Our favorite Mexican restaurant in Gilroy is La Hacienda, and I particularly enjoy the carne asada Al Chile negro. The service is also outstanding. We would definitely recommend this place!
The best Mexican food spot in Morgan Hill, which is conveniently located near Honda, is a must-visit, with excellent service and ample parking options. There are also seating options for both indoor and outdoor dining.
My review is for the last time I have been back. When I ordered a chimichanga burrito it was just big and smaller than if frozen burries. The portions are now much smaller and prices are higher, so when they serve less you feel like crap. Won't have to go anywhere else because of the price tag (slight increase) but should be going somewhere in the taqueria.