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There are two streets in the old town...
There are two streets in the old town of Santiago de Compostela which are full of bars and restaurants serving local cuisine. They're pedestrian streets, and the establishments lining them are usually filled to capacity, but in good weather, you can eat outside. These streets are adjacent to Entrerruas Alley, near the cathedral. Most of the establishments are simply decorated, usually with wooden decor.
I recommend trying the local octopus, which is usually exquisite, but also a portion of potatoes or ham, which are equally impressive. There's plenty of fish and seafood on offer, and many of the restaurants show giant crabs and lobsters in the windows.
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