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New Year's Eve in Prague

My family of four will be in Prague over the Christmas and New Years holidays. On New Year's Eve, we wish to be able to walk around the city and enjoy the atmosphere with all of the fellow revelers; but, we also wish to have dinner at a reasonably priced restaurant. My research appears to indicate we should have a reservation. Do you think it is possible to walk around the city and, while doing so, find a reasonably priced restaurant? Or, do you think a reservation is required. If so, can you please indicate an easy way to accomplish this and do you have any recommendations? Thank you.

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