Board Thread:General Discussion/@comment-26385535-20150928065746/@comment-1916997-20150929154216

Hmcooper4 wrote: I think ya'll are overthinking this. (No offense). So let me jump in and overthink it some more. :-D

When Regina Hook and the Gang went to find Emma (and save Merida in the process), Granny and the dwarves held back at Granny's to make sure the backup generators were working and everything reasonably survived the journey. As soon as they approached Granny's, we saw Granny coming out to meet them (and letting them know about the Onion Ring Crisis).

Granny was probably back in the Kitchen for the return trip, and when she saw Emma decided it was best to just remain hidden until the storm passed.

Also, remember that Granny's is not just a diner, it is also a Bed and Breakfast. So I could imagine that some of the people used the bedroom portion as sleeping quarters while in Camelot. I didn't think the Bed and Breakfast part came with them, but besides that, I agree that with you that Granny is there and just off screen or in the kitchen.