What works best for a 2 year old birthday celebration

[Taichimum]

Want to do something but don't know what. He has lots of friends his age and we have lots of friends our age and of course family. However we have limited space at home and money. Not sure what to do as he is still a bit young to really get it or play party games, but there seems to be an expectation to have a do.
Thought about two pronged approach - soft play centre with his age group and going to the zoo with family.
Any advice appreciated.

A couple of friends around for a birthday tea and a nice day out with the family I would say.

at that age they really don't get party games like pass the parcel or musical bumps etc etc ( trad party games ). A party at home just playing with toys works well, maybe with a lucky dip or find the treasure sort of game. Soft play would be nice, but I'd save the big parties for when he's a bit older.
zoo sounds like a nice option

Just go to the zoo.