A colourful Mexican restaurant has joined the ranks in the heart of Melbourne, with Mejico opening in Pink Alley.

Guests enter via the new laneway off Little Collins Street and step inside to discover more than 260 varieties of tequila and mezcal, alongside a food menu that celebrates the regional flavours of Mexico City.

The two-storey restaurant includes a downstairs dining space in a courtyard and glasshouse setting, while upstairs guests will find a tequila bar and margarita lounge, perfect for late-night drinks.

Each of the spaces can be booked for private events, with capacity for up to 150 guests.

Mejico Melbourne is the second location for the Mexican restaurant, joining Mejico Sydney, which opened in 2013.

“As a Melburnian, I’m so excited to be able to bring the venue to my hometown and open Mejico in an iconic part of the CBD,” said Mejico owner and Hicks Hospitality Group director Ian Hicks.

Mejico serves lunch and dinner daily, showcasing Victorian produce with a seasonal menu including street snacks, tacos, larger share plates, late-night snacks and more.

Highlights include Daylesford beef brisket empanadas with raisins, olives and chimichurri; sweet corn ribs with chilli and lime; pasilla chilli spiced roasted chicken with molé negro and kale slaw; and Mount Macedon fried chicken with plantain and hibiscus hot sauce.

The showstopper of the menu, however, is the ‘tableside guac’, which is prepared fresh at each table and is served with plantain chips.