In a bold move that signals a dramatic shift in California's approach to public spaces and nightlife, Santa Monica has officially launched the state's first coastal "Entertainment Zone" on its iconic 3rd Street Promenade. This groundbreaking development allows adults to stroll, shop, and socialize with alcoholic beverages in hand—a concept that was virtually unthinkable in California's beach communities until recently.
The unanimous approval by Santa Monica's City Council in May 2025 marks the beginning of what industry experts are calling "California's open container revolution," a trend that could transform the economic landscape of beach cities still struggling to recover from pandemic-era losses.
Senate Bill 969: The Game-Changer for California's Public Spaces
This coastal transformation stems from Senate Bill 969, which quietly went into effect in January 2025. The legislation, which expanded entertainment zone privileges from San Francisco to the entire state, allows cities to designate specific areas where open container prohibitions are lifted for beverages purchased from participating businesses.
"This is a complete paradigm shift for California's approach to public space and hospitality," explains urban planning consultant Maria Rodriguez. "We're seeing a move toward the European model of social drinking, where adults can responsibly enjoy alcoholic beverages in designated public areas."
The law enables on-sale licensees, beer manufacturers, and winegrowers to allow patrons to leave their premises with open containers of alcoholic beverages, provided they exit directly into an entertainment zone and follow local ordinance specifications.
Santa Monica's Bold Vision: Revitalizing the Promenade Through Innovation
Santa Monica's Entertainment Zone encompasses the 1200-1400 blocks of the Third Street Promenade, between Wilshire Boulevard and Broadway. The initiative comes at a critical time for the once-thriving commercial district, which has seen foot traffic decline by more than a third since 2019, and vacancy rates hover between 2%and % -25% in 2024.
"We're trying to revitalize the downtown core, support our small businesses, and bring fun and joy and vibrancy back to the promenade," Vice Mayor Caroline Torisis explained during the council meeting that approved the ordinance.
The Entertainment Zone operates under five essential rules: 1. Patrons must be 21+ and wear an official wristband. 2. Only alcoholic drinks purchased from participating businesses are allowed 3. To-go alcohol must be in non-glass, non-metal containers 4. Patrons must finish their drinks before entering another establishment 5. Alcoholic beverages must be consumed within the zone boundaries
The city is implementing a "soft rollout" with initial hours on Friday through Sunday from 6 p.m. to 2 a.m., with the potential to expand to daily operation from 8 a.m. to 2 a.m. The official celebratory launch is scheduled for June 21, 2025, during the Pride on the Promenade event.
Laguna Beach: A More Measured Approach to Promenade Drinking
While Santa Monica embraces the full entertainment zone concept, Laguna Beach is taking a more measured approach that reflects its unique character and community priorities.
The Promenade on Forest, an outdoor dining and retail pedestrian plaza created in June 2020 to assist businesses affected by COVID-19 restrictions, currently maintains stricter alcohol regulations: "Alcohol must be consumed on the dining decks, purchased from one of the restaurants located in The Promenade, and be consumed with a bona fide meal. Outside, alcohol is prohibited."
However, change may be coming. In February 2025, the Laguna Beach Special Planning Commission met with the California Department of Alcoholic Beverage Control (ABC) to discuss potential modifications to alcohol service in the promenade area.
The commission confirmed that with proper signage and barriers, the promenade could allow for the consumption of beer, wine, and distilled spirits, though alcohol service would remain restricted to designated restaurant areas. Restaurants would be required to use branded glassware to help identify where drinks originated, assisting with enforcement.
This more conservative approach highlights the spectrum of implementation options available to cities under SB 969, allowing each community to tailor policies to their unique needs and character.
The Economic Imperative: Why Beach Cities Are Embracing Entertainment Zones
The driving force behind this trend is undeniably economic. Downtown Santa Monica Inc. Chief Executive Andrew Thomas articulated this clearly: "We believe that the entertainment zone will have a positive impact in downtown, not only by boosting foot traffic and supporting local businesses but also by encouraging leasing in a one-of-a-kind area like the Third Street Promenade."
The statistics tell a compelling story: - Third Street Promenade foot traffic dropped by more than a third since 2019 - Vacancy rates reached 30-35% during the pandemic - Rates remained at 20-25% by 2024, indicating a slow recovery - Businesses continue to struggle following both pandemic restrictions and the January 2025 wildfires
Entertainment zones offer a multi-faceted economic solution: - Increased foot traffic to commercial districts - Support for existing businesses through expanded service options - Attraction of new commercial tenants to high-vacancy areas - Creation of vibrant atmospheres that draw both locals and tourists
Beyond Santa Monica and Laguna Beach: The Spreading Trend
The entertainment zone concept is gaining traction beyond these early adopters. Cities across San Diego County are actively considering implementation, according to NBC San Diego reporting from January 2025.
National City Mayor Ron Morrison confirmed that while his city does not currently have entertainment zones established, it is "certainly something that we can look to for future planning as long as any aspects of implementing any new policy are carefully considered."
Local business owners in coastal communities have expressed enthusiasm. Andrew Hannegan, owner of Hannegan's House Beer Co & Creamery in National City, stated: "I think it will be a great opportunity to be able to participate within those zones if they do move forward with them," adding that such zones could be "a driving point to the city, if done properly."
As more cities evaluate the success of early adopters like Santa Monica, we can expect to see a wave of entertainment zone designations across California's beach communities in the coming months and years.
Balancing Economic Opportunity with Community Concerns
Despite the economic promise, entertainment zones are not without controversy. Community members have raised legitimate concerns about public safety, enforcement challenges, and potential impacts on existing social issues.
John Alle, co-founder of the Santa Monica Coalition, voiced security concerns: "There aren't enough security or enough staff members to protect our buildings. My building is boarded up, part of it because storefronts are smashed and are empty... It's unsafe."
Similarly, in National City, Tomas Gomez from Market on the 8th food hall questioned: "When you have a place like this, your limitations are clear... no alcohol beyond this point, and who is going to describe and enforce those limitations?"
Cities are addressing these concerns through various measures: - Requiring wristbands to identify legal drinkers - Mandating branded glassware to track where drinks originated - Establishing clear boundaries with signage - Coordinating between police and private security - Implementing regular review periods to assess impacts.
Santa Monica, for example, has identified metrics to evaluate both positive impacts (sales tax revenue, foot traffic) and potential negatives (calls for police service, increased maintenance needs), with the first formal evaluation scheduled six months after activation.
The Future of California's Coastal Nightlife
As entertainment zones spread across California's beach cities, we're witnessing the emergence of a new model for coastal nightlife—one that blends economic revitalization with enhanced visitor experiences.
The trend represents a significant shift in how these communities approach public space, economic development, and the balance between vibrant commercial districts and community safety. It also signals California's willingness to experiment with policies that have long been common in European cities but previously rare in American public spaces.
For visitors to California's beach cities in 2025 and beyond, the experience promises to be more social, interactive, and vibrant. For business owners and property developers, entertainment zones offer a potential lifeline after years of economic challenges.
The success of these early entertainment zones will likely determine how widely and rapidly this model spreads. If Santa Monica's experiment proves successful—boosting business without compromising safety—we may see a transformation of California's coastal communities that extends far beyond the current pioneers.
As Andrew Thomas of Downtown Santa Monica Inc. put it: "I consider us to be the outdoor patio for our downtown community." That vision of public space as a communal living room, where adults can responsibly enjoy alcoholic beverages while experiencing the unique character of California's beach cities, may well be the future of coastal hospitality in the Golden State.
About the Author: Mark Lee Bolender is a Southern California Associate Broker with a focus on serving California's evolving coastal real estate markets. This article is part of our ongoing coverage of innovative approaches to post-pandemic economic recovery in tourist destinations and slower traffic flows due to the softer economiey and uncetainbity..
