The restaurant is not oriented toward young people

The restaurant is not oriented toward young people
 

Is this correct?

It's correct. You can also use towards.
I would say it this way: the restaurant appeals to an older clientele.

Which one sounds more natural? The second ine I guess.

Instead of "is not oriented toward young people," you can use "doesn't cater to the younger generation."
Turning it around, like poli suggested, is also possible. "Attracts" can be substituted for "appeals to." "Older clientele" can be changed to "discerning clientele" to avoid the suggestion that only old people would care to patronize the restaurant.

Thank you. If you ever travel to Madrid, let me know !