Tables and chairs are usually set outside, and prices marked up somewhat en terrasse.
From the en.wikipedia.org
That's with a cafe au lait in hand, seated at a terrasse watching the world, and the waifs go by.
From the cnn.com
One good tip is to buy a bottle of spirits in duty free, and drink it sur la terrasse of your hotel or apartment with a mixer.
From the independent.co.uk
Not just smoking furtively on the terrasse, or near the door, but waving great big, full-blown fags about in the middle of the room.
From the guardian.co.uk
More examples
Terrace: provide (a house) with a terrace; "We terrassed the country house"
Terrace, mount in base, champagne (qv).
French for a 'patio', used by Montreal anglos. Montrealers love to sit out on terrasses. Partly because of the superb people-watching to be had here and partly because when winter lasts six months, people make the most of the warm weather.