This is a family run restaurant and part of the hotel I had the pleasure of staying in.
The restaurant is located in the shaded courtyard of the hotel and the atmosphere is extremely pleasant. Being family run the service and quality of food is excellent (authentic home cooked Italian at its best), and very reasonably priced as is the wine (carafe of local house wine was about 1.5€)
I tried a few other restaurants in Forio, but they really did not compare favourably at all.
The menu is fairly extensive, but do try the "Paccheri Cozze e Pecorino", it is out of this world.