Spanky's has a great location-it's right on Franklin Street-- and a nice atmosphere, with lots of Carolina students and alumni frequenting the restaurant. I really like the polished oak bar and booths.
The food is pretty good-your typical American style with sandwiches, salads, a couple of pasta dishes, etc. As I recall, the potato salad was a favorite among the last group I went there with.
It's a nice place to meet for lunch with a couple of friends, and wouldn't be inappropriate for a casual business lunch.
I know they have a full bar, but I've only been there for early lunches, so I can't attest to anything other than its existence.