It is no longer Lion On The Beach, it's a new restaurant in the same spot now called Stone Lion. Completely renovated and brand new. I live the area and pretty much stayed away from the old place as it was pretty dingy and unkempt. I got the feeling the old establishment was satisfied to do the minimum and just coast. The new place is very clean and inviting and it's obvious that ownership and the staff want the place to be a big success. You can feel the entrepreneurial energy of everyone wanting things to be perfect - pretty nice to see.
I guess you would classify the Stone Lion as a gastro-pub because there appears to be a real focus on chef style food. The beer prices are OK at $6 and change for a craft pint and the food is very reasonable based upon what you get. One note is that they don't take Amex at this time, which is unfortunate.
So far I am very pleased and I hope Stone Lion is successful. Nice to see independent new businesses in the beach who are working hard to add to our community experience. Maybe there is hope for Queen East yet as it is turning into a non-stop row of McCondo's and franchise restaurants.