Albufeira is very good and very economical for eating out.

The old town and the strip are the two main centres, and have the usual restaurants selling grills. Don't underestimate just how good the grills are, especially the fish and the chicken.  Budget 35 Euros per night for good quality food. The fish is, as you would expect, fantastic.

For something a little more special and a little more expensive try the 3 Palms.

For Chinese, try the Golden Garden on the Strip ,It worth while finding the HAPPY HOUSE 9euros all you can eat !! All the locals know it ask for directions.

For Dutch international kitchen go to Hollandaise, just across the taxi rank next to the strip.

Don't stick to the Sardines and Piri Piri Chicken, which although good generally are a little samey. The sea bass is a favorite. Watch out for restaurant El Rancho on the end of the strip.

For Indian food, the best to go is the recently opened Simran Palace, The Clay Oven or the Bombay Palace also next to the taxi rank next to the strip.

Albufeira Old Town has some great restaurants:

The best one on the square is Bravo, the food is fantastic and very good value for money, a meal with drinks will set you back about twelve pounds per person and the service is first class.
 

But if you get off the square and look at the smaller restaurants behind the square (the tunnel road )you can eat for 5 to 10 euros a head.If you really want to capture  the Algarve life make you way to FISHERMANS  BEACH there you will find many beach restaurants all overlooking the sea ,the most exclusive is THE RUINA ,exclusive because of it´s prices!!! 70 to 80 euros at least! Once again you will pay for high profiled positioned restaurants, go one road back and and you will eat  for a fraction of the front restaurants.