ZooLa
"Laid back" in Hebrew, offers one of the most comfortable places to lounge around with your friends while you enjoy good food and drink at reasonable prices. Has some Israeli items, including falafel, on the menu but the coffee is locally-grown and doesn't include the ground cardamom that you'll find in some middle eastern restaurants.
Nick's Place
It's by the panajachel dock. probably the most popular place in town due to its great location. meals are reasonably priced!
The Buddha:
(http://www.thebuddhaguate...) located in san pedro's hip, 'otro lado' a mere 5 minute walk from the main dock. extremely good asian & gourmet local dishes at very reasonable prices in an astoundingly beautiful setting. it's a three story bar, restaurant, lounge, cinema & cabaret with an amazing fusion of local and faraway exotic. great place for traveler's to mingle with each other & locals over a game of pool.
Streetfood
Best and cheapest food in town, roasted sausages and chicken with beans, guacamole and tortillas.
Cafe Luna Azul
A little bit west of the panajachel dock. great lakeside location with a good place for swimming and tanning. try the chocolate fudge cake!
Lole's Place
Is open for breakfast and lunch only, they have great tasting food for only 15 - 20q a plate. just a few meters away from the main crossroads near the pana dock, under the gym.
Jarachik:
Jarachik is a hostel and a restaurant. good food here. every night weather permitting there is a bonfire in the garden / restaurant area. great food. jarachik is on the path between the pana and the santiago docks.
El Otho Hollo
Food from Israel, very nice and affordable food.
Fata Morgana
Some of the best if not the best coffee in town, plus an amazing selection of homemade foccacia and pizza including ample vegetarian/vegan selections. cool staff and friendly vibe. just a few meters away from the main crossroads near the pana dock, in front of en vivo music club.
Humus-ya
The best humus and falafel in town, they also have other mediterranean food. cool staff and friendly vibe. just a few meters away from the main crossroads near the pana dock, across from the gym.
Le Jardin:
(http://lejardindessaveurs...) run by french expats, this place has one of the coolest patios you'll ever see, with a variety of seating options from a candlelit table to a big group table with pillows for seats. serves delicious french and italian food. they use local ingredients and make everything in-house. pretty expensive for the town, but you can get an amazing meal for under $10 ~q83 per person.