Is there any remotely decent food inside Disneyland or CA Adventure? If not, Downtown Disney or even Anahem. Must be school age kid and grandparent friendly.
You'll have better luck posting this on the L.A. board. They cover Orange County there, too. However, since your post is here, I'd vote for The Blue Bayou by Pirates of the Caribbean. Get the Monte Cristo sandwich! Nice setting and fine for all ages. Most of the places in Downtown Disney are just okay. I've eaten at House of Blues and Rainforest Cafe. Both are fine for families.
Rainforest Cafe in downtown Disney is great for kids and the food is pretty good. Nothing that will blow you away but lots of selections and something for everyone.
We ate at a Creole restaurant in Downtown Disney (not House of Blues) and it was good. The best was the double chocolate bread pudding, though. Decadent and yummy!
The food at La Brea Bakery was good, too (especially the butternut squash soup).
If you want to try The Blue Bayou, head there as soon as you get in the park and make reservations.
I think any place in the vicinity of Disneyland is going to be kid-friendly - how can you not be?
The place you are thinking of is Ralph Brennan's Jazz Kitchen in Downtown Disney. We ate there over a very crowded Thanksgiving weekend. Four adults and one child. The wait time was minimum, unlike most of the other restaurants during that weekend. There was entertainment (a jazz band). The food was okay, although one adult in our group commented on the fact that the ravioli was $5 each.
There is this place by Pirates of Carribean that is a cafeteria style place where you pick up your food and pay at the end. It might be Blue Bayou, it might not be. They have chicken nuggets for children and clam chowder for grandparents. There is also a little stand right by there that only sells clam chowder and gumbos.
Definitely try to get into the Blue Bayou if you haven't been there before. If you are staying at a Disney hotel, they can get you a reservation. If not, go straight there when the park opens and get on the list. The ONLY thing to order is the Monte Cristo.
The Bengal BBQ skewers in Adventureland are pretty good, and there is a La Brea Bakery in Downtown Disney that isn't too bad for a quick breakfast or sandwich. The Patina Group runs a few of the restaurants in Downtown Disney - di Uva or something like that, and I think they are ok. I'd avoid the Brennan's kitchen or Rainforest Cafe, unless your kids will love it.
If the park is insanely crowded - I find that you can usually get a table at the Hungry Bear place - it's sort of pleasant overlooking the water. The burgers and the bbq chicken salad aren't anything special, but they aren't terrible either.
We've also been to the Napa Rose in the Grand Californian and it's pretty good, but definitely fine dining. If your kids will like it you might also want to look into one of the character breakfasts at one of the hotels.
re: Alice Q
Uva Bar or Catal are the two Patina restaurants, Uva is outdoors, no reservations, and fairly reasonable. I wouldn't say either restaurant of those two are especially kid friendly.
The restaurant situation around Blue Bayou has changed a bit. The Monte Cristo is now also featured at Cafe Orleans which has become a full service restaurant. BTW, do NOT wait until the morning you arrive to get a Blue Bayou reservation. Call the Disney Dining line, 714-781-DINE. I think you can do this 30-60 days ahead.
Other restaurants I like inside the Disney park are Rancho del Zocalo, although they keep cutting down the menu, and the Plaza Inn , the Broasted Chicken dinner is perfect for sharing.
Inside the Grand California is the Storyteller Cafe. Sometimes there is a buffet and sometimes a menu. Still Disney pricing but much less expensive than Napa Rose.
Inside Calfornia Adventure, Wine Country Trattoria is nice for a more casual place.
Disney portions tend to be enormous, definitely consider sharing.
Catal is fairly kid-friendly, with a wonderful kids' menu, stroller parking, etc., although it is more for restaurant-trained kids than for feral toddlers.
Inside the park, Plaza Inn is somewhat better than you would think it would be - I think it arose in the '50s as an answer to Mrs. Knott's - and both the fried chicken and pot roast are quite acceptable.