Ocean Avenue in Santa Monica is currently teeming with summer tourists, signaling the hospitality business is almost back to normal in the beachside city after Covid-related difficulties. 

“I think we’re doing pretty well; we are certainly leading the Los Angeles recovery,” said Misti Kerns, chief executive of Santa Monica Tourism and Travel. “Our hotel occupancy has certainly picked back up over where we were pre-pandemic. We’ve had over 1,000 businesses open here in the last year.”

Santa Monica, which attracts tourists as well as locals, is a kind of bellwether for restaurants and other retail activity for all of Los Angeles. And the fact that activity there, while not yet what it used to be, is on an upward arc is heartening to many.

Almost 40 business permits filed in the city last year were for restaurants, according to the city of Santa Monica. This year is on a similar pace: 23 restaurant permits were filed in the first half of the year. 

One of those new restaurants, Mediterranean eatery Mon Ami, debuted in May on Ocean Avenue, taking the space formerly occupied by 41 Ocean, a nightclub that went under during the lockdowns. 

Mon Ami is just one of several new attractions on the Pacific shoreline. Other recent openings include tapas restaurant Bar Monette and The Georgian Room at the Art Deco-style Georgian Hotel. All are offering upscale dining experiences.

“I think post-pandemic, people are not just going out to go out, they want to go out for a purpose,” said Nas Negahban, owner and chief executive of Santa Monica-based Pacific Coast Hospitality Group, which operates Mon Ami. “If you put a good product out there, hopefully, kind of like the Kevin Costner movie, ‘If you build it, they will come.’” 

Not smooth sailing

Refurbishing the Santa Monica scene has not been without its challenges post-2020. The region has always been very focused on international travelers, who were largely absent during the pandemic.  

“They stay longer, they spend more money, and they use public transportation,” said Kerns. “It’s just the perfect formula for a destination like ours.” 

But flights from foreign destinations have been slow to return to Los Angeles International Airport. The airport reported 1.8 million international travelers in May, down from the 2.2 million international travelers in May 2019. According to the airport, international visitors made up 21% of the city’s total visitors last year, up from 9.2% in 2021, but far below the 51% level in 2019.

“A lot of that is just due to worldwide issues such as labor shortages and not all flights completely back and restored,” said Kerns. “I think the future is looking really bright. People are willing to spend money, that pent-up demand is certainly out there. How long will that last? I think that’s the big question. But I do firmly believe that within the next 12 months we’ll be back fully.” 

According to Santa Monica Travel & Tourism, roughly 5.3 million visitors came to Santa Monica last year, up 52% from 3.5 million in 2021, but still down from the 8.4 million who visited the city in 2019. Daily per capita spending fell by 13%, but a higher number of visitor days spurred 28% more total direct visitor spending, which reached $962 million.      

Visitor activity supported 8,049 local jobs, a 40% increase over 2021. International volume grew last year by 249% over 2021, reaching a 21% share of total visitor volume and 34% of total visitor spending. 

Difficulties luring diners

Santa Monica visitor spending on meals reached nearly $172 million last year, up from $160 million in 2021, but an increase in the number of places at which visitors can spend their dining dollars makes it more difficult for restaurateurs to lure customers. 

Negahban, whose company also operates the nearby Canary nightclub in Santa Monica, noted that the cost of goods is much higher than pre-pandemic and that diners are “a little bit more selective now on where they go.”      

“That’s why we wanted to make sure we put a unique experience, a more affluent experience,” he said. “Something that isn’t just plug and play, but kind of has its own unique flair and authentic play to it.” 

To capitalize on the Santa Monica cachet, Mon Ami’s opening menu was put together by local chef talent — Samir Mohajer of Santa Monica-based Rustic Canyon and Sabel Braganza of West Hollywood’s EP+LP. The Mediterranean-centric menu features ingredients sourced from the Santa Monica Farmer’s Market and highlights the flavors of Spain, Greece, Italy, France and Morocco. Negahban hopes the menu and craft cocktails will stand out from the rest of the city’s offerings.

“I really wanted to bring the Mediterranean experience,” he said. “I’ve seen a lot of Mediterranean restaurants pop up in the last few years that don’t feel authentic. 

Mon Ami also takes advantage of its indoor-outdoor aesthetic in a space designed by John Sofio of West Hollywood-based Built Inc. The restaurant has an enclosed outdoor patio in addition to a Mediterranean-inspired indoor space. 

While Mon Ami’s outdoor patio is incorporated into the structure, many Santa Monica restaurants embraced the outdoor dining trend by necessity during the pandemic. The outdoor spaces have remained in many locations in the city. 

“Those that have taken advantage of the outdoor dining program here in Santa Monica, we have quite a few that remain, and it’s not cheap,” said Kerns. “It’s certainly an investment, and I think that those that have invested are happy that they did.”

Kerns said she hopes to see restaurants in the city further embrace outdoor dining, adding that the city continues to encourage it. 

The cities of Santa Monica and Los Angeles have considered increasing fees for restaurants with outdoor dining patios, which could drive dining back indoors. 

A bill is before the California state legislature that would override city and county ordinances that require new permit applications and fees for restaurants with outdoor dining setups. AB 1217 is still in its early stages but could hit Gov. Gavin Newsom’s desk this fall. 

“For the weather we have and the reason we all live here, it certainly seems like it should be a no-brainer that we should all be working it out,” said Kerns. “Many researchers will say that Santa Monica is the canary in the mine, that whatever trends are happening there those business trends start to happen elsewhere.”