The end of 18th century saw vineyard culture flourishing on the hillsides of Buda. In 1780, amongst the vineyards, Jozsef Teufel cleared a building site and constructed what would be later known as as Restaurant Pejerli.

In 1834 the building and the connecting vineyard were bought by Gyorgy Palmann, then 15 years later in 1850 the property was auctioned and sold to a local magistrate, Antal Herold, and his wife, Borbala Rohman. The property then passed to the well-known Pejerlis through the female branch of the family.

From the end of the 1880s the restaurant became extremely popular: it attracted a crowd of craftsmen, officials, actors, and writers of Buda-Pest. At the turn of the century the restaurant was frequently visited by "celebrities" of the era, such as Arpad Feszty, Ujvari, Nemeth, Szathmary, Kataliczky and Gyula Krudy. It was widely known that at Uncle Pejerli's one could always have some delicious home-made ham, sausage or chicken followed by a glass of great Riesling or Kadarka wine.