Patchy and Potty are working at a restaurant called "Poop Deck," hoping to be just like SpongeBob. Patchy has new ideas which Potty disagrees with, and after an argument with Potty, Patchy ends their friendship and goes home. He compares himself and Potty to Mr. Krabs and Plankton, starting the SpongeBob Plot.
Later, Potty appears to Patchy and tells him that he is now assistant manager. Potty says that his fancy book smarts got him the promotion, and Patchy thinks it's unfair. When Patchy realizes his food is terrible, Potty tells him that he needs to practice his cooking skills. After a montage of training, Patchy makes his first burger. He tries it and realizes it's just as bad and has it walk the plank (in other words, throw it into the garbage).
Patchy shrugs and says that SpongeBob's first patty probably didn't go so well. However, Potty shows SpongeBob making his first patty and it's perfect on the first try.
Potty then scolds Patchy for his unsanitary environment such as; keeping ground beef in an old boot, having rats in the kitchen, not washing his hands after using the bathroom and not wearing a hair net. Fed up with Potty's criticisms, Patchy starts throwing patties at Potty, but they keep missing, and one eventually hits Mr. Pirateson, the owner of Poop Deck. Patchy then tells the viewers to watch the rest of the SpongeBob episode while he watches Potty get fired.
After the SpongeBob episode is over, Patchy claims he took some time off, but Potty then tells the viewers that Patchy actually got fired, and Patchy gets back at Potty by saying that he got fired too, which is also true (but Potty also got a golden parachute). Patchy then says that they cannot replace him, but Potty tells him that they already did. When Patchy finds out that he's been replaced by a gorilla, he calls it a "smelly, hairy fleabag" which the gorilla responds to by throwing patties at Patchy. The episode then ends.
After yet another attack on the Krusty Krab by Plankton, SpongeBob asks Mr. Krabs why they hate each other so much. Mr. Krabs tells his side of the story, in a series of flashbacks:
Mr. Krabs and Plankton were best friends from birth and did everything together. Both were outcasts, Plankton being a nerd and Mr. Krabs (ironically) being extremely poor. One day, Mr. Krabs finds a penny at the carnival, his first exposure to money, which he spends on a balloon for Plankton. Later, they get enough money to buy a burger from Stinky's Burgers, which, despite having horrible food and literally being located in a dump, is very popular among the local children due to being the only place in town to get a burger. Mr. Stinky refuses to serve them, saying that freaks like them are bad for business, and tells them to "wait" at the back of the building. There, they witness Stinky retiring, having made millions from the stand. Plankton and Mr. Krabs decide to go into the burger business themselves and create their own burger, but no one wants to try it. When Stinky's is closed by the local health department, the two open "Plabs Burgers" on his former site, which the children are now forced to eat at, despite it being even worse than Stinky's.
Plankton says that they are now ruling the stomachs of the children, and soon will be ruling their brains. Mr. Krabs argues that it should be about satisfying the customers, rather than power. Soon, they get into an argument, and Mr. Krabs is ejected into a dump pile and tells Plankton that he will one day regret this.
Plankton comes in and disagrees with Mr. Krabs' story and tells SpongeBob his own version. His story is the same as Mr. Krabs', except that their roles during the fight at the end are reversed, with Mr. Krabs wanting to rule the money of the children.
Plankton and Mr. Krabs begin arguing about the story until Karen arrives and tells the real story:
The restaurant initially has no customers, and Old Man Jenkins is the first to try one of their burgers. Upon taking a bite, he smiles, falls to the ground, and a newspaper appears saying he died. Mr. Krabs and Plankton become angry and accuse each other of tainting the patty. They begin fighting over the recipe, eventually tearing it in two, with Plankton getting the bottom half, which says "...and a pinch of chum." Their friendship is over Plankton storms out to pursue his own career in food. However, during the struggle, a shelf was knocked down, dumping various ingredients into the patty batter, creating the Krabby Patty recipe, which Krabs is left with. The two go their separate ways, each trying to open their own establishment. Mr. Krabs' "Krabby Patty" is great, while Plankton's Chum Burger is horrible.
After hearing the story, Plankton and Mr. Krabs begin to make up and apologize, until Plankton takes the formula from his pocket. SpongeBob and Mr. Krabs start chasing Karen and Plankton in circles as the episode ends.
In the scene where the scene pans through the customers eating at Krusty Krab at the beginning of the SpongeBob episode, Mr. Krabs is looking left instead of right.
After SpongeBob says, "Don't forget your condiments, Plankton," Plankton's cake ship flies around and Plankton says "Curses!"
When SpongeBob says, "Why, Mr. Krabs? Why does he hate us so?" SpongeBob was next to Mr. Krabs, not in front of him.
When Mr, Krabs says, "Well, you might as well blame me, SpongeBob," there was a time when Plankton and I were best friends," Mr. Krabs is holding SpongeBob and then walks over to a table and sits down.
In the scene with the kids laughing at Plankton after a kid hits Plankton with a spitball, Young Man Jenkins does not have his hair.
It should be noted that he did in the original pan of the class, so it was likely just an animation error.
When young Sheldon says, "Idiots," the test tubes are being held horizontally and some of the liquid is on the desk.
This was mostly removed because the result of mixing the two chemicals is an explosion.
When young Sheldon says, "I'll show you," one of the test tubes is horizontal.
When the chemicals explode, the exterior of the school is not shown, it is just an explosion cloud.
After young Eugene says, "Buy things?" the image flips.
When Stinky Burger is shown in a wide shot, there is writing on the order window door.
Stinky's hair was originally a vertical block, instead of rounded hair.
When Stinky breaks up the fight about whether the kids respect or like him, he waves his arm vertically in the air, instead of in front of him.
The second outfit that Sticky wears did not originally have the medallion.
When young Sheldon evilly laughs for the first time, it looks different than the final product.
When young Sheldon is exercising, his arms don't move.
In the entire grand opening scene, Sheldon and Eugene have hats.
When the kid says, "Hey," Sheldon and Eugene have their arms up.
In the scene where Plankton leaves the pepper shaker when he leaves the shaker and stand on the table.
When Plankton says, "Most of its true, except what really happened. We had created the tastiest burger," he is not wearing the pepper shaker "hat."
When Old Man Jenkins is knocked out, he is shown next to his car.
The original headline for the Old Man Jenkins story in the Bikini Bottom Weakly is "Plab Patties KO Old Man Jenkins."
When Sheldon leaves his and Eugene's restaurant the part of the recipe is his left hand.
Whenever the Chum Bucket bucket is shown, there are flies around it.
This was most likely removed because flies don't exist underwater.
The result of Big Johnny's barf is worse in the animatic.
The episode uses the Rashomon Effect, which is the effect of the subjectivity of perception on recollection, by which observers of an event are able to produce substantially different but equally plausible accounts of it.
This was also the last episode to be written by Tim Hill.
The fish who said that they don't like Stinky and that they respect him has similar colors and clothes to Tom. He could even possibly be him as a child. Johnny (the fish who tried Plankton's burger at the end of the episode) also has a similar appearance and clothing.
Plankton could have gotten the ingredients from the security footage but instead, rather steal the recipe for the Krabby Patties; this implies he has a code of honor, or just didn't know about the footage.
When Johnny was trying out the Chum Burger, it only had buns and a chum patty but when he was throwing it out, it had tomatoes, lettuce, and pickles. Although the vegetables are in the chum to not be confused.
All this time, despite the recipe calling for only "a pinch of chum," Plankton's been making food entirely out of chum.
This is the first appearance of mobile version of Karen in the show.
In this episode, Mr. Krabs reveals one of the ingredients by saying to Plankton, "It was you who put to much seaweed sauce," since the batter was not replaced this is an ingredient in Krabby Patties.
As of this episode, there is no ambient water effect heard in the background.
This episode reveals Mr. Krabs and Plankton's friendship.
There is numerous evidence that makes the origin of the Krabby Patty Formula, and maybe the entire episode, non-canon.
First, unless Mr. Krabs knew exactly what the containers contained and how much of it there was in each container, there is no way he could duplicate the recipe, unless, he used science to figure out how much of things there were in the patty.
Second, in "Enemy In-Law," Mr. Krabs says that it is a family recipe.
Fourth, in "Patty Caper," some agents were supposed to give SpongeBob the secret ingredient for the Krabby Patty. It is very unlikely that a recipe made by a cheapskate would be important enough to get agents involved. It is more likely that King Krabs or another powerful Krabs family member set up this system.
In the trailer for The SpongeBob Movie: Sponge Out of Water, it is highly suggested that the Krabby Patty formula is the missing piece of the book that the pirate finds. If this is true, it is unlikely that an old book could predict something that would happen underwater in the 1940s or 1950s. It is more likely that the book was created in a time of magic by a magician hired by King Krabs.
When the young Mr. Krabs says, "What in Neptune's name is that?," Sandals was eating popcorn in the background, but disappears and transports to the end of the screen.
When Plankton says his story, the hole in the ceiling is still there even though Mr. Krabs was ejected through the ceiling and Mr. Krabs threw him by the window.
In this episode, Mr. Krabs, with some help from Plankton, made the Krabby Patty, but in "Enemy In-Law," Mr. Krabs says the Krabby Patty recipe is a family recipe.
It is possible that the Krabby Patty that Mr. Krabs made in Friend or Foe is not the one he sells in the present day.
The pictures of Plankton as a baby show that he is normal size, however, in "Goo Goo Gas," Plankton was shrunk to baby size and turned microscopic.
Squidward and the other customers disappeared after the second part.
It may be possible that they left during the story.
Mr. Krabs is a kid in this episode, but his mother still appears old.
When Mr. Krabs and Plankton finished their burger, it had nothing between its buns except for a patty but later they reveal it with two patties and lettuce. While approaching Stinky Burgers, it had a single patty and a slice of cheese.
Mr. Krabs said that his first dollar was from selling his and Plankton's patty, but when Stinky drove off, he took a dollar that flew off of his limo. However, he could have meant it was his first dollar that he earned.
When Karen enters the Krusty Krab, SpongeBob's hat was on, Karen entered, the hat was gone, Karen rolls up, and the hat is back on SpongeBob's head. This may be because Plankton was on SpongeBob's head.
The first time Mr. Pirateson appears, he has two hooks but later, he has only one hook.
In the first half, Plankton's mouth is red, but in the second half, it is similar to "New Leaf" and "Best Frenemies."
In the flashbacks, Mr. Krabs' eyelashes disappear a few times over the course of the episode, including when he and Plankton look in the oven when making their burger.
In the part where Patchy makes the patty walk the plank and right after the SpongeBob birthday video, Potty's assistant manager clothes are gone, but right after Patchy and Potty make weird faces at each other, Potty's assistant manager clothes are on.
When Old Man Jenkins first appears in the episode, he has green skin with a red hat. However, when he tries the new burger, his skin is tan with a blue and white striped hat.
It is possible that Mr. Krabs remembered Old Man Jenkins incorrectly and Karen's video is correct.
When Mr. Krabs began his story, he took a barrel and sat on it, but from the scene where SpongeBob returns from getting the formula to the end of the episode, Mr. Krabs is sitting next to a table.
This might be explained by the original animatic scene of Mr. Krabs grabbing the barrel. In the original, he walks to a table instead of grabbing a barrel. It is possible that this scene was accidentally replaced by the barrel scene.
Karen has footage of the burger fight at the elementary school. There were no known cameras in the scene.
Mr. Krabs has the pencil only for the part where he pushes the formula away with the pencil.
At one scene, Potty's uniform was missing after a few minutes, it came back on when Patchy was mad.