Santa Monica Brew Works Plans 'Surf Shack' Restaurant On Pier

SANTA MONICA, CA — Santa Monica Brew Works is moving closer to opening a surf-inspired restaurant and live music venue on the Santa Monica Pier, taking over the former Rusty's Surf Ranch property that has remained vacant since early 2025.

The Santa Monica City Council voted Oct. 13 to authorize the city manager to negotiate and execute a lease with the locally owned brewery for the restaurant space at 256 Santa Monica Pier, according to the city's official council agenda and accompanying staff report.

Tentatively named "Surf Shack by Santa Monica Brew Works," the proposed fast-casual restaurant would feature a surf-, skate- and beach-inspired concept, serving food alongside the brewery's locally produced beer, as well as wine and spirits, subject to licensing requirements.

Live music and entertainment would also feature prominently. City officials said the establishment would become the Pier's only dedicated live music venue under its current tenant mix, restoring a longstanding entertainment use to the waterfront destination.

The proposed restaurant would occupy approximately 3,039 square feet of interior space, with an adjoining 1,073-square-foot outdoor patio, and operate seven days a week, subject to customary closures.

Founded in 2014, Santa Monica Brew Works opened its tasting room in 2016 and added an outdoor beer garden in 2020. The company also operates Emmy Squared Pizza restaurants at its Santa Monica brewery and at L.A. Live.

City To Contribute Up To $750,000

Under the proposed agreement, Brew Works would pay monthly base rent of $5 per square foot, increasing 3 percent annually, plus 89 cents per square foot each month for common-area maintenance, security and Pier operations.

The lease would begin with a five-year term and include two five-year extension options, potentially allowing the restaurant to remain at the location for up to 15 years.

The city would provide up to $750,000 for tenant improvements, which would become city property once installed. Santa Monica would also separately pay for necessary repairs to the building's roof, structure, electrical and plumbing systems, heating and cooling equipment and other infrastructure, while waiving city-imposed building permit and plan-check fees for the initial improvements.

However, the staff report does not provide an overall cost estimate for those additional repairs. City officials estimate the agreement would generate approximately $214,800 annually for the Pier Fund once rent begins.

The financial terms are less favorable to the city than those previously approved for California Roadhouse, which was selected through a competitive leasing process earlier this year.

That proposal called for base rent of $6.50 per square foot, with a $100,000 first-year rent waiver, and up to $625,000 in city-funded improvements. The city projected approximately $325,000 in annual Pier Fund revenue after the first year, compared with approximately $215,000 under the Brew Works proposal.

Negotiations with California Roadhouse ultimately collapsed in the summer. According to the city's Sept. 2 notice to the Santa Monica Pier Corporation, the company declined to execute the proposed lease, and negotiations ended in July.

Former Rusty's Workers Offered Hiring Opportunity

The proposed Brew Works lease also includes provisions intended to give former Rusty's Surf Ranch employees an opportunity to return to work at the property.

Eligible former employees would be notified of a 30-day hiring window before the restaurant opens and offered interviews. Qualified applicants would receive written employment offers for available positions, depending on the brewery's staffing needs.

Those hired would enter a 90-day introductory employment period before transitioning to the company's standard employment policies. The provisions would be established through the lease rather than Santa Monica's worker recall and retention ordinances, which took effect after Rusty's ceased operations.

According to the city's Oct. 13 council presentation, California Roadhouse had sought changes to the employee-retention provisions and removal of longstanding labor-peace requirements included in Pier leases. The proposed Brew Works agreement would retain those labor-peace protections.

City officials said the restaurant would help reinvigorate the Pier's live music scene while bringing a locally established business to one of Santa Monica's most recognizable destinations.

Although the council has authorized the city manager to negotiate and execute the lease, the documents do not establish that a final agreement has been signed. No opening date has been announced.