The Beach Grill at Padaro has closed it doors, and for many nearby Carpinteria businesses, the closing of the 24-year-old property that overlooked Santa Claus Beach came as a surprise.

“It was very sudden. I heard some of the employees didn’t even know,” said Sherrie Payden, manager of the Garden Market on Santa Claus Lane. “I know it closed a little when it was raining and never reopened. Everyone is surprised because it was a thriving business.”

The restaurant was well-known for its scenic view of the beach, and its lawn and sandy play area where kids could run around between burgers and dessert.

“It seemed pretty busy, especially on weekends when moms and kids would play in the sandbox,” said Payden, who said the grill was normally a little busier than its neighbor Garden Market. “Santa Claus Beach is one of the most crowded because it’s not monitored as much, people can bring there dogs and drink a beer, not to mention it’s a popular surf spot.”

But with most of its seating outdoors, business relied heavily on the weather.

“We’ve had two weeks of rain; we don’t do well when it rains in Santa Claus Lane,” said Gary Nielsen, owner of the Barbecue Company. “The weather has been really hard this year because we didn’t have a real summer. We rely on summers and people to enjoy their food outside. I know it was an excruciating summer for them.”

Although the closure has resulted in more immediate business for the Garden Market and some nearby restaurants, Nielsen said it doesn’t bode well.

“It impacts everybody. It’s an indication of the economy and the forces playing against you in this business,” he said. “It’s a tenuous time all around. When the weather doesn’t cooperate, it’s just another blow to head.”

Bill Bennett, owner of the Palms Restaurant on Linden Avenue, said the business has been sold three times since its original ownership. Several years ago, he said, the property’s lease doubled or tripled, which is tough to sustain, especially in the winter time.

“That place was awesome. They improved the place and had good business,” Bennett said. “They catered and did all kinds of stuff to make it out there. … It’s a loss for everyone.”

A sign posted on The Beach Grill’s front door Tuesday informed the community it was going out of business, but some business owners heard rumors of its year-end closure.

“To our near and dear customers: The Beach Grill at Padaro regrets to inform you that we have decided to close our doors,” the sign reads. “All employees and management will miss serving you and your family. We hope the holidays were good to each and everyone, and hope that the new year brings happiness to all!”

Come January 2011, dogs will be allowed on restaurant patios in Santa Barbara County, which also could affect businesses near Santa Claus Beach. California allows pets on patios in 48 counties, and Santa Barbara was one of 10 that didn’t approved dog-friendly patios.

Although it remains uncertain whether there are plans for new ownership, the location of The Beach Grill implies a relatively quick reopening, Bennett said. Commercial real estate company Radius Group said it doesn’t have an active listing of the property and that it doesn’t yet know whether the property is for sale.

“I think it makes fewer people come to Santa Claus Lane period,” Nielsen said, “and that is never good.”

— Noozhawk staff writer Alex Kacik can be reached at akacik@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk or @NoozhawkNews. Become a fan of Noozhawk on Facebook.