Old Town is mainly along King Street. Started from the metro stop and going until the river, the street is lined with lots and lots of shops and restaurants. Lots. These shops can range from fairly expensive to "eh, I can afford that". There are jewelry/accessory shops like Today's Cargo, a running shop, and some clothing stores (Gap Outlet, Banana Republic, Ross Dress for Less).
(There is also a free trolley that runs up and down King St.)
(There is also a free trolley that runs up and down King St.)
As far as where to eat, there are a number of sit down restaurants as well as informal places. Red Mei is pretty good for some Asian fusion, and Chiptole is on the corner of St Asaph and King.
I would, however, recommend Bread and Chocolate for two reasons. One is that the lunch I had was really good. I had initially bought a groupon for it, thinking I would use it for lunch, only to find out the groupon was only good towards baked goods. However, this must have been a common mistake (misleading title for the groupon I think), and they honored it anyway. So that is the second reason. I remember them being on Groupon Now! deals a lot, so look out for that.
Anyway, take a stroll down King St, browse the stores and maybe stop for some ice cream. You can stop in Pop's Ice Cream, Scoop Grill and Homemade Ice, or Ben and Jerry's. Or get some out of the freezer from the Walgreen's down the street. On Saturdays there is a farmer's market in the market square.
Oh yeah, and stop by Trader Joe's on the way home. Good stuff in there.
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