My favorite restaurant, and a reason to stay living in Tucson is a place called El Charro Cafe. There are now five locations in Tucson and I've been to every one of them at least three times. Not only is it the best Mexican restaurant in town, it's also the oldest Mexican restaurant (run by one family, that is) in the nation! El Charro has been in continuous operation by the same family since 1922.
The first location was opened by Monica Flin, who is the great aunt of Carlotta Flores, the current owner of the restaurants. The first restaurant moved four times and now resides on Court Street in the El Presidio district in Tucson. The site was first the home of Monica's father, Jules, and was willed to Monica and later made into the El Charro Cafe in 1968. Each restaurant is run by one of the family members but each has (pretty much) the same menu and fantastic food.
The Court Street location is my personal favorite as it boasts an ambience that the others lack. The location has an outside patio area between the restaurant and the bar, a basement dining location and random rooms throughout that contain tables and beautiful Mexican artwork.
Beyond the ambience and the history, the food and margaritas are delicious and even crave-worthy. My favorite dish is the Bahia Style tacos with Carne Asada. "Bahia" means "bay" in Spanish and for all you non-locals, Carne Asada means "DELICIOUS STEAK" or just charbroiled steak if you're a vegetarian. Sorry, PETA! The tacos come four to a plate in little flour tortillas with beans and Spanish rice. Pair those with a house margarita or the new organic margarita (or three) and you won't want to leave the cozy restaurant. I work at a restaurant in town and see many visitors from around the country. I always recommend El Charro for the best Mexican food and out of the ordinary ambience. 
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