In Aug. 2003 we had a late PS for CP and were one of the last seated. They did prepare for lunch while we were still there, but we had the best interaction with characters. Breakfast food is available, but they will reduce it to one side. The food remained fresh, nothing was stale. I think they started seating people for the lunch PS just as we were preparing to leave and they sat them at the opposite side of the restaurant.
I'm a slow eater and I did not feel hurried or rushed. Nor would I allow myself to. There were a couple other families around us who felt the same way. They took their time, enjoyed their meal, enjoyed character interaction without being rushed.
HTH!