There are a lot of cafes and restaurants around the Place de la Liberation and along the foreshore. Small snacks like Spanish churros which are donuts traditionally eaten for breakfast but available all day. The specialty of course are fish dishes as in fried or even paellas. There is definitely a choice of both traditional Moroccan and Spanish dishes available.
Place de la Liberation (Liberty Square, former Plaza de Espagna, the name still used by locals) is a central point of Larache. There are arcades around the square with a few simple, local restaurants and coffee shops. It was nothing fancy but charming place to watch the people.
Well, Larache is said to be a very good place to taste excellent food, either the Moroccan cuisine and some Spanish food. Larache as an Atlantic city offers a lot for lovers of sea food as well. I saw a few, a bit touristy, seafood restaurants in Cite Neuvelle.
Favorite Dish: I had only a cup of coffee and juice from fresh oranges in a coffee shop. Both were served in a funny long glasses, cheap but OK.