Sarajevo has several nice restaurants around the slopes, but Kibe is maybe the best deal. You get there via Bistrik, which is the area south of the Miljetcka river, opposite Old Town. Drive up hill and continue across the so called Tranzit road further up. You'll pass the restaurant Park Princeva that also has a nice wiew but is over priced. Kibe is on a side street on the left side of that "main street". Kibe is avarage when it comes to the interior and prices, but it sure has a nice atmosphere and nice people running it. The best is part is of course the fantastic wiew overlooking the whole city and the good food for a cheap price. Now wonder it's very popular. They serve all the basic Bosnian cruisine, everything from chevapi and pleskavica to sarma and sac. They have a fairly big garden with wooden tables and bences and people tend to sit and enjoy for hours. Inside it's a bit more fancy with table cloths and everything. The restaurant is also conveniently situated on the "hiking route" to Trebavic mountain where the 1984 Winter Olympics' Bob Sledge is. You can reach it in one hour. Sitting on the terrace of the restaurant it's not unusual to see cows and sheep strolling around so it can be an additional experience for the kids.
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