Rose and Crown is a great place...BUT. You have to get a reservation at the right time and you won't be guaranteed a patio seat. What you WILL be guaranteed though, is a private viewing area that has an amazing view of the show.
We did this the first year they offered Free Dining. I made our ADR at around 7:30(can't remember the exact time). When we checked in, I specifically told them we would wait for a patio seat, as did the couple behind us. Within 5 minutes we were taken to the patio, but were seated on the side. Not a great view. By the time the show started we were ready for dessert. The server took our order and said she wouldn't bring it to us until Illuminations was over or we were thru watching(at our request). Whether you are inside our out, you can leave your tabel and will be directed to the back of the restaurant to watch the fireworks...then you can finish eating.
I wouldn't worry too much about getting a seat on the back veranda there. It takes alot of luck, and some CM's won't let you "wait" for a patio table.
You'll still have a great area to view the show. Make your ADR's ASAP to get a good time.
Also, People start saving "seats" very early on. If you can't get to Rose and Crown, Cantina de San Angel in Mexico is a good place if you can grab a table by the water early enough.
I'm sure others will come along to help.......
Another nice spot, though not able to sit at your dining table and view, is Teppan Edo in Japan. During, or after your meal, you could walk out on the balcony and have a great view of Illuminations. Here is a picture from there about six years back....
Eating outdoors at the Rose and Crown while watching Illuminations is one of the most incredible experiences I've had at WDW.
The restaurant turns down the lights during the show. We had dessert by fireworks light. The view is amazing. After the show is over, and the park is closed, you finish your meal, finish your last round of drinks, you get to leave the nearly empty park as slowly as you like without bumping into anyone...with the background music is still playing, the lights reflecting off the water.
I guess there could be a downside, but its unlikely...if the wind is blowing in the wrong direction (usually it is very still at night) you could get a nose full of smoke during the show.
I second (or third) the Rose and Crown. Even if you are inside, you can leave your table and go to the private viewing area that they have for their guests. It offers a great view of the show, and the servers are very cognizant of timing things so that you don't get your food just before things start.
Rose & Crown is best. And if it rains, they pull down tarp things with plastic windows so you can still watch and not get wet. I've been on the water twice - both times the reservation was for 7:30.
Cantina de San Angel is okay. It's my favorite place to eat in all of the WS, but the tables get sucked up VERY early. And it really isn't the best view anyway. I think there are trees in the way in some sections, too, but might be wrong there.
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