Raekoja plats is the place to be if you want to grab a beer, relax and
watch people pass by. Unfortunately, the pubowners have understood
this, so they charge ridiculous amounts for drinks that elsewhere is cheap.
So, if you can avoid it, do.
Unique Suggestions: If you still have to go here, try to ignore the prices and enjoy your company
and the beautiful buildings around the square.
Fun Alternatives: An alternative is to take any side street and discover a place
more interesting and with more value for money!
I have heard before that Tallinn could be more expensive than Vilnius, Riga, but never thought it will be so expensive. It is always better to go for some dinning a bit outside old town or to ask local about places to eat\drink cheaper. There are such, but not much and quite crowded.
As example, prices of typical postcard with Tallinn view in old town could cost even 3 times more expensive than in Tallinn central post office.
Be prepared to pay high tourist prices in the cafes, restaurants and shops in the area around Raekoja Plats (Town Hall Square).
The prices for drinks or postcards are often twice as expensive as in other places. Nevertheless, the centrally located cafes and restaurants are just nice for people watching ... :-)