Dear MM and others
I have been in Madrid only 2 days and I am in love! With the city, I mean. I have been enjoying all the people watching and taking in the few sights I've seen in only 2 days. But I have to say that I'm in a deep state of shock. I'm completely lost in terms of where to eat and what would be considered a good value. I am really floored by what I've been paying for a meal. Am I just not going to the correct places? I'm from San Diego area and things are kinda pricey there, too, but... I took my mom to dinner tonight... just up the street from where we are staying. We had gambas a la plancha (to share), some soup and salad and I had a small cerveza. They brought some bread for the table. I was very happy. The food was good. Then the shock. That meal cost $55 US dollars! I'm in Euro Shock. I didn't know they would charge for the bread. How can anyone live here for very long with a price like that! The 'owners' were very nice, the most friendly people I've met so far. Still, please tell me where to take my mom and myself to eat so I don't have to fly back to the States completely broke. I love it here. I've been all over Mexico and always wanted to come here to Spain. I just can't be doing the right thing...
Ouch!

Hi MsTrvlGrl!

Yeah, it's crazy that they always charge for bread and don't ask you if you'd even like it. The crazy part is bread is so cheap in Spain! Probably what they serve for 2-people costs them about, oh, 15 Eurocents but charge 1.50 Euros for it (or more!).

The exchange rate of US Dollars to Euros is a definite downer but that's the way it is for now.

Just today I had a great lunch with my English buddy at a Taberna near the Spanish Railway Museum. I think it cost about 9 Euros per person with the Menu del Dia and the food was good and abundant. I'm certain we were the only non-Spaniards in the establishment which is always a good thing.

55 US Dollars would be about 33 Euros, right? I don't have my exchange rate converter here handy. But that's about 17 Euros per person for dinner which is a great price, I'd say. Going to sit-down restaurants can easily go for 20-30 Euros per person for dinner. Lunches can be very very affordable in Spain with the set menus.

Hope you continue to enjoy your visit to Spain!

Saludos, MadridMan

Thanks! I will only spring for lunch then. LOL
Can you tell me where would be the best grocery to shop perhaps close to Atocha metro? I've done El Corte Ingles. I want a spaniards grocery.
I really appreciate your site... :-)

The El Corte Ingles supermarket is about as Spanish as they come - although expensive. Not really sure about what there is around Atocha but no doubt there's a supermarket within a couple blocks. You might ask at your hotel (if you're staying in a hotel) and surely they can direct you - although they may not be happy about you bringing food into your room.

Saludos, MadridMan

Of course they're going to be friendly: it isn't often that they get people dining a la carte and ordering one of their most expensive items (i.e., Gambas a la Plancha).
Most restaurants (tabernas, etc.) have a Menu del día for the midday meal that comes with everything including bread and wine or beer. Just order the 'Menu!' It may cost you 10 Euro or so (per person); it translates to about $30 USD for the two of you; a far cry from the $55 USD you say the dinner cost you. That's how Madrileños dine.

If you're in the area between 1 & 3PM, there's a taverna directly across from the Ayuntamiento on c/Mayór. The cook is Asturiana and is very good. Look for the chalkboard out in front for the Menu del Día; what you should have been looking for all along.

Yes, the euro is really hard on the dollar right now! But, as MadridMan said, one of the best things you can do is look for the "Menu del Dia" (prix fixe) at a restaurant for lunch. You will usually get your choice of a soup or salad, a main course with a side dish, and a dessert. I've often tried some wonderful things that I wouldn't have tried before. You will be very full after such a big lunch and it is very economical.

Then, for dinner, you can do a tapas crawl where you have a tapa or two at one place and then move on to the next place. I always love the mesones around Plaza Mayor. They're a little touristy but I like them nonetheless. There are plenty of locals who eat around here, too. Another area you may want to consider for tapas is around Plaza Santa Ana.

Remember, if you stand at the bar, then it costs less than if you sit at a table.

As for a "Spanish grocery" there should certainly be some around your neighborhood and no doubt they will be less expensive. However, MadridMan is right that El Corte Ingles is about as Spanish as it gets. It has the most variety of food you can find. I love going there for food to bring home as gifts and for me. You could stock up on a few things there and have a picnic in Retiro!

Enjoy your visit! Spain is wonderful!

Thank you, everyone, for your comments!
Ojalâ que me quedara en España!
(I hope I said that correctly... LOL)

if you Fancy some posh nosh goto la gloria de montera http://www.lagloriademontera.com/ I think its supposed to be part of a cooking school , and you get a menu del dia for 8.75e , worth every penny

It would be a bit of a hike but there is an "open" market called San Miguel close to Plaza Mayor. This would be one of the truly cheapest place to buy food to bring home, and also quite the experience.
Traveling In Spain.com

FYI: The Mercado de San Miguel, next to the Plaza Mayor, is totally gutted, empty, and only the support beams and roof remains. It's undergoing renovation and to made into a kind of all-products modern market, not just food items - and probably with accompanying "modern" prices.

Saludos, MadridMan