A growing number of restaurants and snack bars exist along Atamu Tekena and Te Pito o Te Henua. The seafood is good, although the local lobsters (langostas) have become scarce (and expensive) through overharvesting. Avoid nanue (rudderfish), an oily fish with a pungent taste much appreciated by the Rapanui but distasteful to the Western palate. Tuna (kahi) is a safer fish to order, and be sure to try ceviche de pescado, raw tuna marinated with lemon juice. Also watch for tasty local pastries called empanadas. A completo is a hot dog. Be wary of restaurants with prices quoted only in dollars!
A place on Atamu Tekena directly opposite the market (no sign) is perfect for a breakfast of sopaipillas (pancakes) with coffee for under a dollar. For lunch have a skewer of barbecued meat or a large ensalada poroto verde salad. You can eat on the terrace.
Te Moana on Atamu Tekena has a nice atmosphere. The food is delicious and there are fine wines from the mainland.
A few blocks south on Atamu Tekena at the corner of Sebastián Englert is the Aloha Pub (closed Monday) with a coconut tree growing through the porch. It's more of a late-night drinking place than a restaurant, but the light meals are fair value. The ceviche here is especially good.
Across Atamu Tekena and just down the hill from the Aloha Pub is Ariki o te Pana or The Queen of Empanadas. As usual there's no sign, but the empanadas made from cheese or tuna are really huge.
Easter Island's most expensive eatery by far is Restaurant La Taverne Du Pêcheur (closed Sunday), near the small boat harbor at Caleta Hanga Roa with spaghetti, fish, steaks, and lobster. The food is good but the portions are small, the service poor, and there's no view.
Just up from La Taverne Du Pêcheur, Au Bout du Monde is a fine new Belgian-Rapanui restaurant which serves the food without the attitude. The staff does their very best.
The local tap water piped down from Rano Kao has a high magnesium content and may be a little brown, but it's quite safe to drink. Otherwise beer is available everywhere. Try the Chilean pisco (brandy) cocktails made from grapes. Liquor is sold cheaply in the local supermarkets.
A supermarket (closed Sunday) is on Atamu Tekena in the center of town. The Municipal Market (closed Sunday) or feria municipal on Atamu Tekena sells more handicrafts than food, and the best vegetables are sold out of the back of pickup trucks across the street. The snack bar in the market has coffee and sandwiches for under a dollar.