Mexican food may not be your first choice when in Budapest, and no one can blame you for it. But if the craving for tacos and margaritas strikes, you are unlikely to be disappointed by Tereza, as long as you remain mindful that Mexico (and California and Texas) are half a world away. Tereza—whose moniker is a playful latinization of Terézváros, the local district's name—is run by the owners of Mazel Tov, the wildly successful ruin bar just a few blocks away.
Although there's a below-ground indoor section, too, Tereza comes into its own in the al fresco season, when the gravel-covered open-air space next door transforms into an atmospheric night-time hangout, lit by lanterns and the occasional tongues of flame leaping from the grill station.
The food is hit or miss. The tacos—carnitas, al pastor, and pollo—came on disappointingly flavorless wheat tortillas, and no more exciting was the cheese quesadilla (€9). But I enjoyed the fajitas, which, unlike the original Tex-Mex version made with skirt steak, arrived with pork, and the usual side of peppers, onions, guacamole, and corn tortillas (€11). Note that Tereza isn’t cheap—a chicken burrito bowl runs €11—and, accordingly, many people stick to just drinks here. Apart from the dozens of tequila and mezcal options, there are classic and also flavored frozen margaritas (€7), the latter also available by the pitcher (€25).
Tereza's customers consist of chic locals, many of them groups of girlfriends, and tourists. Note that the outdoor section is usually open from April to September.