On the lively Rua Imperatriz D. Amélia, in Funchal, Terreiro Restaurant stands out as one of the more relaxed - yet no less refined - dining options at the Savoy Palace. With a spacious garden, terrace, and a variety of settings ranging from a veranda to an indoor dining room, the venue presents a clear identity: Portuguese and Madeiran cuisine with Mediterranean influences, centred around the concept of comfort food.
It is precisely this idea of comfort, combined with a careful reading of customer behaviour, that underpins the restaurant’s new menu, a natural evolution rather than a complete departure.
At the helm of the kitchen is Head Chef Alejandro Nunes, who explains that the changes are based on concrete analysis: “When we change menus, we analyse sales. There are dishes that work, and that means they are successful. So we choose to make small upgrades rather than change everything.”
This approach is particularly evident at lunchtime. The team has reworked the so-called “chef’s suggestion” by fixing three of the best-selling dishes throughout the week: duck rice, octopus rice, and steak with mushroom sauce. “We took the three best-sellers and kept them available every day. These are dishes people look for, and it makes sense to keep them consistent,” the chef told Essential.
Dinner brings new additions
It is at dinner that the main nouveautés appear. The new menu introduces dishes that reinforce ties to Portuguese tradition, with a contemporary touch: seafood rice, acém steak, and lamb shoulder served with oven-baked rice.
At the same time, the restaurant responds to a growing demand for vegetarian options. A creamy mushroom barley has been introduced, served with rocket salad, mustard and honey. “It’s our pearl barley, very typical of Madeira, prepared as if it were a risotto,” explains Alejandro Nunes, highlighting the intention to showcase local ingredients through familiar techniques.
The dessert menu has also been revised, in collaboration with Executive Pastry Chef Pedro Campas. The result is a balance between innovation and tradition.
Among the new additions is a fresher dessert combining forest fruits, meringue, lime and basil ice cream, designed for those seeking lighter finishes to their meal. At the same time, there are options that reinforce Portuguese identity, such as a reinterpretation of the classic custard tart and the house dessert, which combines honey cake, barley coffee, Madeira wine and mascarpone.
Small details that make the difference
Despite the updates, the core of the menu remains faithful to what has already won over customers. Dishes such as the roast chicken and bodião (wrasse) are still present, albeit with subtle adjustments. “They are upgrades,” the chef summarises.
In the case of the chicken, the change lies in the accompaniments and presentation, for example, replacing standard tomatoes with cherry tomatoes in an Algarve-style salad, providing greater acidity, improved texture and a more appealing visual impact. The bodião remains as a starter, served as fritters in beer batter, with fermented garlic mayonnaise and pickled onion.
In a restaurant that welcomes both local diners and tourists, the way dishes are presented and explained plays a key role. The front-of-house team is prepared daily for this challenge. Service is efficient, with an attentive and dedicated team focused on detail, all overseen by sous-chef Maria Correia.
“In our briefings, we guide how dishes should be explained with that purpose in mind,” says Alejandro Nunes. The aim is to help guests understand concepts that may not always be immediately familiar, such as fish stew with coastal fish and prawns, whose richness can surprise those less acquainted with this style of cuisine.
A complete and relaxed experience
Beyond the new menu, Terreiro continues to offer a diverse selection: catch of the day (such as wreckfish, grouper, sea bream or sea bass), duck rice, fried octopus with tomato rice and coriander, a children’s menu, and a takeaway service.
The experience also extends to the drinks list, featuring signature cocktails - including alcohol-free options - and a wine selection that combines national and international labels.
The meal can end on a distinctive note with the “Manhoso”, a house-made liqueur created by the team, featuring flavours such as chocolate and kaffir lime, among others.
More than just a restaurant, Terreiro presents itself as a hybrid space that evolves throughout the day. Between meals, it comes to life as a gastrobar, offering cocktails, wines and social moments, often accompanied by live music.

