What’s Working

Ahead of a September 2026 talk to the Laguna Beach Business Club, I had informal conversations with eight local business owners and operators. They described recurring themes, but also sharply different experiences. There is no single explanation for success or failure here. The challenge is aligning customers, costs, location and community support.

What we heard, and what complicates it

• Coffee shops and restaurants appear busy — but several owners believe Laguna has too many of them.
• Laguna attracts millions of visitors — but not all pedestrian activity converts into paying customers.
• Laguna has extraordinary household wealth — but even affluent customers have become more price-conscious.
• Residents want more resident-serving options — but operators question whether residents support them enough.
• Property values require rents many shops can’t support — and business sales don’t always support the required rent.
• Businesses want collaboration and referrals — but operators often feel disconnected from local institutions.
• Parking comes up again and again — though some operators see rent, business mix and adaptability as bigger obstacles.

What the strongest businesses have in common

They aren’t all the same, but they tend to share several characteristics:

• Reputation and word of mouth. Repeat customers and referrals create demand that doesn’t depend on walk-by traffic.
• A clear understanding of the economics. They know what their concept can support and align rent, staffing and investment with realistic sales.
• Quality work and customer service. Doing the work well turns individual transactions into repeat business.
• Online discovery plus a physical experience. Customers find them online, then travel to Laguna for something participatory, personal or memorable.
• A specific reason to visit. Distinctive concepts give people a reason to seek them out.
• Relationships that generate referrals. Hotels, churches, contractors, merchants and cultural organizations become sources of business and support.

Seven practical lessons

1. Know precisely whom you serve. Resident, visitor, hotel guest, regional customer, or a deliberate combination.
2. Create demand beyond foot traffic. Online discovery, participatory experiences and distinctive offerings give people a reason to come.
3. Align the real estate and cost structure with the concept. Permitted use, parking, access, layout, rent and improvement costs all have to fit realistic demand.
4. Use Laguna Beach as part of the brand. A Laguna location can create value beyond the customers who physically visit.
5. Revisit real estate decisions before deadlines force them. Lease terms, rent, ownership opportunities and space needs deserve periodic review.
6. Build relationships that generate referrals. Hotels, neighboring merchants, contractors, service providers and cultural organizations.
7. Experiment before making permanent commitments. Pop-ups, events, collaborations and seasonal programming can test demand.

What the city and local institutions can do

Business success isn’t solely the responsibility of individual merchants. Owners suggested:

• Make it easier for spaces to adapt. Clearer, faster pathways for reasonable changes in use and occupancy.
• Welcome and connect new businesses. One new operator said no local organization had contacted her to say, “Welcome to Laguna Beach — how can we help?”
• Improve communication. Clearer information about construction, regulations, transportation, events and other decisions that affect businesses.
• Support parking turnover and transportation. Help customers reach commercial districts without limited parking becoming long-term storage.
• Encourage collaboration with hotels, churches, cultural institutions and venues. Hotels bring a large audience to Laguna and could do more to connect guests with local businesses.
• Protect room for distinctive concepts. Avoid letting high costs and difficult approvals produce an increasingly narrow, repetitive business mix.
• Preserve useful flexibility. Outdoor seating, signage, temporary activations and collaborative events help businesses respond to change.
• Support merchant-led events and district collaboration. Revive joint events, scavenger hunts and district promotions that give merchants a reason to meet and customers a reason to explore.