The dining rooms, which had tablecloths at dinner time, and later had separate standing bar areas, were supplemented by fountain service lunch counters, separate rooms in which were displayed for sale Schrafft's branded candy and ice cream, and various items such as wrapped gift baskets of fruit, candy and stuffed toys.

[2] By 1909, Jane introduced meals to the second New York City Schrafft's, at 54 West 23rd Street in the heart of the Ladies' Mile shopping district.

Rent cuts in the Great Depression encouraged chain expansion, and by 1937 there were 43 Schrafft's, primarily in the New York metropolitan area, and several others in Boston and Philadelphia.

In 1939, WPA Guide to New York City said Schrafft's had 38 locations in the metropolitan area, serving American home food.

In the late 1960s the Schrafft's candy company was sold to Helme Products while Pet, Inc. bought the restaurants in 1967 for US$14 million.