On Thursday, Meghan Markle and Prince Harry were spotted at a restaurant near their home in Montecito. The night before Meghan's 42nd birthday, the couple was joined at local Italian joint Tre Lune by their friend Matt Cohen, a tech executive and husband of Meghan’s longtime friend Heather Dorak. Meghan was photographed wearing a strapless dress from the brand Posse, while Harry wore a blue button up and khaki pants.

The outing came one day after the couple announced the 26 winners of $2 million in grants awarded by the Responsible Technology Youth Power Fund, which they helped found. In a video, the fund shared snippets of Meghan and Harry’s conversations with some of the winners, where they discussed the importance of policy to improve the internet and social media.

It’s now been more than three years since Meghan and Harry moved to a $14.5 million property in the small Santa Barbara community where they count Oprah Winfrey as one of their neighbors. A family insider told People that Meghan and Harry are enjoying their lives in California. “They seemed really happy together. Harry seems to be embracing this life he has with Meghan and knows it’s a very different one than he had before, of course,” said the insider. “Meghan does seem to run the household and make the decisions, but it’s not that he bends for her. It’s just a dynamic that works for them, and maybe one that he needs after everything he’s been through.”

A friend told the magazine that the couple prefers their celebrations for major events to be low-key. “They’re not into a big scene,” the source said. They prefer smaller group hangouts at home, karaoke—that sort of thing.” Sources in the town added that they are frequently spotted at the beach and chatting with other parents during school drop off.