Cafe Palazzo is a lovely place to sit and relax, regardless of the weather.

Cups of Coffee. Author/Photographer: Hendrike (1998) (Wikimedia Commons)
If it is raining, have a coffee and a piece of tiramisu cake, while reading the newspaper or watching the news on TV. If it's sunny, take your juice and sit under the verandah cover. Enjoy the peace and quiet, while chatting with friends.
I recommend the bowl of vegetables (go with the healthier option), chocolate cake (a once in a while treat), Byron Bay biscuits, pizza (of course), gelati and chips (yum!). As for beverages, try the Santa Vittoria, milkshakes (the best) and juices (nice and cold for summer).
A nice place to go, if you need a quick break or a small piece of cake.
Palazzo on the Parade is close to the main shops and a lovely place to come with the kids after school, or on the weekend.