It is still a counter service restaurant, but there are now characters there so it is quite a bit more expensive than your average cs. It is also only open for lunch because they have the character tea party there later in the afternoon which is a buffet of cakes and pastries.
If you wanted to go it is quite popular so I would advise booking.
They don't allocate a table as such but they have someone on the door limiting the number of people who can go in. I assume this is to make sure that everyone can have a table. They also take bookings now like the table service restaurants.