Capitola newcomer Pete’s Fish House delivers breathtaking views and elegant seafood

When it comes to waterfront dining in Santa Cruz County, the quality of the view does not always align with the quality of the meal. Most of the restaurants close to the water are casual, family-friendly places ideal for day-trippers stopping in on their way to or from the beach. 

That’s not necessarily a bad thing – who doesn’t like a bowl of clam chowder or fish and chips while staring out at the ocean? But Pete’s Fish House in Capitola Village, which opened in August, offers something this coastal community doesn’t have nearly enough of: elegant, sustainable seafood dining with breathtaking views of the water. 

Pete’s is the newest project from restaurateur Sarah Orr, who owns Margaritaville on the first floor of the same building and Stokes Adobe in Monterey, and recently acquired the historic Snack Shack at Lovers Point in Pacific Grove. Orr named the new Capitola restaurant after her late father and mentor, Peter, who had a love of seafood, especially raw oysters and clams, Orr told Lookout in August. 

From the restaurant’s second-story vantage point at the end of the Esplanade, Pete’s Fish House offers unobstructed views of Soquel Creek as it enters Capitola Beach, the candy-colored historic beach bungalows, the (newly reopened) Capitola Wharf and Monterey Bay. The indoor dining room is small, with only 10 tables, but feels spacious with white walls, airy, beachy touches and comfortable seats facing tall windows. There are more tables outside on the balcony, overlooking the creek and Stockton Avenue bridge, and more dining space near the bar, including a few seats at an outdoor counter facing the beach. 

Orr worked with Anthony Kresge, former executive chef at Capitola restaurants Shadowbrook and Sotola Bar & Grill, as a consultant to help craft the menu, alongside chef Desmond Schneider. Schneider, formerly of Alderwood and Seabright Social in Santa Cruz, and the pop-up Pizza Bones, is leading the kitchen. 

Both chefs are known for their commitment to sourcing ingredients seasonally from nearby farms, and for elevating beloved comfort foods – such as sandwiches and pizza – with high-quality ingredients and craftsmanship. This style was expressed across Pete’s tight but impactful seafood-focused menu, which manages to be both approachable and surprisingly elegant. 

As a low-slung sun leaked soft golden rays across the horizon, cold trays of oysters ($28 for six, $48 for 12, and up), served simply with house mignonette, lemon and hot sauce, drifted to tables decorated with silver buckets of bubbly. I started my meal with a Bellini ($14), a house specialty made with peach purée and prosecco, and fluffy focaccia ($8) spread with smoky, salty butter. 

While oysters and shrimp cocktail ($21) are always in style – sometimes, despite the cost, the heart wants what the heart wants – other more composed dishes on Pete’s menu are also intriguing. Each piece of firm, cold-smoked Hawaiian kanpachi crudo ($24) was perfumed with citrus, decorated with sweet trout roe and flavored with rich aged soy sauce. 

The chilled scallop verde ($22) was a standout, the pearly flesh quickly seared and served over an herbaceous sauce. Dotted with salty dill relish and tiny slivers of red chili, the savory freshness of the herbs matched the sweet richness of the scallop. 

The beverage list is limited to wine and beer, although Orr hopes to add a full bar in the future. Most of the wines come from California, with a couple selections from France. The beer list includes a lager and a hazy IPA from Capitola brewery Sante Adairius Rustic Ales. 

In late summer, nothing but the best tomatoes are acceptable on any menu, so I was charmed to see the variety called out by name in the heirloom tomato salad ($18). Made with plump, juicy brandywines, creamy fromage blanc and at least a half-dozen herbs, including dill, shiso and parsley, it was as refreshing as a walk through a summer garden.  

Pete’s approach to the classic pasta and clams ($36) was unlike any version of the dish I’ve had. A creamy, smokey sabayon sauce melted into thick, bouncy, almost udon-like noodles, mingling with clams that had already been lifted from their shells – saving the diner the work. It’s fun and memorable, kind of like a cross between pasta Alfredo and vongole that passed through Japan on the way to the table. No, I didn’t share. 

The skin on a generous serving of Pacific striped bass ($34) was crispy above the mild, buttery flesh, but, with just two shiitake mushrooms and two coins of summer squash, it lacked substance as an entrée. 

The other mains tempted as they made their way to other tables, including a sandwich stuffed with soft-shell crab ($28), a ceramic pot of mussels ($30) in white wine broth and even a wagyu strip steak ($68), dark with sauce au poivre. Watching twilight deepen over the idyllic scenery while slowly finishing a long meal with a scoop of pistachio gelato ($9) is a luxury unto itself, but Pete’s Fish House offers many reasons for a return visit besides the great views. 

231 Esplanade, Suite 102, Capitola; petesfishhouse.com.

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