True... I worked at 15'th and Arch in Philadelphia in the late 70's when he was Philadelphia's DA. He was a regular in some of the coffee/lunch spots in the neighborhood, and always mingled and chatted it up with us "locals".
Here is the picture that caused the kerfluffle. You can clearly see that not only are they sitting right at a streetside window, but also that he is talking to someone else across the table -- they aren't alone.
The source says they are at the Famous Fourth St Deli, which is a highly trafficked, long-established and very public place just off South Street and the fabric district in the old Jewish area of the city. This story really seems like crap to me.
Rendell has a law degree? I never would have thunk it, whenever I catch him on FOX something really idiotic comes out of his mouth.