I've been visiting my birthplace of Ludlow on quite a lot of Saturdays this year for family reasons. Despite being renamed "Gourmet" Ludlow, by the tourist agencies, there is still a lot of mediocre food around (esp in some of the pubs). There are, however, a number of well regarded restaurants and here are two that that I can wholeheartedly recommend.
The first is Shaun Hill's The Merchant House - simple food, perfectly executed with excellent service. I had sea bass with an aubergine fritter, wild duck with celeriac and an iced walnut parfait. At lunctime the cost is £26 for three courses which includes service ( a cheese course, coffee and drinks are extra of course) Quite amazing value. Book well in advance, there are only 7 tables.
The other place I really like is also very small, It's a Japanese Restaurant called Koo (which is in Old Street). They have a simple lunchtime menu (including excellent gyozo dumlings) and a more extensive menu in the evenings. It's quite a bold venture to open a Japanese restaurant in such a small town (we don't, to my knowledge, have one in Milton Keynes where I live now), and I think it deserves support.
Also, if you happen to visit Ludlow, call in at one of the independent butchers which thankfully seem to be thriving despite the recent addition of a hideous Tesco supermarket to the town centre.