The best place for western style bread, cake, coffee and tea is Donutes which is located on a main road corner down the hill from McDonalds.
Penghu is known for many local delicacies. It offers top-notch fresh seafood although this tends to be quite expensive, in addition to other dishes, desserts, and snacks some of which are only available in Penghu.
Brown Sugar Sponge Cake (黑糖糕) can be ordered from several shops along the alley way down from the old well where you can also find Grass Jelly (仙草凍刨冰) and Pink Cactus Fruit Sorbet Ice Cream (仙人掌冰) which is widely available in Magong or on Wangan Island.
Spicy Red Oil Wontons (四川紅油抄手) can be found at 四川席炒手馬公市仁愛路25號 in Magong City Tel +886-6-9272899 Western food in Penghu is not only limited to McDonald’s. The five star Pescadores Hotel offers western style food as does the “He-tian” M Hotel which is located at No. 2, MínQuán Rd, Magong, Tel +886 6 926 3936 which is an easy walk from the main street.
The neighboring island of Qimei is known for two things: meat rice dumplings, and Vietnamese pork noodle soup (courtesy of the many Vietnamese mail-order brides living on the island). The meat rice dumplings are tasty; the Vietnamese pork noodle soup is better experienced in Vietnam.
Extremely fresh sea urchin can be easily found in various restaurants.
There are a few bars scattered around Magong mostly near the centre of the city.
Book ahead because hotels in Penghu can fill up fast in Summer. Hotels offer discounts in the off-season (Winter and early Spring).
Bayhouse Hostel Penghu (Chinese name: 澎湖北吉光背包客民宿) #1 ranking for Penghu hostels on TripAdvisor. The location is great, 1 minute to Shanshuei beach, 15mins to Chong-Cheng Rd. area (中正路商圈) for shopping, and 8 minutes to airport. Rooms are neat and clean, beds are comfy. Excellent English, very helpful and friendly staffs providing great services. Free airport pick up. They can help with booking all activities and tours, such as Squid fishing, Snorkeling, Watersports activities, or boat to see Twin-Heart Stone Weir at Cimei islands on south sea, and you get all travel information from them. You can contact them by Email at firstname.lastname@example.org or you can visit their website athttp://www.bayhouse.tw
Erkan B & B (Erkan Minsu) Erkan Village, Xiyu Island Tel. +886-6-998 4496 [www.phnet.com.tw/erkan] $2400NT You should be able to get a heavy discount during the off peak season which is any time outside of Summer. This B & B is in traditional Erkan courtyard houses.
One of the most beautiful bed & breakfasts, and situated right on the water, is the Villa Romana B&B 西衛海岸民宿 (www.villar.com.tw). It is ranked #1 (out of 170) for Penghu B&Bs and Inns on TripAdvisor. Very friendly, great service, and they have fully bilingual staff. 5 minutes from the city, 15 from the airport, and with fantastic 300 degree views of the ocean (it’s located at the end of a mini-penisula). Free airport pickup and drop-off. Great help with booking activities and tours. Email: email@example.com