Coastal Crown Jewel: Cayucos is Alive and Well
Story by Katy Budge
Photography by Ruby Wallau
The town of Cayucos has been a prime vacation destination for decades, and for many good reasons. With a population just shy of 2,400, it truly is one of the last small California beach towns. It enjoys a serene seaside location surrounded by rolling hills and ranch land. Its temperate weather encourages a myriad of outdoor activities.
It also exudes an authentic charm, thanks in part to the iconic pier that serves as the town’s focal point. And Cayucos draws throngs of visitors throughout the year for time-honored traditions such as the Fourth of July celebration, Antique Street Faires and even the New Year’s Day Polar Dip in the chilly Pacific Ocean.
To add to its allure, Cayucos has a robust food scene for such a small town. Each restaurant seems to have found its own little niche. When it comes to ambience, an ocean view is rivaled only by a peaceful garden atmosphere. Food options run the gamut from Mexican food to gluten-free blue corn waffles, fresh donuts or a steaming cup of cappuccino, award-winning clam chowder or nationally recognized brown butter cookies.
Ghost Stories
Much of Cayucos has remained the same since the pier was built in 1872, but a lot has changed —change that admittedly has included some growing pains. As is the case with much of coastal California, Cayucos is subject to the modern pressures of short-term rentals and rising real estate prices. According to Zillow, an online real estate marketplace, the average home cost in Cayucos is higher than in Morro Bay, San Luis Obispo, Monterey and even San Diego.
But is Cayucos really on its way to “becoming a ghost town” as stated in a recent Los Angeles Times article? It alleged that the transformation of homes into vacation rentals has left the town deserted through the off season. The way many long-time business owners here see it, ghost town claims would be something of a fish tale — highly exaggerated.
“The heartbeat of our town is still really strong thanks to the support of our community,” Jeniece Grimshaw observes. A San Luis Obispo County resident since 2014 and a graduate of Le Cordon Bleu culinary school, she opened her Bijou Bakery at the north end of Cayucos in 2020. It quickly gained a following for her wide variety of French-inspired pastry items.
Jeniece’s positive sentiment about the town is echoed by many in the local restaurant industry.
Dependence on Tourism
Like most scenic, charming California towns, Cayucos has traditionally depended on tourism, but tourists come and go.
“We’ve always had a falloff as summer ends, and sometimes in December it almost is a ghost town,” notes Carol Kramer, who has owned the Sea Shanty restaurant with husband Bill Shea since 1983. The casual, buzzy restaurant serves up hearty meals, but those in the know will save room for desserts such as fruit pies, chocolate mousse and The Kitchen Sink sundae.
Over the four decades that Carol and Bill have lived in Cayucos, they’ve experienced a lot of transitions. “We’ve seen all the ups and downs, but we’ve always been very supported by local people,” she says. “This last summer was busy with a lot of young families visiting.”
No doubt many of those families were staying in vacation rentals. But rather than be a harm to local industry, Carol believes it fills a need. “We really don’t have enough hotels to meet demand, so those actually help pick up some of that slack,” she says.
It’s true that short-term rentals aren’t occupied year-round, but “Cayucos has always had a vacation aspect, and it’s still a very seasonal town,” says Schooners Wharf Owner Brendan Fritzsche. His nautical-themed restaurant is one of the town’s more popular spots, in part thanks to its full bar and its scenic perch above the historic pier and expansive beachfront.
For Brendan, the market presented an opportunity, and he recently added four vacation rentals to his business portfolio. “The building next to us used to be a motel, so it seemed natural to go in that direction,” he explains.
How to Define “Local?”
Perhaps because of its enduring appeal, or its relative proximity to California’s major cities, Cayucos has a lot of repeat customers. As such, a case could be made that vacationers who return year after year have come to be considered “locals” by some businesses.
“We have a lot of out-of-town regulars that have become like family,” says Juneé Sherwood, who runs Cayucos Sausage Company with husband Don Sherwood. “They’ll come in and say, ‘We’re back!’ and get all their favorites.” And, because the business is also a butcher shop, many folks staying in vacation rentals will grab something to throw on the grill.
If Cayucos does seem a bit sleepy of late, Juneé points out a couple of factors that have adversely affected the town. The off-and-on shutdowns of Highway 1 have throttled the number of tourists passing through, but perhaps more impactful was the 2016 shuttering of the Cayucos Veterans Hall due to structural and safety concerns. Situated at the end of the picturesque pier, the historic hall acted as a community gathering place for everything from weddings to the popular Sea Glass Festival. The opening of the restored and redesigned building this year is expected to provide a big boost to local businesses.
Dependence on Each Other
That Cayucos has survived these recent ups and downs — including the pandemic — proves this is a resilient community.
“Of course Cayucos has its slow seasons, like any beach town, but we have a fierce local base that keeps it going through those seasons,” says Ellen Sizemore, who recently opened the pier-side Pie in the Sky Pizza with her husband Jeremy Sizemore. (He co-owns Spearhead Coffee in Paso Robles; he and Ellen also own High Tide in Morro Bay.)
Ellen adds that, like themselves, most Cayucos business owners live in town. “We have a really good camaraderie between all of us,” she says, adding that as locals, “we obviously care deeply about this town and want to protect its character.”
Like any town, there’s an ebb and flow to the Cayucos commercial landscape. Stalwarts such as the hardware store have closed, and the treasured Old Cayucos Tavern & Card Room only opens intermittently. However, new businesses have recently opened their doors, such as a makers’ gallery and a skin care studio featuring locally crafted products. “Change is inevitable, and not always a bad thing,” notes Jeniece.
She, like Ellen, stressed the importance of civic support. “Probably a third of my bakery clientele are dedicated regulars,” she says. And she notes that referrals from other businesses are the norm in Cayucos, perhaps because there’s remarkably little overlap on menus in town.
“There’s just a really symbiotic relationship with all the business owners,” Jeniece says. “We really uplift and inspire each other, and have a real interest in keeping this community strong.”
