Iran is an alcohol-free country and Yazd is no exception. What the city does well instead is the traditional tea house (chai khaneh), which serves as the social anchor of daily life in much of Iran. In Yazd, these range from simple stalls to atmospheric vaulted rooms where you sit on low platforms, drink black tea from a glass, and crack pistachio shells.
The most enjoyable are tucked into historic buildings around the old city. Look for places near Amir Chakhmaq Square and the Khan Bazaar, where small tea houses and juice bars occupy arched niches or caravanserai courtyards. Fresh pomegranate juice, carrot and orange juice, and saffron-flavoured sherbets are the alternatives to tea. Yazd's sweets — qottab, pashmak, baklava — go well with tea and are worth picking up from a nearby confectionery to eat in.
In recent years a few café-style places have opened in the old city catering to international travellers, serving Iranian coffee (a light filter variety), freshly squeezed juices, and light food. They tend to be quieter in the evenings and are a good place to compare notes with other travellers.