This really is an undiscovered little gem. My parents have been visiting Benalmádena for over a quarter of a century and didn't know about this place until we told them about it a couple of years ago. Tucked away off the main road near Arroyo's railway station, there's not a single bad thing to say about this place. It's always packed with locals, which, in our opinion, always makes a restaurant worth trying for tourists. If the locals appreciate it, it must be good.
Atmosphere is wonderful. Spanish restaurants are always great when they're full of animated Spanish, and this place doesn't disappoint if you're into people watching. Food is fabulous, chicken, steaks and fish are all fabulous, and the mixed meat skewer is to die for. I'd love to know where they get their butifarron from, I'd invest in a bucketful! House wine is very reasonable and very good, and their wine list is simple but full of quality. Beer is beer! Staff are very friendly, attentive and especially appreciative of children. Spanish restaurants are notoriously welcoming to families, including children of all ages, so if you've got kids with you you'll be made very welcome.
No idea on total costings, but I expect that on average over the times we've eaten there it's been about 25-35 euros per person, including drinks, dependent on what you're eating. Obviously if you're having steak from a corrida killed bull, you'll be paying a lot more! One word of warning, the fresh crusty bread and allioli dip they fetch you out as an appetiser is possibly the most addictive foodstuff in Spain, if not the entire planet. You have been warned!