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Kate and Owen's Date

Mar. 25 2009, Updated 9:35 a.m. ET

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After keeping their reportedly rekindled romance under wraps, Kate Hudson and Owen Wilson seemed ready to go public with their relationship. The pair stepped out on Tuesday for a late lunch at 3 Square Café + Bakery in Venice, California, an eyewitness tells RadarOnline.com. The cheery couple arrived together around 2:30 pm for a bite at the Abbot Kinney Boulevard café.

Hudson and Wilson have been on-again and off-again for almost two years. They split again last summer, but according to recent reports, have started dating again. Friday night, they were spotted sharing dinner at Casa Vega in Sherman Oaks, CA and last month, were seen traveling together in France.

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During the Tuesday outing, our source says Owen and Hudson "were happy," and were "laughing and sweet to the people asking for autographs." The gracious couple even stopped to sign the cake box of one fan who was celebrating a birthday at the restaurant. Talk about a happy birthday!

(Photo: Splash News)

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