My Favorite Spots to Eat in Capitola: Best Restaurants by a Local

Capitola is my happy place and also, apparently, my unofficial second residence judging by how often I'm eating here. This tiny beach town just south of Santa Cruz is packed with charm, ocean views, and dangerously good food.

I've spent a lot of time in Capitola. Like, enough that I've formed very strong opinions about the best places to eat, and I'm here to share them with you so you can skip the “where should we go?” debate and head straight to the good stuff.

This list covers everything from margaritas by the water to a pastry good enough to justify the whole drive.

These are my go-to picks for the best restaurants in Capitola, chosen by someone who has actually eaten at all of them, sometimes more than once in the same weekend.

Britannia Arms – Ocean Views + Pub Vibes + Dog-Friendly Patio

The thing I like most about the Brit is the outside patio: dogs allowed, ocean views included, casual and comfortable. It's the kind of place where you can show up alone for a pint with a book and nobody looks at you twice, which is high praise from someone who has done exactly that. The menu is solid pub food without any surprises, but honestly the food is secondary to the experience of sitting there on a sunny afternoon watching the world go by. Order something, stake out a patio spot, and settle in.

El Toro Bravo – Best Authentic Mexican Food

El Toro Bravo has been feeding Capitola since 1967, which in restaurant years is basically geological time, and the enchiladas are the reason why. This is a family-run spot with no interest in being trendy, and that's exactly its appeal. The food is the real thing, the kind of Mexican cooking that tastes like someone's grandmother is involved somewhere. It sits a little off the main esplanade strip, which means it's slightly less mobbed than the waterfront places on a busy summer weekend. Worth every step of the detour.

Gayle's Bakery & Rosticceria – Iconic Bakery Worth the Wait

Gayle's is legendary in Capitola. It's been a jewel in Capitola's tiara since 1978. Delicious baked goods, coffee bar, and a la carte meals. There is a covered patio with a fireplace where you can dine. Prepare to take a number and wait your turn, and be assured it will be worth it. Even their mayonnaise is made from scratch. Be sure to try the bear claw.

Margaritaville – Waterfront Dining + Killer Margaritas

Margaritaville is always a fun and popular spot to visit. It's one of several waterfront restaurants in Capitola. There is a main dining room inside, but I love sitting on the outdoor patio. They have a large variety of margaritas, and a good menu featuring fresh seafood and Mexican food.

Mr. Toots Coffeehouse – Great coffee, Pastries and View

Mr. Toots is one of those blink-and-you-miss-it places, hidden above Margaritaville on the second floor, like a secret clubhouse for people who like their espresso with a view. The inside feels like your artsy friend's living room: mismatched furniture, a little funky, and totally charming. If you can snag a spot on the balcony, take it. The view is the whole show.

Pizza My Heart – Pizza slices to go

Pizza My Heart is on the Esplanade, which makes it super convenient when you're heading to or from the beach. I've definitely eaten a slice here while still dripping saltwater and wearing sandy flip-flops, par for the course here. The slices are huge, cheesy, and exactly right after a day in the sun. Bonus: their merch (like the Capitola-themed tees) makes for a great cheap souvenir you'll actually wear.

Polar Bear Ice Cream – The Best Scoop for a Sunny Stroll

This place is tiny, old-school, and exactly what you want after a long afternoon in the sun. Right across from Margaritaville, it's the perfect detour when you're strolling the Esplanade and realize your beach day needs a scoop of mint chip to be complete. I usually walk past thinking “I'm fine,” then turn around a block later in a full dessert panic. Get the double. Why wouldn't you?

The Sand Bar – Budget-Friendly Breakfast + Evening Live Music

I have found The Sand Bar great for breakfast. It's more reasonably priced than the other beachfront places along the Esplanade. It also has a small balcony, so it's a treat when you luck out and get a table there. The Sand Bar also features live music most nights.

Shadowbrook – Fairytale Setting with a Cable Car Entrance

Shadowbrook is Capitola's “special occasion” restaurant, but you should go even without an occasion, for the great cocktails or just to see the grounds. It is on the hillside leading down to the Soquel Creek. You can either walk down the meandering path past a waterfall, through lushly landscaped, plumeria-scented wonderment, or you can take the fricking adorable mini cable car down.

The restaurant itself is on multiple levels. There is a Greenhouse Room, Fireside Room, Wine Cellar Room, Redwood Room, Rooftop Terrace, and the Rock Room bar. You can walk in and get drinks and/or dinner in the Rooftop Terrace or Rock Room. Otherwise, be sure to make a reservation.

I always find the food delicious, but that may be partly because I love the place so much. The setting does a lot of heavy lifting, and I am at peace with that.

Super cool tip: If you are staying in Capitola (within a 3-mile radius of the restaurant) you can call Shadowbrook and they will pick you up and drive you back after dinner in one of their complimentary old-timey taxis.

Zelda's On The Beach – Beachfront Dining + Local History

I seem to end up at Zelda's most times I visit Capitola. Good food, and that deck with umbrellas and twinkle lights (and heat lamps on cold days) just pulls me right in. Zelda's also has an indoor dining room with big windows looking out on the beach. It's a little pricey, but the view is the best in town, and judging by how often I'm there, I've decided it's worth it.

Zelda's also has a coffee bar, and they sell shirts and sweatshirts with their cute logo. Those make a great Capitola souvenir.

Zelda's posted photos of the damage from the big January 2023 storm, when waves drove broken pieces of the Capitola Wharf into the main dining room. Amazing evidence of the power of the ocean. The nearby restaurants took similar hits, but everything is back in business, and the Wharf itself was rebuilt and reopened in late 2024.

Full and Happy? Here's What to Do Next

Once you've eaten your way through Capitola (or while you're walking off that bear claw), there's still plenty to explore. My guide to things to do in Capitola covers the beach, Depot Hill, the shops, and the rebuilt wharf.

Map of Mentioned Places

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