Penny's Palapa
Nanaimo Harbour, near the Protection Connection ferry.
(#10 Wharf Street H Dock)
(250) 753-2150
Palapa translates into something like a "hut", I'm told. Penny's hut and patio float down at the Harbour, serving good food in a great little spot. Sitting a meter from the ocean, separated from the water only by a little wooden fence, it's easy to remember that, if you're not from an oceanside town already, Nanaimo has something of the exotic about it.
Penny's Palapa serves up great nachos, with real toppings like beans and fresh cilantro. I recommend the little restaurant for people walking the waterfront, or for those who would dine out on their office break downtown. It's fully licensed.