To eat in Lagoa is to eat in the Algarve. You can choose to taste the typical portuguese cuisine in it´s coastal towns where fish is a main ingredient. Seafood, rice soups with fish, are also highly recommended, it is your choice.
If you do not enjoy fish, or the local cuisine, you can choose from a wide range of restaurants; italian, french, moroccan, asian etc...Tourism has brought a wide range of international cuisines to this corner of Portugal.