I can also recommend Auberge du Lyonnais, it is a very good seafood restaurant. If you are looking for just ordinary Savoyard food, then Le Lilas Rose, just a few steps ahead on the canal, is a very sweet, unpretentious place, with good raclette and plat du jour.
Then have coffee and sweets in Au Péché Mignon, 9 Rue Jean-Jacques Rousseau.
As for hotels, if you are travelling by car and do not mind not staying a bit outside Annecy itself, this place is a real luxury treat:
http://www.chateau-des-avenieres.com/fr/index.php Also on the splurge side is Marc Veyrat:
http://www.marcveyrat.fr/