We ended up eating at this restaurant twice during our stay in banos. As others have said, it's that good. Their guacamole and pico de gallo sauce are some of the best I've ever eaten.
The first night we had the large guacamole nachos and the red chicken enchiladas(4). Very, very tasty, and enough food for the two of us.
The next night I ordered the carne burrito. (Carne, chorizo, red and green peppers, jalopenos, and onions). This was suburb. My taste buds were ecstatic.
The dinner of 4 enchiladas the first night was $8. and the burrito the second night was only $5. On top of great taste the check is also kind to your wallet.
They offer a number of types of beer at $2 per 600 ml.

The atmosphere at the restaurant is very low key and casual, but with good service.

As one other poster mentioned, just forget the rest and head on over....

Had my best meals in Banos here -- so good I went back three times, which I rarely do when on vacation (too many other good options to try, but that's how good A Lo Mero Mero is!!). Huge fan of their chicken fajita burrito, and have heard rave reviews re: their Mexican burger as well (although I didn't try it). Also recommended: the drinks they make at the kitchen. The staff is cheerful and friendly and the food is delicious and not over-priced (for Banos). LOVE it!!

Great nachos with lots of cheese and guakamole, and great chicken fajita. Try the biela beer (the ecuadorian beer that is not the pilsner). Really friendly people.

This was more of a quick dining experience rather than a "linger over the meal" kind of place. Both the chicken and beef burritos were fine but nothing special. Their homemade salsa and guac were the best part. For the price.....they could have done a bit better.

Service was good so where the nachos I have always been worried about Mexican food in ecuador just because there flavors are so much different. But they surprised me and the prices where pretty good. I wish I had more time in banos to try some other things but I will return someday.