ENCINITAS — What could become the second brewery east of Interstate 5 in Encinitas received key approvals as it moves closer to its first pour.
The Encinitas Planning Commission approved a series of permits for Encinitas Brewing Company to occupy the vacant space at 1588 Leucadia Blvd in the Plaza at Encinitas Ranch shopping center, taking over the former Islands Restaurant location.
The proposed business would fill a 5,500-square-foot space next to REI and share a parking lot with a Walmart Supercenter, Starbucks and other nearby businesses.
Commissioners also recommended adding three bike racks capable of securing six bicycles.
Brian McBride, a partner in the brewery, said the name — though “kind of misleading in a sense; we’re a restaurant first” — was significant to the ownership group and its intentions for the business.
“There is something about having the city’s name in the name of the business that creates a little bit more of a desire to treat it well,” McBride said. “Encinitas has a broad amount of things that they do well already and we can add to that.”
The commission approved a major use permit modification to change the alcohol licensing from an Alcoholic Beverage Control Type 47 license to ABC Type 23 and Type 74 licenses — a small beer manufacturer and craft distiller, respectively — to support an on-site brewery and tasting room, according to city documents. The modification also includes changes to the interior layout.
If approved, it would join Fox Point Brewing Company as the only other business in Encinitas with an ABC Type 23 license that is not located on or within close proximity to South Coast Highway, according to the state agency.
The project also required a design review permit covering facade changes and an expansion of the outdoor dining patio from 517 to 1,240 square feet, along with a new 325-square-foot patio, a net increase of 1,048 square feet.
Exterior improvements would include vertical wood siding, a metal canopy, repainting of existing stone veneer, retractable floor-to-ceiling glass doors, patio fencing and new exterior lighting.
The proposed layout includes 106 seats indoors, 72 seats on the larger outdoor patio and another 16 seats in the additional patio area. Plans also describe a tap room, bar area, restaurant dining room, cellar, brewhouse, cold storage room, kitchen and restrooms.
Raffi Mangassarian, a planner with the city, said all grain storage and brewing operations would take place indoors, with no outdoor silo or other storage containers permitted.
“All the grain, all the manufacturing would take place indoors,” Mangassarian said.
McBride agreed, saying everything would be conducted inside the building.
The business would operate from 10 a.m. to 11 p.m. daily, with alcohol service ending at 11 p.m., according to planning documents. No live entertainment is proposed, though ambient music would be played through an internal sound system.
According to the city, the brewery is consistent with the site’s land-use designation (Specific Plan 3) and zoning (ER-C, or commercial), which allows retail, restaurant and service uses in a location that “is auto-oriented with large surface parking lots adjacent to ‘big box’ stores and strip commercial centers.”
City code requires commercial centers larger than 100,000 square feet to provide one parking space for every 200 square feet of floor area. The existing center’s nearly 147,000 square feet requires 736 spaces, according to the city.
The site currently provides 610 parking spaces, short of the required minimum.
Due to the shortage, a parking study was required to ensure the patio expansion would not create parking demand that could not be accommodated on-site, per municipal code.
LLG Engineers submitted the parking study to the city in December 2025. The study found that during peak hours on the days data was collected, the parking lot was 44% full. The parking study also projected that, assuming no vacant tenant spaces in the center, peak demand would reach 69% of the site’s existing parking supply.
The city approved the modification, which is expected to increase parking demand by six spaces.
McBride said he had never seen the lot more than 30% full when he had driven by.
“That center is a little weird, but I think it works great for what we’re trying to do and parking is amazing,” he said.
Commissioner Robert Prendergast asked whether parking estimates considered what he described as a “rumor going around that there might be a grocer going into the site next door, where the REI was.”
“Whether it’s a retail store like REI or a grocer, it doesn’t matter,” Mangassarian said. “It’s the same count.”
Commissioner Bridget Kimball said she believed a brewery would be a positive addition to the space.
“That shopping center has been somewhat desolate for a while,” she said. “So I think it is attractive.”
Kimball also raised the issue of bicycle parking, noting that as the city tries to become “more bike friendly,” bicycles left on walkways could create conflicts for pedestrians.
“I do share the sentiments that the bike racks should be well placed and abundant,” Commissioner William Whitteker said. “Instead of a parking plan, we should have a bicycling plan.”
McBride said he believed some bike racks already existed on the property but that his team would “be happy to make sure that piece is set up.”
City staff said the nearest residences are about 1,000 feet away across El Camino Real and that outreach for the project generated no public opposition. According to the staff report, no members of the public attended the applicant’s Aug. 18, 2025, neighborhood meeting and no comments were submitted.
Commission Chair Stephen Dalton said he supported the proposed location and appreciated the owners’ ties to the community, including the brewery’s name.
“Congratulations,” Dalton said. “I hope you’re one step closer to opening.”
