Cobalt is good, has a nice view, and a fish tank the kids will like to look at. Our favorite thing to do is get some steamed shrimp and a key lime pie at Perdido Bay Seafood (under the bridge over Lost Key). Hit a Publix for some good beer, enjoy a balcony evening. Then you can take the kids to the pool or sand crabbing at night. They'll usually have fresh shucked oysters in containers, too. Render the fat out of some bacon, wrap the oysters and broil. Fresh lump on Tuesdays and Fridays makes some good crab cakes. Just get the Old Bay mix, they should have it there. We use sour cream instead of mayo.
The best eating at the beach is done in your condo with something fresh you got from Perdido Bay Seafood. They always seem to have great snapper, and you might get lucky with a whole flounder you can score, jam with some lemon wedges, broil, and pick clean.
There's putt putt all over the place for the little ones, but they may be a little young still. Just go to one of those souvenir shops, get some sand castle stuff and pool toys and let them loose.
The Pensacola Blue Wahoos will be at home next week, too. They just built a new park on the bay that is pretty sweet. Close to Palfox pier and Palafox St. which has some good places to eat. Try Hopjacks. Decent pizza joint with a beer selection that will make you weep. And you can get growlers to go. Yeah, you're staying in Gulf Shores, but in my opinion, going into Pensacola and enjoying the less crowded beaches in Perdido Key is the way to go. Enjoy the busy beaches with the kids, it'll be more fun for them, but sneak east for food and fun.