Whereabouts on the Algarve are you visiting as prices differ in resorts?

We are thinking about visiting the Albufeira area possibly Olhos D'Agua.

I don't know very much about the restaurants & bars in Olhos d Agua area, but if you stick to the restaurants that advertise plate of the day "Prato do Dia" (mainly Portuguese) you will find good value for money. Lots of these restaurants do a tourist menu, approx 5/6euros at lunch & 9/10 euros at dinner which consist of 3 courses and some include a drink and are excellent. Average price for a large beer is 2.50 euros, a short & mixer 4 euros, glass of wine 2 euros, but many places have happy hour so you just have to search them out by looking at the boards outside the places. I believe "La Cigale" on the beach in Olhos is a good restaurant but expensive. "Tivertinos" local Portuguese on the top main road just out of the village going towards Albufeira is nice & has reasonable prices.
We frequence quite a few local Portuguese restaurants around Albufeira area and can get a good 3 course meal with wine for 9 euros each. I am sure you will find quite a few in and around Olhos d Agua, happy hunting, enjoy, all part of the holiday experience.

I know nothing at all about prices in Olhos d Agua, we only passed through the area. However, I must say that on our recent visit to Albufeira hubby and I were very pleasantly surprised at prices of food/drink. Just about every other bar/restaurant had happy hours (that lasted maybe 4 hours) on drinks with large beers being 1.50 euros. Where we stayed in Forte do Vale the happy hour was between 5 - 9m. Small beer 1 euro, glass of wine 1 euro, large beer 1.50. Lots of restaurants offering dinner for under 10 euros. We tried lots of different places to eat and some were more expensive but we had no complaints at all. If you are buying a short it is a very generous measure compared to what we pay at home so definately good value there.

We used taxis very regularly coming back in the evening and again agreed the cost of taxis is SO reasonable. All in all we absolutely loved our stay in Albufeira - 2 happy travellers!!

Usual tip - avoid the tourist traps actually on The Strip and in the Old Town Square, hunt around a bit and as the others say, good value to be had...