Madrid, Spain + Add a trip

Definitely, the little bars around the Plaza Mayor in the center of Madrid are really cheap and nice (OUTSIDE the square, the ones inside are really expensive, beware!). That's where I would eat in case I were on a budget.

ANY cafetería not in the very center. Madrid is full of cafeterias, but remember, our breakfast is made of coffee, bun or toasted bread with butter and jelly, and a glass of orange juice. Also, if not too early, you can have a delicious "pincho de tortilla" (spanish omellette)

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There are many places you can go to have nice breakfast in Madrid. Just be careful about brunches due there are too much expensive normally.

Also you can do a stop by Horno de San Onofre to indulge for a day :)

Large salad (you choose the ingredients) with a freshly made fruit shake at a Faborit (chain of cafés) is only around 7 euros during lunch time (1PM - 4PM). There's one in Plaza de las Cortes.

The best way to have lunch on a budget is to have a "menú" at a normal bar or restaurant in the area (the word "menú" is usually displayed outside with the price. Office workers that can't go home for lunch eat daily in such places.