I would never take a big group to Blue Water Grill, especially with kids.

El Divino at Banana Beach has a great menu which includes burgers, quesadillas and other stuff kids would like, as well as great choices for adults and a wonderful bar, Jambel's Jerk Pit; Fido's is fun and has a variety, although you lose a bit in quality, if you want a bit more upscale try Casa Picasso - they have an expansive menu and would probably be willing to make items not on the menu for the kids - another place with a great bar.