Margaritaville has been welcoming guests to Capitola for over 30 years. In January 2015 the original owners sold the business to Sunset Hospitality Group, a Santa Cruz family owned and operated company. They completed a full remodel of the restaurant, reinvented the food and service and opened May 7, 2015.

The new Margaritaville is dedicated to serving made from scratch Mexican seafood in a first class casual environment. Their dog-friendly heated patio is a great place to enjoy Baja fish tacos and raw oysters on the half shell. Their chile verde, chicken mole enchiladas, and al pastor tacos are rooted in tradition. In addition they take pride in serving a variety of handcrafted margaritas made with fresh juice and local produce.