The 5-Star Krusty Krab was a re-furbished version of the Krusty Krab, which Squilliam Fancyson and his friends came to eat at. This restaurant has very friendly service, and has the qualities of a 5 star restaurant. This was a plot to impress Squilliam. When Squidward told Squilliam he owned a 5 Star restaurant, the Krusty Krew got to work. This restaurant was only seen in the episode "Squilliam Returns". Patrick was a hat taker for the 5 Star Krusty Krab. Patrick thought that he was joining the United States Marine Corps and that is why he is wearing an army helmet.
The downfall of the restaurant occurred when SpongeBob went on a rampage because he forgot his name in an attempt to clear his mind of everything except fine dining and breathing. The Appetizer came to life and the restaurant completely fell apart. The Krusty Krab had now revealed its true identity, and Squidward returned to the life he never wanted. As the cashier at the Krusty Krab.