Lawn help

I am looking for help with the front yard of our new house. Apparently there have been chafer beetles in the past few years. The grass is pretty much gone and there just patches of weeds. Not sure what the orange weed is (see pic). Do I just dig it all up and put down grass seed?

 

Can you take a close-up photo of the substrate--it almost looks like it is bare rock or gravel?

 

Here is a closer view of the ground. I noticed there were a couple of spots with more gravel, but the majority is dry soil.

 

It looks like a pretty tough environment for a lawn. I would think you'd be looking at soil amendment ( Choosing a Soil Amendment - 7.235 - Extension ) to increase organic matter before you could consider lawn re-establishment.

 

Thanks for the advice