Anyone wanting evidence that the economy is bouncing back should look no further than Oxford city centre on a Saturday afternoon.

Walking down George Street at lunch time, every resturant and cafe was crammed and, once again, a queue was forming outside Jamie’s Italian — even more remarkable because it is now twice the size of its original incarnation. Such is the power of celebrity.

We kept going, as we had already decided our destination should be Cafe Coco at the Royal Hotel.

I was confident of easily obtaining a table. After all, under its previous incarnations, the ill-fated Savannah and Smollensky’s, staff were almost offended at the invasion of their privacy when a potential diner crossed the threshold, despite upwards of £1m being spent on their business.

But Coco is a different proposition. Owner Clinton Pugh knows what he is doing when it comes to the tricky Oxford restaurant scene.

This is, of course, his second Coco, the other trading highly successfully for years on the Cowley Road, along with his other eclectic establishments Kazbar and Cafe Tarifa.

If anyone is going to make a success of this location on Frideswide Square, slightly off the tourist trail and a little out of sight, then it is him.

So I was correct in that there was plenty of room for us — in fact the waitress told us to choose any table we wanted, which was a nice touch.

But it was still ticking along nicely to provide a pleasantly buzzing atmosphere, helped by a large party celebrating a 15th birthday party.

Having chosen our table the beaming waitress presented us with the menus and wine list.

I chose the Pinot Grigio which I thought would be a safe bet, but the first taste proved how wrong you can be. It was bitter and unpalatable, so it was sent back and it was replaced by a Chilean Sauvignon Blanc which was drinkable, although uninspiring.

Fortunately, the starters were an improvement. I had chosen the tapenade — a mix of olives, capers, anchovies and sun-dried tomatoes blended with garlic and olive oil, which was served with garlic bread.

This was a little salty but an otherwise enjoyable appetiser.

Across the table my companion had chosen the king prawn skewers which came with chorizo and cherry tomatoes with a sweet chilli dip on the side, along with a rocket salad.

This was simple but very tasty. The six prawns were medium-sized while the thinly sliced chorizo added an unusual twist.

While we waited for our main courses it gave us time to take in our surroundings. The familar Mediterranean notes of Mr Pugh’s other establishments are very much in evidence here with cream, brown and blue colours abounding, while there are mirrors everywhere.

Much has been done to create this style, although I still recognised the smart wooden tables from Savannah days with their indentations for the salad bowls. A commendable piece of recycling.

I had chosen the lasagne for main course, which was served on its own. The cheese was nicely crusted on the top and there was plenty of meat, but it was a little dry for my taste. I prefer it with much more bechamel sauce.

My companion had opted for the seared salmon which consisted of a roasted fillet with wasabi and garlic-parsley butter, served with garlic potatoes and mixed leaves.

This was a large portion with plenty of potatoes, while the salmon was pink and tender. It would have been a satisfying meal on its own.

Meanwhile, a birthday cake arrived for the teenagers and an outbreak of kissing and cuddling added a slightly surreal air. I took a stiff gulp of wine which had improved slightly by the second glass and ordered dessert.

The chocolate cake and ice cream which we shared was again simple and just the job.

This had been an enjoyable meal in pleasant surroundings. The food was generally unremarkable but the service was good, and I see no reason why Cafe Coco should not be as successful as its Cowley Road sister.

Menu: Tapenade: £4.50; king prawn skewers: £5.95; lasagne: £8.25; seared salmon: £10.50; chocolate cake: £2.50. Drinks: Sauvignon Blanc: £14.90; coffees: £4.20 TOTAL: £50.80

Contact: 01865 200232 Web: www.cafe-coco.co.uk