Blondie guitarist Chris Stein wrote the music for this song and came up with the line "dreaming is free." Lead singer Debbie Harry would often write lyrics after hearing the tracks for the songs, and that's what she did here.
The song starts out with a coherent story - Harry getting propositioned in a restaurant - but it quickly veers off in many directions, simulating a dream where one idea jumps to the next with no real rhyme or reason. It works well with the theme and with the track, including the bridge where Harry repeats the first word of each line:Feet feet, walking a two mile
Meet meet, meet me at the turnstile
A similar structure can be heard in the 1982 Kim Wilde song "Kids In America