Update: Such a bummer that this restaurant decided to start serving meat. They also removed from their menu some of their former vegan specialty items like vegan nachos. Since it was already inconsistent, I find myself visiting less often since their addition of meat entrees.
Original review: I've been to Fair Grounds many times since it's one of the few vegetarian eateries in Iowa City. It offers a relaxed atmosphere, lots of tables for reading and socializing, and a couple of couches for relaxing. My favorite items on their menu are the breakfast burrito, grilled hummus sandwich, and the vegan super nachos. (It would be great if there were an option to add beans to the nachos to make them more substantive.)
In my experience, the service has been really hit and miss. Most of the time, it takes a very long time for the food and coffee to arrive. By very long, I mean that I've waited as much as 40 minutes for a breakfast burrito, even when the place is fairly empty. I tried going during work for lunch once, and after a half an hour, I had to take my food to go. Now I only go when I have lots of time to spare.
For their baked goods, they offer vegan cupcakes. I've been there when the cupcakes have just arrived, and they can be really good. However, the case they keep them in is very cold, and it dries them out.
Updated from previous review on Tuesday May 22, 2012
Cons: Slow service, Dried out cupcakes, Started serving meat