Family friendly to me means accessible, affordable and welcoming, hopefully all three together!
tbh pretty much agree with all comments/suggestions made so far but some of my bugbears:
Better choice/size of kids' food - should be able to offer two different size portions easily enough - quite often what my dd gets would be way too small for an older child, i.e. one sausage and small portion of beans, when menu was for upto 10 years old and sometimes can be too much for younger children. Also not sure why there has to be a separate menu for kids, why not offer smaller portions of adult meals? If kids menu is being offered then at least make it healthy and interesting - i.e. Ikea, Pizza Express and not just the same old nuggets etc.
Better baby changing facilities - they are often quite grim places which don't ever appear to see a cleaner, and why is there never a toilet in there, unless it's a disabled one? Would be so much easier to change nappy and go to loo myself or take dd then go to one cubicle and then another where have to leave ds in buggy outside whilst me/dd uses the loo. Only place I can remember finding a 'normal' loo in baby change is John Lewis. Ikea does at least have large loos you can fit in with a buggy.
Cheaper prices for kids - as already said before, often kids prices are not much less than the adults. Might visit more places if could actually afford it! One idea would be more cinema screenings for young children, i know some cinema chains do discounts for young kids on Sat morning but not one anywhere near us!
Babies/toddlers don't disappear over school holidays - pretty much anything aimed at babies/toddlers stops during summer hols etc - can understand why playgroups etc stop if run by mums with older kids and other helpers need a break at some point but why are the only things offered to entertain kids over the holidays by councils, attractions etc only ever for for older children? Can't see why some stuff for younger kids can't be put on as well, especially as the usual places i'd take them are crazy/busy with older kids. Not moaning about older kids needing entertainment but not sure why is always at expense of younger ones.
Some of the most family friendly places I have come across - John Lewis (friendly and sympathetic staff, good baby change facilities), Ikea (good and cheap food, generally geared up for kids), Pizza Express (good kids menu, welcoming to kids), sure there must be some more but can't think of them at the mo!
Think the idea for an award for most family friendly place is a good one.