Santa Margarita town

Santa Margarita town is a small town with a few cafes on El Camino Real, some wineries, a sweet chapel, a playground, and pretty trees around houses along I Street.

There are some cute historic storefronts around the 22000 block of El Camino Real. Here you can find The Porch (closed Sunday and Monday), a spacious, counter-service cafe with big windows but greasy food and overly chewy pastries. On Saturdays at 5:30-7:30pm there is live music, and some great bands come to play. Check their website for the lineup. Ancient Peaks Winery (open every day) is another nice cafe on El Camino Real in an attractive, modern building. 
It's pleasant to stroll along I Street, a residential street with pretty trees such as redwoods around the houses. On Halloween, this is a particularly lovely place to be, with friendly neighbors and kids filling the street. There is a cute wooden historic church building at 22525 I Street, and a band sings folk songs outside on Halloween. A firetruck also comes to greet the kids on I Street.
Santa Margarita Library, also on I Street, has the old Santa Margarita Jail on its property, facing Murphy Ave.
Santa Margarita de Cortona Catholic Church, on H Street, is lovely inside, and feels very peaceful. It has a blue alcove at the altar, simple and colorful stained glass that is delightful, and flowers and statues outside. You can ask the friendly secretary to let you in to see the church and say thanks for your travels- call first to make sure she is there (Wed, Thurs 9-2).
Past the main strip on El Camino Real is a cute playground, at Santa Margarita Community Park. It has a wild west theme, with an imagination-inspiring wagon, sheriff photo stand-in, general goods store, and hotel. A twisty slide comes out of the hotel, and a wagon wheel climby leads up to the top floor of the general store. There is a large shaded picnic pavilion with many tables, plus baby swings and restrooms. In fall, the leaves are pretty.
Further out is Lake Santa Margarita, with a marina and a 6km out-and-back hike called Rocky Trail, which has boulders, deer, and great views of the lake (the trail starts by the gate, and there is a brown sign pointing to it). 
The Cuesta Grade, the steep part of Highway 101 between San Luis Obispo and Santa Margarita is a really dangerous stretch of road, with trucks going very fast down the hill, crossing the lane lines next to you, while people tailgate you at high speed so that you can't slow down to save your life! 
Only a few minutes north of Santa Margarita on the freeway is another fairly small town called Atascadero. Here, the highlight for me is Bramble Pies, and the sunken gardens which you can walk to from Bramble Pies. Atascadero also has a really good hike called Stadium Park Hike.
One hour inland from Santa Margarita, on Highway 58, is Carrizo Plain National Monument, a barren area with beautiful flowers in springtime during superblooms.

Directions

Santa Margarita is located near the 101 Freeway, just north of San Luis Obispo. The main street is El Camino Real, and a pretty back street with houses is I Street. 
The Porch Cafe, 22322 El Camino Real, Santa Margarita, CA 93453. Open Tues-Sat 8-8.

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