Across the parking lot from the Best Western Canyon de Chelly Inn, this sun-filled, airy dining room with cream-color walls, large windows, a long granite counter, and a mix of attractive booths and tables has a cheerier feel than any other restaurant in town. The kitchen turns out pretty tasty American, Southwestern, and Chinese food, too. Specialties include posole stew (a Mexican dish made with pork), chicken-fried steak, and sheepherder's sandwiches (consisting of
a tortilla or fry bread stuffed with steak, Swiss cheese, grilled onions, chiles, and tomatoes). A small kiosk by the front door sells gifts and jewelry.