Hi, Jennifer!
You've got so many options for excellent dining at Downtown Disney! Great choice!
If I had to choose one Table Service restaurant for a nice meal for the grandparents, my first choice would be
Wolfgang Puck Grand Cafe. The food is fantastic (we've never had a dish there that wasn't
wonderful) and the service matches as well. We also really enjoy
Fulton's Crab House, especially if there are seafood lovers in the group.
Crossroads at House of Blues has also become a favorite due to their lobster mac-n-cheese and cornbread that's incredibly delicious.
For a special treat, the atmosphere at
T-REX is the way to go. If you've ever been to a Rainforest Cafe, this is similar, except themed around the Jurassic era; even their signature dessert, Chocolate Extinction, will be a dino-hit for your entire gang! Because this restaurant is so densely-themed, you won't have to worry if a little one needs to get up or move around a little bit; there is a lot to look at here!
If you happen to be at Downtown Disney and are looking for a Quick Service meal, do not miss
Wolfgang Puck Express at Downtown Disney Marketplace. A unanimous family pic as THE best Quick Service location on Walt Disney World property, we never take a trip to WDW without dining here at least once. We aim for breakfast here, but are easily consoled when we just miss it and have to "settle" for lunch...it's that good.
Send more questions as you think of them, Jennifer! We love to help!