After a fight with her husband, Mildred Pierce finds herself alone and caring for her two young daughters. She hasn't worked outside of the home for several years but is excellent at making pastries and sells cakes and pies to friends and neighbors. She would like to work as a sales clerk or a receptionist but those jobs are hard to come by. She has an interview with a Mrs. Forrester about becoming her housekeeper but it's clear that her pride will not let her take such a low position. She finally realizes - urged on by her friend and neighbor Lucy Gessler - that she'll never get the type of job that she wants and settles for a job as a waitress in a hash house. She begs Lucy never to tell her daughters, especially the elder Veda, of the type of work she does.

Mildred brings a sample of her pies into the diner and they're a big hit with the customers. Soon she gets an order for 35 pies a week and the orders start to pile up from other restaurants as well. Veda discovers her waitress uniforms and Mildred is forced to admit what she does for a living. The selfish Veda thinks it's all so degrading. Mildred tells her she plans on opening a restaurant of her own and eventually asks Wally to develop an estimate of what it would cost to set herself up, but he has another idea for her. With a divorce from husband Bert she's able to buy and convert a house into a restaurant. On her last day at the diner, she leaves early to spend time at the beach with one of the customers, Monty Beragon. She returns home the next day to learn that her youngest daughter is seriously ill in hospital.