In town, very few restaurants and bars exist, and there is only one operational surf shop. A vegetarian restaurant does have dj nights with salsa and reggae music, serving Caribbean cuisine and all you can eat rasta pasta. El Coco has reasonably priced rooms and restaurant right next to the waves.
Playa Dominical beach receives its fair share of swell, though it mostly closes out when it gets over 7 or 8 feet. I never saw more than 10 people in the water the 3 days I watched the surf. However, locals swear by long rides and perfect barrels. When Dominical closes out, go south to Dominicalito or Hermosa (yes, another one). Appropriately named Dominicalito is a cute, tiny little beach with soft playful waves. This is an excellent beginner beach aside from a few rocks in the shallows.