Casual Dinner places in Newport...Yesterdays(great food , great tap selection ,great wine list) salvation cafe,red parrot, black pearl out side patio or Sardellas. You can call ahead for reservations on most of them. Breakfast- atlantic grill on aquidneck ave or Corner cafe on Broadway...Asterisk on Lower thames is also now doing breakfast.
There is a good Irish Bar called The Fastnet in Newport. It has nice large removable windows all along the front and has plenty of room for a group.
For breakfast, there is a dinner down at the end of Thames that could handle groups. it I can't remember the whole name of the place, but it is something '... Handy's Diner'