You can eat in Granada, Nicaragua for a fairly cheap price. Most people will go to restaurants, but restaurants would charge US $10 to $15 per plate. There are other alternatives, which foreigners generally do not go to, but are where the locals eat.
There is the "fritanga" (fried snack), which is Nicaraguan street food. People put their servings on the sidewalk and sell after four o'clock in the afternoon, but these vendors are not regulated. You can get a good meal from street vendors for $3 to $5. Most places won't have a table to eat at, but there are some that do.
The food is usually takeaway stuff like "gallo pinto" (rice and beans), "tajadas" (plantain), chicken, or steak. Tajadas is a nice meal composed of strips of fried plantain served with fried cheese and a salad, which costs around 60 córdobas ($2). Years ago, everything was fried like fried chicken and ''maduros" (sweet fried plantain). The menu has evolved and they now also have steaks and grilled stuff along with the fried food.
Like everything here in Nicaragua, try to get a good reference from word of mouth before you go into a fritanga because sometimes you could get into a place that you would get stomach problems afterwards.
Fritanga is a local food, but I eat fritanga for dinner at least twice a week. It is very popular, especially in cities like Granada and Masaya, but you can get a fritanga in every city in Nicaragua. Backpackers who come to Nicaragua eat at fritangas and won't go to restaurants.
In a restaurant, for $15 you would get a good, decent meal. In a fritanga, you eat a lot with $5 and get decent food for $2.
(Fritanga street food, Nicaragua, pictured.)