Last week I had one of my most memorable meals ever at the BurgerStube restaurant at the Wilden Mann Hotel in Luzern. The room is absolutely lovely--the very best of your ideas of traditional Swiss decor. We were a group of ten (we made a reservation that afternoon) and received impeccable, warm service. The chef sent out a delicious amuse bouche of vichysoise (sp?)with leeks. Most of us opted for the special menu of the day which included four heavenly courses of delectable cuisine (main course was lamb saddle). After we finished everything the chef sent out a plate of various small treats (3 for each person. It was a WONDERFUL meal and it cost just 67 Swiss Francs per person ($55 USD). Here's a link to a virtual tour of the lovely space:
http://www.wilden-mann.ch/ipix/e_burgerstube.htm
Luzern (Lucerne) restaurant recommendation
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My wife and I stayed at the Wilden Mann Hotel in May and also at the Burger Stube Restaurant and we found it very good. But we also ate at another restaurant across the river, the Pfister restaurant where we dined with our friends who live in Luzern and call it their favorite restaurant. It is not as exspensive as Burger Stube but the food is equally comparable.
If you are in the area of Lucerne and you have a car, go to Alpenhof in Küssnacht am Rigi. It's a farmer's house transformed into a restaurant. Great Swiss food, reasonable prices, beautiful farmland with a view of Pilatus, excellent playground for kids and lots of locals.
see: http://tinyurl.com/2zt8xh
(The picture does not do it justice.)