Was on vacation there recently and went to The Hershey Pantry at 801 E. Chocolate Avenue and had one of the best breakfasts I've eaten in a long time. Yummy scrapple too. Don't go expecting chocolate chip pancakes though. Old fashioned home cooking. The omelette was huge. The coffe was nice and strong.
We had dinner at Feniccis Italian restaurant at 102 West Chocolate Avenue and really liked it. I had some pasta dish, can't remember the name, that had sausage and meatballs and bacon and was extremely good. I think it's one of the oldest places around and there seemed to be a casual room where we were with families but also a more formal area for people wh had come in wanting a little bit nicer atmosphere. same menu though.
Hershey has a lot of bad restaurants, a few good ones.
What If? Cafe $$-$$$ has a limited but inventive menu and is reliably good.
Al-Mediterraneo $$$-$$$$ has a larger and more ambitious menu and is good most of the time, but not always
Hotel Hershey Circular Dining Room $$$$-$$$$$ can be very good indeed, but it also can be very disappointing.
Harrisburg has a few good restaurants but they tend to have noisy bars. The $$$$$ Golden Sheath at the Hilton is quiet, elegant and very good.
Sidney $$$, in East Berlin, PA , IMO is the best combination of good food and good value in the region, but is an hour from Hershey.
re: George K
I don't have much else to add - the general assessment is accurate. In Hershey, I also enjoy Fire Alley (yes, it's in a strip mall, but you don't feel that way when inside the rest.) but admit that I have had times that the food leaves something to be desired, so it is hit and miss, unfortunately. I haven't yet been to Piazza Sorrento - I've heard good things, and it is on the list. For an inexpensive lunch, my favorite is Isaac's Deli - a regional chain.
I think there are some very good restaurants in Harrisburg, and I wouldn't dismiss them as noisy bars - a quick search of the board should turn up the most popular. I loved Mangia Qui - quiet, romantic, upscale, amazing food, and, yes, expensive.