San Pedro La Laguna has a large variety of foods. There is local Guatemalan food, which is delicious and prepared by the locals using fresh ingredients from their food market located right in the center of town. While there are many foreign owned business that are also good, while visiting this indigenous town your $ is best spent while eating out at the local restaurants. Here are a few that prepare an excellent plate of food at a VERY reasonable price:
Rosa Linda Pacha Mama is owned by a widowed mother of 2, Maria. She is very traditional, sweet, and has years of experience with travelers. Most of her menu is what a local family would prepare themselves, so it gives you a good idea of their diet. Also everything is prepared fresh, and washed with purified water. Her prices have to be the best in town, with the large amount of food she gives! She located near the market, on the road down the hill on your way to the Santiago dock.
El Fondeadero is owned by a very nice local family, this restaurant is located right by the dock that takes you to Panajachel. With a great view of the lake, and the mountains they offer a menu with both local food, and "gringo" food as well. The place is beautifully decorated, and the servers are wonderful. The prices are reasonable considering the view, and the food is prepared fresh.
Flor de Cafe is another great local place to eat at. The menu is more catered to travelers, but they do keep it traditional to their own plates too. Once again the prices are great considering the amount of food, and the people are very kind.
Bistro Nuevo Sol is a charming little place with great pizzas, calzones and sandwiches on homemade bread. The owner is a photographer who shows his work on the walls along with work of a young local Tzutujil artist. They have live music whenever they can and a generally upbeat and friendly style.