Squid, shrimp(I prefer shrimp, its easier!) krill, clam, any white fish chunks, etc...
They will eat just about anything. In nature, they eat crustations so try to toss in some ghost shrimp every once in a while. This will keep the hunting instinct alive!
Tank mates: anything that cannot fit in its mouth. Dont get another similar bodied, similar sized wrasse. eg. broomtail wrasse. They will fight to the death right away.
Good choice, good luck!