The franchise converted the old-fashioned Krusty Krab into a modern-looking factory. Automatic registers were used to handle money and were un-manned. There was a large TV with a sports channel. In the kitchen laid a conveyor belt used to disguise gray, sloppy material as food. In the same room, the sink was used to clean the dishes. Another room was built as an office for Human Resources.
The establishment seemed to express a "sincere" atmosphere to its customers but was revealed to be a very strict business. Employees would be forced to act friendly, or they would face Human Resources, which is a tough enforcer.
"Sincere Service with a Smile!"
When Mr. Krabs retires, Howard Blandy takes over the restaurant. After Mr. Krabs sees how much he had changed the restaurant, Squidward being forced to be friendly, Synthetic Krabby Patties being made by machines instead of being made by hand, and an automated cash register, he destroys the computerized cash register and the restaurant equipment in a fit of rage, and Carl calls Howard Blandy.
They make a truce and the customers get scared by the fact that the patties are made by a substance made out of a gray sludge that was painted and shaped to look like Krabby Patties.