Jalisco's
1701 highway 35 n, tel: +1 361-727-0555. very good, authentic mexican food, lunch around $8 per person.
Big Fisherman
Fish.
Java Bay Caffè
302 s. austin street, tel: +1 361-727-0909, (http://www.javabaycaffe.com/). coffee shop, serving breakfast and lunch, good coffee drinks. su-th:6am-9pm, f-sa: 6am-12am.
Croaker's
3817 highway 35 s, tel: +1 361-729-8888. south of the main town, take the right fork as leaving town. fantastic food, reasonably priced. horrible service, expect to spend 2 hours for lunch if they're at all busy. lunch around $12 per person.
The Boiling Pot
201 s fulton beach rd, tel: +1 361-729-6972. along fulton beach, cajun style fresh seafood, served dumped on butchers paper on your table. extremely good food and service. it looks pretty questionable from the outside, but that's all for appearances. $15 per person for the cajun combo.
Also see nearby Fulton, which has some really good restaurants.