Locals usually go to have a drink or eat something in Guilhermina Restaurant in the hostel. The drinks are great and the appetizers are worth a try. The atmosphere is also great and the restaurant is kind of a kept secret, never crowded.
When visiting Rio, if you stay in this hostel, you will meet some locals in the restaurant. It is in the middle of Botafogo, really well located, but in a quiet street. The crew is very nice and the hostel is really clean.
Guilhermina Restaurant, with it´s few but great appetizers options.