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There are loads of little restaurants and bars in Cavtat. All the menus have loads of fish dishes, veal, pastas and pizzas. Restaurant Damizana is a recommended choice, located in the main square and offering seating outside. Walk further alonng the front to the monastery, and you will find Taverna Galija. Here it is quieter, the only music is from a live pianist (mainly golden oldies) and excellent food.
Just past Hotel Cavtat on the way to the Iberostar Hotel & Hotel Argosy, the restaurants are much cheaper and frequented by locals.
For fine dining there is the new Restaurant Major - but it is out of town and requires a taxi. The restaurant also offers transfers free of charge, you just need to let them know when would you like to come, and where would you like to be picked up - and they arrange transfer for you.