I find it easiest to learn spanish through literal translations from Spanish to English, even though it doesn't always produce the greatest structure.
El restaurante no queda muy lejos de aquí.
I would interpret this literally as:
The restaurant [is] not located very far from here.
The sentence still makes sense without the "located":
The restaurant [is] not very far from here.
Which would be in spanish:
El restaurante no muy lejos de aquí.
Would this sound nonsensical or awkward in Spanish?
I think the lack of a verb(even a linking verb) here would make it sound awkward in the same sense that "The restaurant not very far from here" is pretty awkward in the absence of a linking verb like "is".