Any of the restaurants in the main square of this remarkably beautiful city are great. They all serve fresh seafood locally caught. They are small, family-run restaurants, and the ambience is classic Italian. The local delicacy is anchovies. I normally do not like them, but here, just like everything else, they are amazing. Do not leave this little city without trying them.
Normally I am a red wine drinker, but white is the wine of choice here. They have grown it on the surrounding hills for centuries and have perfected both the sweet and dry varieties. Use it to complement any seafood, or buy a bottle and take it up the hill and just enjoy the view over a great bottle.