It looks like a giant ship-in-a-bottle. It also has a giant sign at the top that says "Fancy!" in red on it. It is presumably on the opposite end of town from the Krusty Krab, seeing as Mr. Krabs mentions it being "some place far away."
There are cushioned seats alongside tables, as well as a long kitchen which can withstand many chefs.
I can turn into a skyscraper!
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In "Krusty Love," Mr. Krabs and Mrs. Puff went on a date at this restaurant. When the $100 bill came, Mr. Krabs nearly had a heart attack, and when the bill turned out to be someone else's (his bill was actually $100,000), Krabs screamed at the top of his lungs, destroying the restaurant.
In "Chocolate with Nuts," SpongeBob, Patrick, Mary, and her mother went to the restaurant. Using the money SpongeBob and Patrick got from Tom selling chocolate, they booked out the whole restaurant just to dine there, ruining Squidward's only night to be fancy.
In "Le Big Switch," SpongeBob worked here as an exchange chef. Since making Krabby Patties is SpongeBob's life, it was the only thing he could make, but the upper-class diners at Fancy! loved them. By the time the chef exchange program was over, the Krusty Krab had gone bankrupt, but SpongeBob arrived back just in time, bringing back the Krusty Krab customers and the diners at Fancy!. It is revealed that the main chef of Fancy! is Le Schnook.