Ban Krut is all about the seafood. While there's some very good and reasonably priced fare to be had, be warned that most places do not have English signage, though they often will whip out an English menu.
The best seafood we had was at the northernmost bar one beach restaurant called Raad Naa Seafood. It's very simple, with a bunch of bamboo shacks looking out over the beach, but the seafood is excellent and affordable. Free bananas, too!
Also on the beach, heading north from the railway station road, you'll reach a large seafood restaurant with concrete table settings on the sand. The script is in Thai, but just look for the big blue 1. The baked prawns with glass noodles are very good and they stay open late (by Ban Krut standards, so 22:00).
If you're craving something Western, the very friendly, comfortable and popular Kasama Pizza should be your first stop. On the railway road a short walk from the beach, they do very good pizza and a range of good Thai and Western fare, with free WiFi too.
Another option is JJ's Hamburgers on the off-beach side of the road down beside Sala Thai. They do simple burgers and other Western dishes along with international breakfasts. They also have beachside seating, which is more comfortable than in the restaurant itself.
Most of the guesthouses and resorts have restaurants, but we found Sisina Resort to be one of the best, with authentic Thai fare delivered with a smile. There's no ocean view, but if you can't face another squid salad head here for some very good regional Thai dishes. The restaurant at Suan Bankrut Beach Resort is also quite good -- it doesn't look like much, but the food is good.
While we missed it, another Travelfish member reported on a Saturday farmers market which is held in a field just off the railway road to the beach. As well as the usual delicious staples they apparently sold freshly cooked boar -- and it was good. So if you're in Ban Krut of a Saturday, check it out.
If you're looking for a sundowner, any of Ban Krut's beach restaurants will happily ply you with chilled drinks -- we liked The Beach, near Keree Waree (a long walk south from the railway road). There's also a little sala beside the shop opposite Siripong where travellers staying there may grab a beer or two. Ban Krut goes to bed early. Very early.