MacFadden based the concept on a similar business he opened in the winter of 1902, located at City Hall Place.

From its opening on December 29, 1931, Penny Cafeteria served meals to 2,500 to 3,000 customers per day.

On opening day, the restaurant offered cracked wheat, Scotch oatmeal, lima bean soup, green pea soup, soaked prunes, seeded raisins, whole wheat bread, butter, raisin coffee, and cereal coffee.

Food was sold at about cost and was provided twenty-four hours daily when demand warranted.

On its first day, July 1, the establishment served more than 900 needy youths.