Hello MegBex, not sure on any bars up that end were you are, but if you go into the old town in the Square you may find that to have a drink in the bars here will be double the price of one round the courner of the main square.
As for restaurants one you could have a look at is one called Caravela it on the main road from the strip to the old town on the left, some of the best food we had was in here and it is not to dear, just past it is a very nice cake shop called Oura Dose all the locals use it and they have cakes to die for.
In the old town you could look out for two more we found to be nice and again not to pricey, O Tunnel just up some steps on the left before you go through the tunnel to the beach on the Rue 5 De Outubro, near the Tourist Office and another one on the same road but going the other way is one called Restaurante "O Catraio" we only found this one this year but went there three times it is only a small place but again one the locals use some of the prices are, T bone steak 13.50 Fillet steak 10.00 Pork chops 5.50 Chichen piri piri 5.00 soup 1.50 Grilled salmon 8.00 Swordfish 10.00 these prices are all in euros and they do have a small childrens menu and last of all if you do go throuh the tunnel to get to the beach don't have a meal in the restaurant on your right we had our duffer in here and the toilets were dirty and smell. as a bit of a help me and the wife eat out every night and had a starter/main/bottle of wine ( most house wine is about 7.00) and water and most times it came to about 30.00 euros.
Hope this is a bit of a help,
Dave.