Restaurants of choice:
Firestone: you can't lose with the ABC burger, the tri-tip sandwich, or the small steak cobb salad with vinaigrette dressing. Mmmm, and the fries.
Big Sky: My fave for breakfast. Everything's great, but particularly the journeycakes with swiss cheese and the beignets. For lunch, I love the japanese eggplant sandwich. Do check out their specials board for all meals.
Buona Tavola: We used to go for a light lunch of soup and salad. I love the lattughette, but my husband prefers the caesar. Their tapenade and bread are fantastic. If they have the rack of lamb special, get it. The gnocchi is also amazing, and we've become fond of the pasta dish with tons of different meats on it (fettucini al sugo di carni miste: slow braised chicken, duck, veal, and beef in an herbed meat sauce). My favorite dessert is the crema with caramel topping.
Farmer's Market: If you're in SLO on a Thursday evening, don't miss the Farmer's Market. Grab a meal at one of the many food stands, people watch, and listen to the great musicians that play on the side streets.
Linnaea's: Great coffee, great atmosphere. It's particularly good if you have a few minutes by yourself to relax. Their lunch options are super yummy. Try an iced coffee (complete with coffee ice cubes) or a white hot chocolate.
Gus's Grocery: THE place for sandwiches. Fantastic mojo potatoes, and great outdoor seating. It gets a little chaotic inside, so we usually send one or two folks in to place the order. Order a half sandwich. They're almost as big as the regular size, and quite a bit cheaper.
Muzio's: My favorite sandwich in the world: fresh mozzarella, tomatoes, basil on a fresh baguette, drizzled with balsamic vinegar. I haven't had one in ages because we always manage to try to go on Sundays when they're closed. There's not a lot of indoor seating, so order and take the sandwiches down to the mission (a block away) to eat overlooking the creek.
Mo's BBQ: We had our rehearsal dinner at Mo's (in its previous location). Their pulled pork sandwich topped with slaw is fantastic, and they've got some good beer on tap. The cornbread is tasty, too.
Windows on the Water (in Morro Bay): The food is pretty good, but I'd recommend going late in the evening and just getting dessert. Their homemade ice cream and sorbet are delicious (you get three small scoops, each a different flavor), and I once had an amazing blood orange semi-freddo (it tasted almost like a Push-Up pop).
For the beach town feel: hang out in Pismo. Definitely stop in at Splash Cafe for clam chowder and grilled cheese sandwiches. (The food is even better if you're sandy and salty.)
*We moved away from the area in 2003. Though we visit at least a couple times a year, I feel a bit behind on what has changed since we moved, and I'd love updates on what should be added to the list or taken off.