Im not going to name bars or restaurants, but with the help from my tips you should be able to get some good value meals on the island, without being taken advantage of.
Avoid the Old Town (Zona Velha)
Here you have many restaurants all trying to drag you in for business, Food and drinks are over priced.
Once you are out of the main tourist areas and into the country, the the problems are not so bad, the prices are cheaper and good home cooking.
Funchal is a tourist hotspot, prices are going to be higher, but if you go to the back streets and find smaller places, normally with a board outside displaying "Prato da Dia" (plate of the day) you know what your paying normally between 5 - 7 euros and often includes a soft drink or small beer.
Be careful though of other areas outside Funchal, The Nuns Valley (Curral das Freires) is Known for being expensive so make sure you check prices first. Ribeira Brava is another place.
Always check prices, even coffee, if you pay more than say €1.30 for a white coffee (Chinesa) then walk away as you will be ripped off for everything else you order.
Most places where they have staff outside trying to get you in i would personally avoid.
Just remember to check prices, dont feel forced into any restaurant, ask for the price of a coffee. For a main evening meal with starter or dessert, and a bottle of house wine, you should look at no more than 20 euros per head.
I personally would expect to pay........
White Coffee - 0.80 - 1.30
Small Beer - 0.80 - 1.20
Prego (steak Sandwich) - 3.00 - 4.00
Main meal- Steak or Fish - 9.00 - 12.00
Bottle House Wine - 8.00 - 12.00
Down by the Marina is another good place to avoid, here you will also find lots of time-share touts....
Be sure to check my google map from the home page with places i reccommend to eat, as well as my eating out pages.
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