"Let's eat at this restaurant."
Translation:이 식당에서 식사합시다.
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Although both verbs are technically correct, 씩사하다 is more formal than 먹다. So 씩사하다 is a better selection for the speech level--formal polite (합쇼체). In English, the best equivalent that I can think of is "eat" versus "dine."
씩사 also means "meal" or "repast." In a way, you could think of 씩사하다 as "to have a meal," which also sounds more refined than "to eat."
Is the particle (에서) for when you are doing something at that place e.g eating and then you use (에) for when your not e.g your going TO that place?
Sort of. My understanding is that "에서" is for when you are doing something at a place or when taking about a route that starts at a place (traveling from there). "에", however, is for going to a place but also when generically referring to a location ("This thing is over there." = "이것이 저기에 있어요")