One of my favorite places to eat in Rehoboth is the Dogfish Head Brewings on the avenue. They have a varied assortment of food and they brew their own beer which happens to be very good even for somebody like me who doesn't really like beer.
Here's their address information :
Dogfish Head Brewings & Eats
320 Rehoboth Ave, Rehoboth Beach - (302) 226-2739
They have a website with more information here:
http://www.www.dogfish.comGive it a try, it's worth the visit.