Overview:

Our business columnist's end-of-year round up of new businesses that opened in 2025 to claim a piece of the local economy.

Each week, we’re taking a closer look at the movers and shakers, the growth of industries and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

— Jessica

Taking stock of the new businesses Santa Cruz County gained in 2025

While 2025 saw many beloved businesses shutter, the year also welcomed many new ones, from retailers to restaurants, entertainment to fitness, all helping shape that uniqueness that is the Santa Cruz County business economy. As we close out the final day of the year, here’s a glance at some of the businesses we gained.

In downtown Santa Cruz alone, 13 new businesses opened. That included Fusion Fare in the long-time Planet Fresh spot on Cedar Street. Terra Superfoods, which previously operated a spot on the Capitola Mall, opened at 1010 Pacific, and was later joined by new neighbor Insomnia Cookies, a national chain specializing in late-night orders. The team behind Santa Cruz institution Gabriella Café opened a smaller sister spot in one of the downtown kiosks. Gabriela Tamaleria serves up a curated menu of tamales, burritos and drinks. Plant and homegoods shop Botanic and Lux also expanded with a second store focused on children’s items called Botanic and Lux Littles on Cooper Street.

Brothers Henry (left) and Peter Wong will open a second location of brunch spot Mad Yolks in Pleasure Point on July 8. Credit: Kevin Painchaud / Lookout Santa Cruz

Also new downtown this year are Cove Lifestyle Boutique, Santa Cruz Ayurveda, Santa Cruz Gear Exchange, Pastime Goods, Cloud Nine Mattress, Mane Kitchen & Cocktails, Love Psychic and the Salty Otter, which took over the former 99 Bottles of Beer on the Wall location on Walnut Street after brief stints as Firefly Tavern and CT Lights. Not new overall, but new to downtown: The Santa Cruz Land Trust, technically not a business but a nonprofit, moved its office to 911 Center St., Santa Cruz.

This year marked several new locations from existing businesses, too: Pacific Valley Bank expanded into Santa Cruz County with a new downtown Santa Cruz branch. The Wong brothers opened a second location of their popular breakfast joint Mad Yolks in Pleasure Point (and later opened a third over the hill). Home Restaurant opened a more casual day time spot — Home Away — in the former Vino Cruz location. Cannabis dispensary The Hook finally opened the doors at the former Emily’s Bakery on the Westside in August following extensive debate. Beloved Soquel breakfast spot the Silver Spur opened a second restaurant in Watsonville’s East Lake Village. Seaside’s Other Brother Beer Co. opened a new tasting room in Aptos Village, in the old Bonny Doon and Ser tasting room, late this month.

In a sort of musical chairs for retail spaces, the city of Santa Cruz has a new New Leaf Community Market at the larger, more expansive location in the Gateway Plaza on River Street, following the closure of the Pacific Avenue store. In that same plaza, national discount retailer Ross Dress for Less opened in the former Office Max, replacing the chain’s previous store that shuttered to make way for New Leaf. Discount grocery chain Grocery Outlet opened its newest local store in Capitola, in a space formerly home to New Leaf Community Markets before it moved to the old Lucky spot at the end of 2024.

Not far away, Portola Drive gained a slew of new businesses, including the latest Mad Yolk’s location, children’s secondhand shop Hand It Down and Beck’s Shoes new superstore, which opened in the space formerly home to Billabong. Capitola gained two new wine bars – Vin Vivant and Cocoa Vino – as well as a new Thai spot, Coconut Thai in Brown Ranch Market and a number of new tenants in the Capitola Mall, including Spontaneous Confections, Crescendo Dance Academy and Better Golf, a golf simulator experience.

It wasn’t just retail and hospitality that saw new additions to the local business scene. Married couple David and Kyla Shugar transformed the former Venus Spirits distillery and tasting room just off Swift Street on the Westside of Santa Cruz into a new kind of makerspace. (Venus left the space in 2020, moving to nearby High Road.) This past summer, Santa Cruz Makers Studios hosted kids’ summer camps, and they’ve added afterschool art classes, party rentals and more.

Speaking of transformations, in a former Rite Aid in the Whole Foods shopping center on Soquel Avenue, Camile Periat and Chris Ellis created a new, one-of-a-kind athletic club and wellness center, which opened in May. Meanwhile, the brand-new Hwy 17 Studios on Almar Avenue on the Westside of Santa Cruz opened in September, promising a new kind of events and production space that draws on the entertainment industry experience of its founders. Tech industry veterans Sol and Erica Lipman introduced PieFi, building on their downtown pizzeria to create a new “clubhouse” for AI innovation and networking.

Other notable mentions include D20 Pizza, a board game and Detroit-style pizza joint that took over the old Burger on Mission Street on the Westside, and Circle & Square Bistro in Corralitos.

The biggest opening news in 2025, however, may have been the long-awaited La Bahia Hotel and Spa, which opened its doors in September after three years of construction and four decades of planning. With 155 rooms, two restaurants, a spa, a rooftop pool and luxury amenities, it represents one of the first waterfront luxury hotels and spas in Santa Cruz County.

ICYMI: Food and toiletries distributions for undocumented ag workers become offseason lifeline

Undocumented agriculture workers play a key role in the local economy, but often an unsung one. As part of Lookout’s 2025 Newsmaker series, Tania Ortiz took a closer look at one of the organizations helping buoy these workers.The Center for Farmworker Families’ monthly distributions aim to alleviate some of the financial burdens that come with the annual temporary lull in the Pajaro Valley’s growing season. Read her full piece here.

Ch-ch-changes:

  • West Coast Community Bank exec named to a new role with a statewide industry organization: The California Bankers Association (CBA) appointed Maxwell Sinclair as chairman of its federal government relations committee. Sinclair is West Coast Community Bank’s executive vice president and chief risk officer. In his CBA role, he’ll help lead efforts to advocate on federal legislation and congressional measures that affect the banking industry.
  • Watsonville picks next police, fire chiefs: San Jose Assistant Chief of Police Brian Shab will take over as the new chief of the Watsonville Police Department starting early next year. He’ll take over from interim police chief David Rodriguez, who stepped up following Jorge Zamora’s retirement in August. Shab has served with the San Jose Police Department since 1998. City officials also named Corey Schaefer, a 27-year fire department veteran, as the next fire chief. Schaefer replaces Rudy Lopez, who is retiring after Dec. 31.
  • Anthropologie set to open downtown next month: Home decor and clothing retailer Anthropologie’s new store on Pacific Avenue in Santa Cruz is scheduled to open Jan. 21, according to the Downtown Association. Earlier this year, city officials announced the national brand would take over the former Bank of Italy building on Pacific Avenue and Soquel, which was vacated by New Leaf Community Markets at the end of 2024. Anthropologie’s parent company, URBN, also operates the chains Free People and Urban Outfitters, which each maintain stores downtown.

Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

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Save the date

  • Thursday, Jan. 15: The Santa Cruz Area Chamber of Commerce will hold its next business after-hours event at local security company Abbott SPI, Inc. from 5 to 7 p.m. Abbott SPI’s headquarters are located at 2030 N. Pacific Ave., Suite A, in downtown Santa Cruz. Register here to attend.
  • Thursday, Jan. 22: The Aptos Chamber of Commerce will host a luncheon with the county’s new executive officer, Nicole Coburn, from 11:30 a.m. to 1 p.m. at Seascape Golf Course in Aptos. Tickets are $35. Register here.
  • Sunday, Jan. 25: The 3D Entrepreneurs Club will launch its afterschool entrepreneurship clubs in 10 schools in Santa Cruz and Monterey counties this year, following successful pilot programs in 2025. An official launch event will be held at the Museum of Art & History in Santa Cruz from 2 to 4 p.m. The event will open with a panel featuring leading Santa Cruz tech entrepreneurs discussing how parents and schools can prepare students for the AI era. There will also be a mini “Shark Tank” style showcase for students to show off their 3D-printed creations. Additional details and registration are available here.
  • Thursday, Jan. 29: The Monterey Bay Economic Partnership will hold its 10th anniversary gala at the Monterey Bay Aquarium from 6:30 to 9:30 p.m. Attendees will include business leaders, policymakers and community leaders working to tackle the tri-county region’s most pressing challenges. For tickets and additional details, go here.
  • Thursday, Feb. 26: Santa Cruz Pride will hold a workshop for executives, business owners, human resources professionals and managers at the Hotel Paradox in Santa Cruz from 9 a.m. to noon. The event, titled Elevate LGBTQ+ Workplace Inclusion: The Power of Belonging, will include real stories from local businesses, networking and more. Speakers include Santa Cruz County Supervisor Monica Martinez and Sharon Papo, the CEO of LGBTQ eLearning. Register here to attend.
  • Friday, March 13: The Capitola-Soquel Chamber of Commerce’s annual awards gala takes place from 5:30 to 9 p.m. at Chaminade Resort and Spa in Santa Cruz. Nominations are currently open for person of the year, business of the year, educator of the year, outstanding youth and the community spirit awards.
  • Thursday, April 16: The Santa Cruz Area Chamber of Commerce will hold its annual community recognition awards event at The Grove in Santa Cruz from 5:30 to 9 p.m. Early bird registration is available through March 15.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

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Jessica M. Pasko has been writing professionally for almost two decades. She cut her teeth in journalism as a reporter for the Associated Press in her native Albany, New York, where she covered everything...