If you are staying near the Lido area there are several restaurants to choose from which offer outside dining.

One of the best is the Lido Mar situated just next to the Lido. The view from the terrace is amazing. The restaurant specalises in fish dishes with prices starting at around 11€  and the quality is excellent. However, the house fillet steak is also recommended (14€). A word of warning -the nibbles offered before your meal arrives will be charged to your bill!

The Red Lion has also gotten positive reviews in the TripAdvisor Funchal Forum.