In addition to restaurants, wineries and tasting rooms, movie theaters, zoos and museums, cardrooms and family entertainment centers must also close their indoor operations effective immediately.
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Bars must keep all of their operations closed.
Fresno, Tulare, Kings and Merced counties, along with 15 others across the state, have been on the state's watch list over three days. Counties are placed on the list if they see an increase in hospitalizations, community spread, or limited hospital capacity over the last 14 days.
RELATED: Coronavirus watch list: 19 California counties where COVID-19 is getting worse
Ahead of what Newsom called a "concerning" Fourth of July weekend, he urged Californians to refrain from inviting people out of their immediate households.
Newsom also recommended that Fresno, Tulare, Kings and Merced, and others on the watch list, cancel their Fourth of July fireworks shows set for this weekend.
"We were able to bend the curve in the state of California, and we will bend the curve again," Newsom said.
The governor said the state would focus on enforcing these new restrictions through work code requirements and on a fiscal level.
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RELATED: Fresno businesses fear going out of business if California is shut down again
He said the California Highway Patrol, Alcoholic Beverage Control and CalOSHA would be the agencies in charge of getting businesses in compliance with the changes.
The new orders from the state come amid California's rising coronavirus case total.
The state saw 5,898 new cases overnight, and its positivity rate was up to 6%.
Hospitalization and ICU rates have continued to increase dramatically over the last two weeks. Newsom said those who feel the state is past the virus were mistaken, and the spread rate continues to be a cause for concern.
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