Everyone has a different ideas what walking distance is, so instead here is the Negril map so you can decide for yourself.
http://www.maherconsulting.com/negri...p2011final.pdf
But I would say that 3 Dives definitely is, since just next door.
I tend toward the more low-budget authentic Jamaican cooking style places - I can't offer opinion on nearby higher-end restaurants, if that's your style.
Other places like that I can recommend just a little farther walk are Sips-n-Bites, and Eddie's De Bar to the south - and PeeWee's and No Limit Bar to the north.
Going a little farther south are a few other places I really like - Jam-Can, Shark's Restaurant (both on the map), and Salt-n-Pepper's (not on the map, but near the corner of Seastar Lane).
Another cool, unique spot is not on the map, but is C&D Country & Western Bar - it is right next door to Jennys Cakes (is on the map) which is also a recommended restaurant.
There are convenience stores within 1KM either direction - Seastick's Grocery and L&M Grocery to the north, and Foster's Grocery to the south.
For a true grocery store like back home, you will have to go downtown to Hi-Lo or Value Master.
If you want really budget prices on a few limited things - soft drinks, beer, rum, liquor, and some mixers - the ChinaMan shop, downtown next to Burger King, is where the locals go.
Route taxis can get you to either one, so don't have to take a regular taxi and can save quite a bit that way.
I can't think of an ATM on the West End, but the closest cambio would be Banmark Cambio/Bike Rental, which also has good rate for travelers checks - a little to the south.
There is an ATM next to the Hi-Lo, and also 2 at the bank in the town center - you can get either $US or $JA at the bank ATMs, I'm not sure of the Hi-Lo's ATM, but there is a cambio right in the Hi-Lo.
The Red Dragon is not in the area - is back in the Red Ground neighborhood up the hill a little ways from the town center.
Their pork is definitely worth the trip and any taxi driver will know it. The other name you were thinking is Ragabones, but all the signs on it now say Red Dragon.
Buy an extra order and bring it back for the staff at the hotel to snack on - you'll be an instant friend.
Hope these suggestions help. Have fun!
