If you don't mind riding over to Pensacola, go to A & E Pharmacy - yes, it is a drug store, but over in the craft side of the store, there's several thousand bolts of quilt fabrics from numerous manufacturers! (Including a wall of batiks!) Don't go if you're in a hurry - there's lots to look at and you'll need time to take it all in!
As far as places to eat, you can always try Doc's, Original Oyster House or the Shrimp Basket.