"You walk to the restaurant."
Translation:Du läufst zum Restaurant.
I read somewhere (forgot where) that when choosing which form of "to" to use, "am" is for when you're going to attend a university or something impressive like that, i.e. "Ich gehe am Universitaet", while "zu" is used when you're going, say, to the market. Is this accurate or not? Thank you! I also note here a friend's opinion, that while learning prepositions, you should go by what sounds best to a native speaker, and not try to connect to English. That makes sense, because English prepositions are not logical either, except in some obvious cases.
"...to the restaurant" translated literally would be "...zu dem Restaurant", where "the"->"dem" instead of "der" because of where "restaurant" fits in the entire sentence (dative case). But in German they are combining "zu dem" into the single word "zum". If instead you were going to the celebration ("die Freier") then it would be "...zur Freier".
In this context I'd say no. 'Spazieren' means 'to walk' in the sense of 'strolling'. If you're heading for a goal, it isn't normally used except if you want to emphasize that you're walking very slowly and without time pressure. IMHO the best translation here is 'Wir gehen zum Restaurant'. I wouldn't use 'laufen' here because it could be easily confused with its primary meaning 'to run'.