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I find that eating out on Cozumel is roughly equivalent in price to eating out in Austin. There is a wide range, of course.
It is I guess if one has eaten out in CozumelThis is not very useful for people who have never been to Austin.
Off topic, but what is the current water temp Christi?If you are non-drinkers, you can have a really upscale meal for under $25 a person (that's high end) - lunch for $10 or less - so if you budgeted $35pp/day for food, I think you'd find yourself with plenty leftover
I always say if the prices are in pesos, pay in pesos, if the prices are in dollars, pay in dollars.
Using a credit card to pay in pesos in restaurants will get you the best exchange rate for your meal because your bank will be the one converting. Of course some cards charge a foreign transaction fee which would negate any exchange rate benefits - but if you have a card that charges no foreign transaction fees, that's the best way to go.
Current "street" exchange rate here is 18:1 - using my Capital One card I am getting 18.4 - 18.6:1
Hope that helps!