The festival is going to have lots of festival type food, but there are a few places in Keene that have great food. It depends on what you are looking for (and price range) as to what I would recommend.
*"Fritz":http://www.43places.com/places/view/1936841/fritz-keene-new-hampshire – casual and right on Main Street
*"Blue Trout":http://www.43places.com/places/view/2005907/blue-trout-grill-keene-new-hampshire – also on Main – a little more upscale – good bar
*"Lucas":http://www.lucascafe.com/ – way more upscale – you might need reservations.
*"21":http://www.43places.com/places/view/1157105/twenty-one-bar-grill-keene-new-hampshire – basically a bar but great martinis and mussels and I love the sweet potato fries – just off Main.
If you want to go off the beaten path, Walpole is a cute little town about 20 minutes away and Burdicks has the best hot chocolate you will ever have.
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