Shanghai has a dizzying array of restaurants, with nearly all cuisines and price ranges well represented.  The best bet is to pick up a free copy of expatriate magazines That's Shanghai or City Weekend, and browse the restaurant reviews, listings, and advertisements inside.  Sanitary conditions in Shanghai restaurants that most tourists visit are high and you needn't worry about getting sick.  In general, hotel restaurants, like in most other cities worldwide, are overpriced and underwhelming in their offerings.  So don't be shy about venturing out to try something new.