Gerlóczy is a cute café and restaurant tucked away in an unusually quiet pocket of Budapest's downtown. The tiny plaza outside Gerlóczy is surrounded by elegant pre-war buildings and conjures images of a Paris backstreet. Perhaps this is why the interior, sporting a high ceiling, small round tables, and leather banquettes, feels like a French bistro. Gerlóczy's outdoor terrace is especially enjoyable in the warm months (whenever the local municipality isn't using this precious space for construction equipment storage).
In the mornings, they serve reliable pan-European breakfast staples including frankfurters with a side of mustard (€5), omelettes (€5), and quiche (€6). Be sure to order the crispy and flavorful rustic bread, too. The dinner menu is a hodgepodge of dishes spanning from foie gras parfait (€9) to goulash soup (€6) and homemade pasta with prawns (€9).
Most of the patrons are tourists given that Gerlóczy isn't cheap and it has been featured in several Budapest guide books. If you enjoy the ambiance, note that they also operate a boutique hotel on the upstairs floors.