I'll give a hearty Second to the recommendation for Del Sur -- and you can make a very good meal with just the small salad and several Empanadas. It's right on Ave 5 (runs North-South parallel to the main drag, Melgar, 1 block back from the water), about 2 blocks south of the Plaza.
I stayed at Hotel Cozumel during the Cozumel Invasion in July, and though I really liked the Hotel (get a room overlooking the pool, Not the Ocean/Street -- it will be quieter, especially during Carnivale), I thought the AI food was terrible. Yes, I'm a bit of a food snob, and I really like the restaurants on Cozumel, which is why I have never before done the AI thing, though I understand that if you are bringing young children the AI can be pretty convenient for a family. Just don't plan on every meal there if you do decide to go the AI route. Unless you are used to tasteless, bland food served buffet style, with little or no variety, you'll be disappointed. And there are a LOT of very good restaurants to check out. Some of my favorites are as follows:
Sabores, a little family owned Loncheria on Ave. 5, south of the Plaza, very close to Del Sur but across the street. It's only open for lunch, a perfect place for a late lunch after diving. Great Chicken Enchiladas with Salsa Verde, a very good Chicken Mole, and lots of other choices. For 70 pesos (about $5.00), plus tip, you get chips & salsa, soup, entree, and Agua Fresca, a flvored drink - I really like the Jamaica (i think that's right), looks like red Koolaid, flavored with Hibiscus flowers. I try to go to Sabores for lunch at least once every trip.
Kinta - a pricier restaurant on Ave. 5 about two blocks north of the Plaza. Food, atmosphere, service are all just first rate. Same with Kondessa, another restaurant south of the Plaza owned by the same folks who own Kinta. Casa Mission. There are three (?) different Mission restaurants, but my favorite is Casa Mission, a big traditional Mexican house a ways back from the water -I think its on Ave 55 or 60, just off of the main transversal road (the one that runs straight back from the north side of the Plaza). I love siting out in the beautiful gardens for a traditional Mexican dinner. Watch the Salsa though, the one with a bit of Habanero will light your tongue on fire! I also really like Pancho's Backyard, behind the Los Cinco Soles store on Melgar about 4 or 5 blocks north of the Plaza. Pancho's has a Bananas Flambe dessert that is outstanding, and the skewered Tequila Shrimp are pretty good, too. And I like shopping at Los Cinco Soles - It's become sort of my own tradition to bring back a few pieces of Tallavera, the hand-painted, brightly colored Mexican stoneware from every trip; I think I have about 10 full place settings by now! For non-Mexican fare, try La Terraza, which has really good pasta dishes, as well as some pretty good seafood specials, and Guido's, an italian place with good Lasagna and wood-fired Pizza. Far too many good restaurants on Cozumel for me to list them all. For a real Gourmet experience, try Buccanos, its way north in the North Hotel Zone, only open for dinner on Friday and Saturday (I think), but a beautiful setting and the food is nothing short of amazing. It's expensive for Cozumel, but I think well worth it.
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BTW, if you haven't already found it, a website CozumelMyCozumel.com is a very good source of info on Cozumel. It has a long and informative listing of restaurants in different price ranges, and the Forums are a good source of info on a lot of things, like taxi rates, restaurant reviews, shopping (including how to get rebates on Mexican VAT taxes you pay when you buy stuff to take home; if you pay more that $100 for Tequila, Kahlua, Silver trinkets, TeeShirts, etc. at a participating store, you can get an immediate refund of 65% of the VAT taxes you pay IF you keep the paperwork and follow the rules), diving, other things to see and do on Cozumel and the mainland, etc. I highly recommend it. And DO NOT TRUST the reviews on TripAdvisor - those Reviews are easily manipulated, and are only occassionally reliable. Better that you find personal reviews here, on CozumelMyCozumel.com, on CozumelInsider.com, and other Blogs.
