In first grade, my principal read this to my class and I've loved the book ever since. This is truly a classic that can be enjoyed way past outgrowing most picture books. There's plenty of story behind the book and lots to read. The illustrations are beautifully detailed, providing lots of opportunities and stare and look for funny situations scattered throughout the pages.
The food tie-ins for this are endless, almost every page has an idea. There's plenty of breakfasts--imagine a bedtime story with an accompanying storybook breakfast for a special morning. Pancakes and your usual eggs and bacon, or if you've never tried cream cheese and jelly, it's a delicious combo! Think fruit and cheese, it's a yummy contrast of sweet and fresh with salty and rich. (Like watermelon with colby jack, just had some last night)
A wonderful development here is the recent 2009 movie adaptation. While the story strays from the book, it ties in some nice lessons against overeating and being true to yourself. It's a good kid-friendly film and very bright and pretty to watch.
Scholastic has a nice book discussion guide online here: http://www2.scholastic.com/browse/article.jsp?id=3752259 I think the question about the pros and cons of living in Chewandswallow would get some creative and unexpected answers!