• Value Added Enterprise Associate at Homeless Garden Project
• Director of Product Success (National) at Lookout Local
• Executive Editor at Lookout Santa Cruz
• Senior Visitor Service Aide at Friends of Santa Cruz State Parks
• Director of Finance at Volunteer Center of Santa Cruz County
• Locksmith FT at Coast Lock and Safe

Want more? Browse all openings on our job board. | Hiring? Post your job today!

Looking at the numbers

• 51.6%: That was the hotel occupancy rate for January in Santa Cruz County, holding steady from the previous month. That was the same rate for January 2025 as well, according to the latest numbers from Visit Santa Cruz County, the county’s tourism marketing organization. Average daily room rate increased year over year, rising to $147 in January 2026. (December’s rate was $146.) 

Save the date 

• Thursday, March 12: A grand opening and ribbon-cutting for the new RiverRow apartments at 444 Front St. in Santa Cruz will take place from 11 am to 1 p.m.
• Friday, March 13: The Capitola-Soquel Chamber of Commerce’s annual awards gala takes place from 5:30 to 9 p.m. at Chaminade Resort and Spa in Santa Cruz. Nominations are currently open for person of the year, business of the year, educator of the year, outstanding youth, and the community spirit awards. For registration details and the nomination form, click here.
• Thursday, March 17: The City of Santa Cruz business development team will hold open office hours from 9 to 11 a.m. at 1541 Pacific Ave. to meet with small business owners to discuss opportunities, permitting and financing questions, and provide additional information. Staff from the planning department will be on hand along with an advisor from the Small Business Development Center. Register here.
• Wednesday, March 18: The Santa Cruz Chamber of Commerce holds its next “business after hours” event at Dominican Hospital, 1555 Soquel Dr., Santa Cruz, from 5 to 7 p.m. Details and registration here.
• Wednesday, March 18: The Santa Cruz County Skilled Trades Job Fair takes place from 4 to 6:30 p.m. at the Grove Event Center on Beach Street in Santa Cruz. The free event connects job seekers with local employers and training providers in construction, HVAC, welding, maintenance and more. More details here.
• Thursday, March 26: Dr. Kendall Welch will hold a ribbon-cutting and open house celebration for her new naturopathic practice from 4 to 6 p.m. at 2955 Park Ave., Soquel.
• Thursday, April 16: The Santa Cruz Area Chamber of Commerce will hold its annual community recognition awards event at The Grove in Santa Cruz from 5:30 to 9 p.m. Early bird registration is available through March 15.
• Saturday, April 18: The Downtown Association of Santa Cruz will hold a teen job training from 10 a.m. to 1 p.m. to help local teens with guidance on how to land a summer job. The free event, to be held at the Santa Cruz Museum of Art & History on Front Street, includes lunch, résumé-writing tips and presentations from local employers. Register here.

• Saturday, April 25: Mission West will hold a grand opening event to celebrate its new ownership. The Westside dive bar changed hands at the start of the year. The event, scheduled for 2 to 10 p.m., includes live music, dancing and local vendors. 

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

• Pilots Association prevails on airport land use case (The Pajaronian)
• Flying taxi startup lays off most of its California staff (KTLA)
• Cat & Cloud café workers move to form a union — and they won’t need an election to do it (Lookout)

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