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I work at and live near F&M. All the comments below are spot on. Lancaster Brewing Company is on the other side of the city. Food is good, but I would only choose it over the others if you're looking to try good beer (although you can always go to Iron Hill for that). Two places I would also recommend on Columbia Ave (1-2 mile drive) are Hong Kong Garden, for Chinese, and El Serrano, for Latin-American. For breakfast, try Wish You Were Here on Orange Street:
http://www.wishyouwereherepa.com
And if you find time to go to Central Market on Friday or Saturday, please do. Ric's Bread has great baked goods and Mean Cup has, well, a mean cup of joe.
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I can't believe I forgot to mention Iron Hill Brewery, also located right across the street from campus. It is a regional chain, if you aren't from the suburban Philly area, and I think that is why it is often overlooked. I have personally had very good food there and enjoy the beer they brew as well.
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Checker's Bistro on James Street at Mulberry, just East of Campus is great for its small plates and, especially at the bar, attentive service.
Doneckers is toast. Gibraltar is consistently good but higher priced for this market. Carr's is consistently good but not as close to campus as either Checker's or Gibralter. Lancaster brewing is a bit distant as well. I haven't been compelled to go there in sometime but my recollections are good. Doc Holliday's is a college oriented (has a game room) steakhouse but does all right.
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When I'm in that neighborhood, I always enjoy Gibraltar, right there on campus, for great seafood.
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