Pan y Paz is a Managua bakery and cafe institution that has operated in the Altamira area for years, drawing a loyal crowd of professionals, students, and NGO workers for breakfast and lunch. The specialty is fresh-baked bread — the rosquillas (corn flour rings), semitas (dense sweet rolls), and pan dulce (sweet bread) are all made daily and disappear fast.
For breakfast, the standard Nicaraguan desayuno tipico — eggs, gallo pinto, sweet plantains, bread, and coffee — is done well here and costs under $5. The coffee is good by Central American standards (Nicaragua grows fine coffee, though the best is mostly exported). It is a comfortable, slightly chaotic place that feels like the real Managua rather than the tourist version, and the bakery counter is worth visiting even if you only buy bread for the road.