Over the hill from Byron Bay, Watego;s Beach is a beautiful spot with a charming hotel and cafe/restaurant only open in summer. The views and sea sounds are wonderful on a warm evening outside but there are inside seating options for too. It's not cheap eats and it pays to book. Their menu bar a few options are all marine creatures and everything we tried was delicious in our party of 5 people. It's a mod-Oz take on seafood from fish with tamarind and lime sauce to thick, rich chowder and of course fish and chips. It's licensed. I have heard, but can't confirm, you can do take aways and choose your own seating in the small pretty park or on the beach, in which case you would have to byo booze.