Although I have never been to Qingdao, I am certain there are a number of good places to eat and I have heard there is a good expat community there. As for Chinese places... Well most of what I learned in Beijing was through friends, trial and error and That's Beijing.

This might be helpful for a start..

http://www.qingdaoexpat.com/

I am sure you buy cereal at Carrefour or other shops like that, though since its imported, it will not be cheap.