I don't remember seats or hot dogs at Wally's, but maybe that's because we always just got ice cream cones or (chocolate covered) "frozen bananas" (10 cents) to go.
When I was a child in the late 50s and early 60s, the man who ran Wally's was very nice to me. But when I was at Lincoln in the late 60s, I looked very much the hippie, and the man at Wally's was gruff and rude to me. My girl friend, Linda Walters, was more mainstream looking. When we went into Wally's together, he was nice to her and nasty to me.
The frozen bananas were my favorite memory as a child.