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Check out the Old YeShanghai restaurant at JinJiang hotel for good Shanghainese food.
Blue Frog and Moon River Diner (various locations throughout the city) are favorites among expatriate families for good old American food. They have play areas and hand out crayons to keep the kids occupied. In addition, you'll find plenty of McDonald's, Pizza Hut, and KFC outlets to satisfy your kids' cravings for fast food.