Every year more and more small, tourist-oriented cafes and restaurants pop up in Ollantaytambo to cater to the crowds that hang out in the day and increasingly spend the night here. If you're staying in Ollanta and don't mind a drive, you might also consider catching a taxi to one of the fine restaurants along the main road from Urubamba to Ollantaytambo.
My favorite spot in Ollantaytambo is the new Cafe Mayu, Estación de Tren Ollantaytambo (tel. 084/204-014; www.elalbergue.com), part of El Albergue hostal and right on the train tracks. The attractive cafe, which looks like it's been around much longer than it has, features homemade pastas (such as fettuccine with three Andean cheeses), quinoa and other salads, and tasty sandwiches. It also serves excellent breakfasts and great coffee and a locally famous brownie with vanilla ice cream. If you're headed out on a hike or to Machu Picchu, you can also pick up a boxed lunch for S/30. The next best choice, although simple and unadorned, may be Hearts Café, Plaza de Armas (tel. 084/204-078) begun by a British woman, Sonia Newhouse, who operates an NGO (www.livingheartperu.org) that works with highland community women and children -- to which all profits of this restaurant are donated. Besides feeling good about spending your soles here, it's a cozy little spot for breakfast (served all day), sandwiches, empanadas, fruit juices and full, good-value dinners.
Puka Rumi, Av. Beniterio s/n (tel. 084/204-091), is a little bar/cafe that serves everything from eggs to churrasco (barbecue) and chicken; it's especially good for a cold beer on the tiny terrace. Across the street, Tunupa Restaurant & Pizzeria, Av. Beniterio s/n (tel. 084/204-077), the main drag between the ruins and Old Town, is an inexpensive family-run terrace joint with a very agreeable open-air atmosphere. It serves breakfast, lunch, and dinner, from pancakes to pizza and chifa (Peruvian-Chinese dishes). Other cheap restaurants in Old Town, mostly serving cheap, serviceable pizzas, such as Bar Ollantay and La Fortaleza, ring the main square.
Right next to the entrance to the ruins, Kusicoyllor, Plaza Araccama s/n (tel. 084/204-114), is a cozy cafe/bar that is expectedly a tad touristy and overpriced. It serves standard Peruvian and predominantly Italian dishes and offers a fixed-price menu. Breakfast is especially good, making it a fine stop after an early morning tour of the ruins.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.