Translation:We were drinking beer at the new restaurant.
It accepted my first try "Pili jsme pivo v novém restauraci." as well as the recommended "Pili jsme pivo v té nové restauraci." So I'm not quite sure about the novem/nove difference... m on the end not needed when using te? (Or maybe it just counted the first one as a spelling mistake and allowed it, and I didn't notice?!)