Adobe is on everyone's list for San Pedro, and rightly so. It's a sizeable space, with wooden tables and benches, an earthen floor, a huge dancing (unprotected, not toddler-friendly) firepit. Diners can choose from typical Chilean dishes including vast humitas (like tamales) or any of a host of meats served "a lo pobre" (with french fries and fried eggs on top), in this semi-outdoor restaurant. Pastas and pizzas also appear on the menu, though the Chilean food is probably more of a highlight.
Since almost no hotels in San Pedro serve breakfast, you'll have to go out for your morning sustenance, and you could do worse than Adobe. Offerings include the typical "paila de huevos" (cooked eggs) with bread.
The restaurant has features live music after 9:00 and serves dinner until 11:30 if the place is still hopping. You'll close it down if you stay until 1:00 AM, closing time. Luckily the town is small enough to walk home pretty much no matter where you're staying.