All the cafes on Piazza San Marco offer a simply magical setting, several with full orchestras playing in the background. But you'll pay shockingly high prices (plus a hefty music charge) to enjoy a drink or a snack while you soak in this setting. Prepare yourself for it, and splurge on a beer, a cappuccino, or an ice cream anyway. It'll be the most memorable 15€ or 20€ (that's per person) that you'll drop on your trip.
Venice's most famous spot is Caffè Florian, Piazza San Marco, San Marco 56-59 (tel. 041-5205641), built in 1720 and elaborately decorated with plush red banquettes, elaborate murals under glass, and Art Nouveau lighting. The Florian has hosted everyone from Casanova to Lord Byron and Goethe. Light lunch is served noon to 3pm, and an English tea is served 3 to 6pm, when you can select from a choice of pastries, ice creams, and cakes. It's open Thursday to Tuesday 9:30am to midnight; it's closed the first week in December and the first week in January.
Previously recommended as a restaurant, Quadri, Piazza San Marco, San Marco 120-124 (tel. 041-5289299), stands on the opposite side of the square from Florian's and is as elegantly decorated in antique style. It should be: It was founded in 1638. Wagner used to drop in for a drink when he was working on Tristan und Isolde. The bar was a favorite with the Austrians during their long-ago occupation. From April to October, it's open daily 9am to midnight; off-season hours are Tuesday to Sunday 9am to midnight (it's closed the 1st week of Dec and the 1st week of Jan). The restaurant on the second floor is open the same hours as the cafe.
The 18th-century Gran Caffè Lavena, Piazza San Marco, San Marco 133-134 (tel. 041-5224070), is a popular but intimate cafe under the piazza's arcades. During his stay in Venice, Richard Wagner was a frequent customer; he composed some of his greatest operas here. This cafe has one of the most beautifully ornate glass chandeliers in town. The best tables are near the plate-glass window in front, although there's plenty of room at the stand-up bar as well. It's open daily 9:30am to 12:30am (closed for a few days in Jan and Nov and on Tues in winter).
Il Café (also known as Bar Rosso), Campo Santa Margherita, Dorsoduro 2963 (tel. 041-5287998), is a bit battered but is a popular spot for those under 30. It's a great place to sit and enjoy a drink while watching the ever-fascinating street scenes of Dorsoduro. The antique samovar, old piano, and fading paint evoke a better day, but the place is still going strong. Sandwiches are served; beer and whiskey are the drinks of choice. It's open Monday to Saturday 7am to 1am.
Although Caffè Chioggia, Piazza San Marco, San Marco 11 (tel. 041-5285011), isn't the only cafe whose entrance opens onto the piazza; it's the only one with a view of the Venetian lagoon (off to one side). Starting around 10am and continuing, with reasonable breaks, until 1:30am, music here might begin with the kind of piano music you'd expect in a bar and end with a jazz trio. Don't expect a full-fledged restaurant: The only food served is light platters and sandwiches. Drinks include whiskey with soda, beer, and endless cups of coffee.
The hippest cafe in Venice today is funky little Cip's, on Isola della Giudecca within the Cipriani Hotel (tel. 041-5207744). Pronounced chips (as in potato), this cafe with its summer terrace frames one of the grandest views of Piazza San Marco. If you arrive between May and August, ask for a Bellini, made from prosecco and white-peach purée, or perhaps a sgroppino, a slushy mix of lemon gelato and vodka whisked over ice. You can also order the best bitter chocolate gelato in Venice here. Cip's also serves terrific international and Venetian dishes. To reach the place, take the vaporetto to Zittelle.