Locally owned
RJ’s Barbecue (6–9:30 p.m. Wed., Fri., and Sun.), just before the bridge toward the old airport, serves up enormous portions of fresh fish, frequently snapper and tuna, thick steaks, and chicken. Go early as the small restaurant fills up fast and has been known to run out of food.
Also locally owned, Seven Seas Restaurant (tel. 504/425-7377, 8 a.m.–10 p.m., closed Sun. and Tues.), on the point across from Utila Water Sports [1], serves fresh seafood, good fried chicken, inexpensive baleadas, burgers, and delicious pork specials. A baleada will set you back US$0.60–1.30, while burgers and other meals run US$3–8.50.
On the third floor of the corner building at the municipal dock is locally owned La Pirata (tel. 504/425-3988, noon–10 p.m. daily), serving snacks and light meals (US$3–10) such as ceviche, chicken wings, and burgers, as well as bigger indulgences such as lobster and T-bone steaks (most meals US$6–13, except the lobster, which goes for US$26). There is a nice outdoor deck with nice views across the town and harbor.
Over in Sandy Bay, Texas transplants Bruce and Sharon specialize in smoked meats and crispy beer-battered seafood at their
Driftwood Café (11 a.m.–10 p.m. daily). Sandwiches and burgers run US$4–7, while seafood dishes and meats from the grill are US$7–10. The restaurant is built out over the water and offers a spectacular view with its meals. Alternatively, come here for a sunset drink—which after a couple shooters of Monkey Balls (vodka and housemade kahlua) may turn into a long and lovely evening at the bar.
Links:
[1] http://www.moon.com/destinations/honduras/the-bay-islands/utila/recreation/dive-shops