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Jo's Coffee Shop, on South Congress Avenue by the Hotel San Jose

From Andrew Collins, About.com

photo by Andrew Collins
Adjacent to the hipster-infested Hotel San Jose, a favorite getaway among musicians and artists, Jo's Coffee Shop is a cool little open-air spot with ample seating and great people-watching. Drop by for chai teas, hazelnut lattes, banana nut bread, salami-and-cappacola sandwiches on onion foccacia, frito pie with pulled pork, and parsley-jalapeno cole slaw. Several beers, including Shiner Bock, are also served. On Thursdays, Jo's shows outdoor movies at 7 pm (Longneck beers are just $2 during the shows). There's a newer branch at 242 W. 2nd Street, downtown.
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