When we say we are the original Margaritaville, we mean the very first in the world period.

Our Story

MARGARITAVILLE first opened its’ doors on July 3rd, 1984. It was started by owners Steve Yates and Carl Wright. The Capitola beach location proved to be a hotbed of activity and cultural growth. MARGARITAVILLE quickly became ‘the hangout’ for bikers, artists, surfers, and anybody else on the scene in the early eighties. After a couple of years, Wright moved on to San Diego, while Yates continued to build, eventually opening MARGARITAVILLE restaurants in Monterey, San Francisco, Sausalito, and Walnut Creek.

Our basic premise at MARGARITAVILLE is to provide a fun and exciting “getaway,” a “Vacation for the night.” The focus is on quality food, outstanding service, and great drinks – all offered at a superior value than our competitors.

Twenty years later, while the restaurant has stayed true to its core values, our overall concept has evolved. We still offer our authentic Mexican cuisine, but now with an added California flair. There is a greater emphasis on service and making the restaurant a great family environment.  “fun for all ages.”    There have been periods of “wild behavior” during the history of MARGARITAVILLE. We gained a notoriety and were considered ‘The place’ to party. This led us to consider a major overhaul of the restaurant layout, menu concept and décor. This became a four year process of construction and improvements resulting in what you see today. The dramatic renovations transformed our shabby old building into an architectural ‘Zion.’  Done in stucco, the building maintains a strong sense of history while moving along into the new millennium. On the inside you will find many touches by local artists, including custom tile work, hand blown glass “shell” lanterns and a one of a kind lighted resin top bar. While still maintaining our status as the hottest bar and restaurant on the Central Coast, we’ve tamed a little of our “wildness.”

At MARGARITAVILLE, we listen to our customers. Our unique setting and ambience provide our guests with an experience so spectacular, it’s like a mini-vacation. Set right on the water in beautiful Capitola Village, MARGARITAVILLE boasts one of the best views on the Monterey Bay. Come on by and indulge your senses at MARGARITAVILLE.

During the 1980’s, MARGARITAVILLE started the now nationwide “Designated driver Program.” later adopted by MADD, which they considered  the “best promotion in fifty years.” We continue to offer this program today