Of the several restaurants in the center of town, Rincón Danlidense (7 a.m.–9 p.m. Tues.–Sun.) is about the best. A block south from the museo, the restaurant offers a large menu of reasonably priced Honduran standards, like anafre (bean-dip appetizer, US$4), plato típico (US$4), or tacos catrachos (US$2.50). Full meals with chicken, pork, or beef with sides go for US$5–6.
Pepylu’s (tel. 504/763-2103, 7 a.m.–10 p.m. daily), one block north of the church, has similar meals for similar prices, with tables in a quiet indoor courtyard.
Popular with locals, Paseo Pupusería, located across from the gas station, is a pleasant place for the namesake pupusas, as well as beef and pinchos.
Restaurante Kuan Ming (tel. 504/763-2105, 9 a.m.–10 p.m. daily), two blocks from the square on Calle Canal, serves decent Cantonese food (or the Honduran version thereof, at least) for US$3–5 per meal.
On the main avenue between the square and the bus terminal is Pollos La Cesta (8 a.m.–4 p.m. and 5–11 p.m. daily), serving tasty chicken in a fast food environment.
There’s an outpost of Espresso Americano three blocks west from the park. A popular street snack in Danlí [1] is alboroto or sopapo, sorghum that is toasted and popped like popcorn and served with honey.
A good spot to pick up groceries is at Despensa Familiar, a block north of the church.
Links:
[1] http://www.moon.com/destinations/honduras/southern-honduras/department-el-paraiso/danli