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.

Whether you want to sip margaritas by the water, find the perfect breakfast spot after a beach walk, or just eat a pastry so good you consider moving here for it, this list has you covered.

These are my go-to picks for the best restaurants in Capitola, chosen by someone who’s actually eaten at all of them (sometimes multiple times in one weekend, no judgment). Let’s get into it.

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

Britannia Arms is a British Pub with a full bar and a full menu. The thing I like most about “The Brit” is sitting on the outside patio (where dogs are allowed) with a great ocean and people-watching view!

El Toro Bravo – Best Authentic Mexican Food

This family-run restaurant has had amazing, authentic, award-winning Mexican food since 1967! The enchiladas are especially good! Don’t miss this place on your Capitola visit!

English Ales Brewery – Cozy Pub + Mug Club Quirkiness

This cute little pub in the heart of Capitola Village opened in 2020. They serve locally brewed beer plus pub food, and they have indoor and outdoor seating A fun feature is their “Mug Club”. Customers can buy their own mug which they reuse each time they visit. The mugs hang from the ceiling awaiting their owners!

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

Gayles is legendary in Capitola! It’s been a jewel in Capitola’s tiara since 1978. Delicious baked goods, coffee bar, and ala carte meals. There is a covered patio with a fireplace in which you can dine. Prepare to take a number and wait your turn, and be assured it will be worth the wait! Even their mayonnaise is made from scratch! Be sure to try Gayles’ 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, tucked 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. But if you’re lucky enough to snag a spot on the balcony? That’s where the magic is!

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 hit-the-spot perfect 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 sun-drenched afternoon. 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. You won’t regret it.

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 great when you can 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 Restaurant is simply enchanting! It is considered a “special occasion” restaurant, but you must go by for the great cocktails or even just to see the grounds of this beautiful spot! 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 just love the place so much and the unique experience it provides feels so magical! 🙂

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 Zeldas most times I visit Capitola. Great food, and seeing 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. Honestly, it’s a little pricy, but for the best views and atmosphere. I (apparently!) think 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!

Click here to see shocking photos of Zelda’s from a big storm in early 2023. Amazing evidence of the power of the ocean! The storm broke apart a section of the Capitola Wharf and many of those pieces ended up inside of Zelda’s main dining room! Of course, the other nearby restaurants were similarly affected, but all seem back in business now, thankfully!

Ready to Eat Your Way Through Capitola?

Now that you know where to eat, the only thing left to figure out is where you’ll nap after all those margaritas, bear claws, and breakfast burritos.

Need a place to stay that’s charming, walkable, and actually worth the price?
I’ve got you covered with my favorite spots in Capitola, from cozy inns to beachfront beauties.

👉 Click here for my guide to the best places to stay in Capitola.

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. From beach strolls and boutique shopping to hidden spots that locals love, this little town has more than just great food.

Want ideas for how to spend the rest of your day in Capitola?
I’ve rounded up all my favorite activities—from relaxing to adventurous—in one easy post.

👉 Check out my guide to what to do in Capitola

Because a good meal is only the beginning of a great day.

Map of Mentioned Places

Save me for later