We (from the UK)are travelling in August from Yosemite via Santa Cruz to Santa Monica, on Route 1, with 3 teens. Which stop would be better - Cambria or Santa Cruz? And which hotels (with pool) would you recommend?

I much prefer Cambria, but not sure if that would be the case for teenagers. I spend a lot of time on the Central Coast and Pismo Beach is my least favorite of the beach areas.

Cambria is such a neat town. Offers a rocky beach and forest areas. There's also quite a few good restaurants. With kids, I'd highly recommend heading to the Main Street Grill for burgers and barbecued ribs and chicken. It's not fancy, but definitely one of the most popular places in town.

San Luis Obispo is not right on the beach, but would actually be a good city for a family with teens. It's a nice college town and caters to teens and young adults. Restaurants, shopping, movie theaters, bookstores, etc.

Morro Bay is also a good choice for a beach community. Small town, but popular. They have the Embarcadero which features restaurants and shopping. Be sure to hit the Garden Gallery if you enjoy gardening - great nursery!
There's an old style big theater in Morro Bay showing the latest movies. As for family food, I'd recommend Pizza Port or Julio's for good casual Mexican food.

I have traveled the Central Coast several times. When I'm with my mother, I enjoy the Cambria area but when I'm with my teens, we stay in Pismo Beach. I felt very comfortable letting the teens walk the streets even in the evenings. They went out for ice cream, bowled and played pool at a family billard center. During the day, they took the hummer ride and rented beach bikes. We stayed at the Edgewater Beach Hotel (not classy but clean) which is right on the beach. I choose this hotel as it had suites to allow me to have my own room while the kids enjoyed their own space. We had a mini kitchen with refrigerator, stove-oven and mirowave. They have a pool and free continental breakfast. Not my ideal resort vacation but certainly a spot to please the kids. Santa Cruz would be another option for teen fun as they have the beach Boardwalk.