Food and drink is easy to buy. Just loot and sell everything you possibly can. Focus on humanoids(orcs, kobolds, gnolls, etc) or skeletons; they have a chance to drop cloth armor, rusty weapons, and the occasional bag. You might be able to snag a cracked staff that vendors for around 1p each. Skeletons will drop bone chips that you can sell to other players for 10p a stack usually.
As far as I know, stick with buying the cheapest food the merchant sells since it all lasts the same amount of time regardless of if its a snack/meal/hearty meal. Someone more knowledgeable should correct me if I'm wrong.
If you are really wanting to make money over levels, your best bet is to kill orcs in Greater Faydark/Crushbone/East Commons and sell the belts they drop to other players. Crushbone belts usually go for about 2p a pop, while the deathfist belts from the commons go for around 5p each. It's a good way to make some start up cash for yourself.
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