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Another vote for Passports, in Gloucester. Great food (ah, popovers) and nice atmosphere.
Avoid the Ocean View Inn in Gloucester. Lovely little property, WAAAYYY overpriced mediocre food. I was married there a few years ago and loved it, but it's gotten steadily pricier and, uh..mediocre-er.
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My Place by the Sea
68 Bearskin Nck, Rockport, MA 01966
(978) 546-9667
http://myplacebythesea.com/