I don’t think you can use credits for tier 1. Tier 2 uses 2 table service meals for each person which worked out since we didn’t use a TS meal on our arrival day.
It’s like any other restaurant there, they ask if you have a dining plan up front. They’re very aware of the package thing. I think it showed up on our reservation in the computer. We got a 3 course meal w wine and just paid the tip. They give you a receipt and walked us through how it works w the dining plan. Final receipt had everything we ordered with big zeros next to each one. So satisfying to see it would have been about $250.
They were great w the kids, the bartenders even talked to my 3yo about the hot lava on the floor and “don’t step on the cracks!” as he sloooooowly made his way to our table (and he was totally trying not to step on the cracks).
There were other kids in there too but not crowded or loud. Quite spacious really. After a full day at AK we happily stayed in there for 1.5 hrs.