He looks like Mr. Krabs with a blue tomato on his nose and a light green tie with green dots. He pretends to be "all about the children" when really, he just wants their money.
Mr. Krabs tells the kids they can meet him if they hand back their coloring books. The kids were waiting to see him and he only told them to buy Krabby Patties, clearly wanting to claim the money in their pockets. Mr. Krabs then puts on a blue tomato and yellow tie with green polka dots. He greets the kids and tells them to eat plenty of Krabby Patties before he goes back into his office which leaves kids and SpongeBob speechless as they were excited to see him. Krabby the Clown only appears as Mr. Krabs for the rest of the episode.
He is a parody of Ronald McDonald from McDonalds and his name is a parody of Krusty the Clown from The Simpsons.