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The streets of downtown Funchal are lined with restaurants, where tables and chairs are laid out for al fresco dining during warm weather. Some spots have front and back entrances—avoid taking a table on the traffic-facing front street and instead head for the pedestrianized alleys, where the smell of grilled fish fills the air. Don't hesitate to join the locals in the small restaurants and snack bars spread all over the narrow backstreets (such as Rua da Carreira, Rua das Murças, Rua do Bispo, Rua Queimada de Cima, Rua Queimada de Baixo), where you will often find freshly prepared daily specials at extremely reasonable prices.
The best seats in this intimate restaurant are at the counter in front of the open kitchen, where you can watch the talented young chefs work their magic with local seafood. Though there are a couple of meat items on the menu, fish is the star, with complex yet delicious flavors and beautiful presentations. Both the small plates as well as the more substantial fish and rice dishes are perfect for sharing.
A café by day and bar by night, Barreirinha is popular with the locals no matter what time of day you visit. This is partly thanks to its menu of easy-to-eat items like burgers, sandwiches, burritos, and salads, and partly due to its location on a hillside with small outside tables on the terrace overlooking the ocean. Huge white parasols shade you from the Madeiran sun while local musicians keep the atmosphere lively.
This excellent coffee shop has a few branches across Funchal, including one in the Mercado dos Lavradores. After browsing the market's fruit, vegetable, fish, and flower stalls, take a seat at one of the cafe's small wooden tables and enjoy a bica (espresso) and a pastel de nata (custard tart). Step inside and you'll see row upon row of neatly presented cakes and tarts laid out in the chilled counters like gems in a jewelry box.
A classic spot to sit back and relax, this quaint tea shop specializes in various herbal and fruit teas, as well as coffees, cakes, and light lunches, that you can enjoy at outdoor tables facing a pretty square. You can pick up teas to take home, too.
Set inside a former salt warehouse, this fashionable restaurant with bare brick walls and a few outdoor tables serves immaculately presented contemporary renderings of Madeiran and Portuguese dishes like black scabbard fish with lime risotto and vegetables from the garden. À la carte lunch and dinner menus are a good deal.
This restaurant—wedged into a restored house in the hotel zone around the corner from the Cliff Bay Resort—has lavish tile work, hand-painted murals, and a bar that resembles one of Santana's thatch-roof dwellings. The menu is heavy on fresh seafood (trussed lobsters float in a tank by the door) and regional dishes (including espada served many ways, such as with tropical fruit or shrimp), as well as tornedo (meat on a skewer), the house specialty. If you're tired of Madeiran food, there are also pizzas.
In the tiled dining room of this well-established restaurant, exuberant floral arrangements, white-lace curtains, and green tablecloths rustle gently in the breeze of ceiling fans, while outdoor tables are set beneath a leafy trellis. The food is prepared with great care, and menus change every few months; starters feature seafood dishes like swordfish carpaccio and mains include pastas, grilled fish, and Chateaubriand.
Just across from the tourist office in the heart of Funchal, this restaurant-café has been open for business off and on since 1814; sit in the airy interior, capture one of the tables that flank the sidewalk, or—even better—bag a seat on the balcony. You can pop in for coffee, light local specialties, or British-style afternoon tea, or settle in for a feast of (somewhat pricey) Portuguese dishes.
This is one of Funchal's coolest café-bars; it's a great spot to hole up for a coffee, a cocktail, or even a full meal. Nestled behind the Museu de Arte Sacra, there's outdoor seating facing the delightful main square.
Traditional Portuguese cooking seems right at home amid the farmhouse decor at this casual spot on a narrow lane near The Vine Hotel. The dining room fills up with business executives enjoying a relaxing lunch and a mix of celebrating visitors and locals at dinner.
The inexpensive lunch specials at this streamlined dining room, just behind the municipal gardens, are popular with Funchal's businesspeople. Big portions of simple Madeiran cooking, such as espada, tuna, and grilled pork chops, are served with milho frito (corn fritters filled with garlicky collard greens). For something lighter, try the sopa de tomate e cebola com ovo (tomato and onion soup, garnished with a poached egg).
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