They aren't doing any magic beyond what can be done in Photoshop. You can read yourself in the FAQ:
What photo restoration tools do you use to restore my images?
Our restoration team is expert in the use of Adobe Photoshop.
What training do your photo restoration technicians have?
Our artists have been through formal training in color concepts, restoration tools, image enhancement techniques, highlight/clipping management, grain reduction and calibration routines. They are proficient and expert in Adobe Photoshop and Corel Draw. All artists must pass ScanCafe's proprietary restoration skills test prior to working on customer images.