Many Rehoboth local folks have breakfast at the Robin Hood,a couple blocks from the beach.Its an unimpressive looking place with very good diner food.
There’s also always a large crowd at the Crystal Restaurant,also on Rehoboth Ave,but at the other end out by the highway.I have never eaten there but reviews are positive.
I always suggest Louie’s pizza in the beach block,which has the best pizza in the county.Always get a whole pizza there,it only takes 10 minutes and its much better than getting a reheated "slice".Small one with one topping only costs 5.50.
The Big Fish Grill on Rt 1 is the preferred place for seafood,with a huge blackboard full of daily "specials".They do not serve lunch,they open around 3 PM.Be prepared to wait an hour or so at most times.No reservations taken.Prices moderate (15-25).excellent value.
The 1776 Steak House a couple miles north on Rt 1 is my favorite high-dollar steak place.Reservations are suggested.Ask for the specials,sometimes they "forget" to tell you about them.
Big-City quality prime beef.25-50 $$.