After scooping up two Aldi sites, Latino entrepreneur has big dreams for local grocery chain

When Daniel Hernandez opened his first Colonial Market in 2019, he saw a need for a grocery that could serve the Latino community, and also draw neighbors with grab-and-go food.

Colonial Market at 2750 Nicollet Ave. allowed him an introduction into the community he’d been a part of since he was a teenager freshly arrived from Acapulco, Mexico. The store has a butcher counter, fresh produce, restaurant and an ice cream counter inside. He calls the concept a “one-stop shop.”

His success there allowed him to expand his portfolio and acquire La Casa Market at 3733 Nicollet Ave. S. two years later.

But then business became personal.

Hernandez said it hurt him seeing “big corporations” fleeing Black and Brown neighborhoods. He saw Aldi leave north Minneapolis and Walmart leaving Brooklyn Center.

On Tuesday Hernandez announced the opening of two additional Colonial Markets in former Aldi stores ; one in north Minneapolis, which will open in December, the other in the Hi-Lake Shopping Center, set to open in the fall.

And he said the Colonial Market Group, of which he’s majority owner, plans to have seven grocery stores in operation in the next five years around the Twin Cities.

“Big corporations only see the money side. These companies don’t have feelings, they are like ‘money, here we can make more, if we remove it from here, put it over here, we’re gonna make more.’ I live here. I’m the owner of this location. You’re talking to me,” Hernandez said.

The rapid expansion has also led to tough decisions involving his current businesses. He said he will close his Nicollet Avenue Colonial Market in December and finalize the sale of La Casa Market nearby.

“The owner of the building has a different purpose so we’re closing this one [Nicollet Ave. Colonial Market], but we’re only moving 1.5 miles away,” Hernandez said.

By the end of the year, Hernandez said he will only own the Colonial Market in north Minneapolis and the one at Hi-Lake Shopping Center.

He explained during Tuesday’s announcement the goal or “mission” for the new Colonial Market ownership group is to have more a uniform store concept. His neighborhood stores will be 15,000 to 20,000 square feet, about half the size of the average chain supermarket.

Having similar spaces and sizes will help with layout design and staff training, which Hernandez admits can be a lot of work.

Local real estate agent Pahola Clysdale attended Tuesday’s Colonial Market announcement in north Minneapolis.

She said she’s known Hernandez for 20 years and it’s brought her “immense” joy seeing someone she considers a brother succeed.

“He comes from simple roots and no matter how big he gets he always keeps his feet firmly planted on the ground,” Clysdale said.

According to her, Hernandez isn’t just about giving back to the community, but he’s also taken an active role in uplifting other members of the community and helping others become leaders.

He’s partnered with her and other Latino business leaders around the Twin Cities to host networking events.

“Why be competitive if life isn’t like that? The sun comes out for everybody,” she said.

So far all Colonial Markets are located in Minneapolis, and all planned stores through 2024 will be in the city, but Hernandez said within the next few years he’ll be opening up some locations in St. Paul and Burnsville.

Hernandez said the plan thus far is to continue leasing space rather than purchasing the buildings.

“I wish, but it’s really hard for people to sell their assets,” Hernandez said.

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