There are many cafes and casual street restaurants in el centro, downtown Zihuatanejo. They are surprisingly inexpensive. Dining along Paseo del Pescador, the beachfront strip downtown, is more expensive, and not really necessary. IMO, I don't think that there are any real restaurant destinations along the Paseo.
The restaurants along Playa la Ropa will be slightly more expensive. Many eateries along La Ropa will require a food/drink minimum, usually not a problem. The food at Playa las Gatas will be slightly higher also.
One way to make your food dollar stretch is to shop for food at the old mercado (food stalls) in downtown. I love to go there and shop. Warning: As tempting as it may seem, try not to eat at the food stalls with prepared food. Trust me.
You could also shop for food at the Comercial Mexicana, a type of Costco supermarket. Very big and very clean. It cuts costs to prepare a simple, small breakfast or lunch at your lodging.
I might suggest that you visit ZihuaRob's restaurant page and peruse some restaurants online. Perhaps you can gain some insight to prices.
You might also pose your question to ZihuaRob's forum. There are lots of experts there that could answer your question about food budget in Zihuatanejo.
Edited by Greg, 01 August 2006 - 08:42 AM.