First, the Doughnut Plant (see my previous post) is located there.
Second, you can buy some of those donuts and enjoy them with a good cup of coffee by strolling a few blocks over to 81 Orchard Street, where the Roasting Plant coffee bar is located. (Its beans are fresh-roasted only 15 minutes away in a building in Greenwich Village.) I really liked the sign they posted outside -- see above.
Next door, at 79 Orchard Street, a fun and cozy restaurant called Cafe Katya serves Austrian food. Prices are reasonable, especially for NYC.
An interesting sidebar: by 1905, this block of Orchard Street was the most highly populated block in the world -- a stretch of tenement buildings that were overflowing with newly arrived immigrants. The Tenement Museum is located further north on this block.