I believe Ocean Coffee Roasters Cafe is within walking distance and I've had good breakfast there. If I remember correctly it's at the end of Thames near the Shell Station. Oh and the Coffee is great!
Ocean Coffee Roasters Cafe, Newport - Restaurant Reviews - TripAdvisor
Everything is in walking distance in Newport, to me at least. You shouldn't have a hard time getting around or finding food, it's prettty compact. As far as locals go, I think most of them can only afford to eat at places like IHOP...hehehe. I spent a lot of time down there when I was younger in the "ghetto" sections of town, so my opinion my be off. I'm not trying to scare you!
Enjoy your stay
