While making a batch of Krabby Patties, SpongeBob is fooling around with the extra meat. He molds it into the shape of a hot dog, cooks it, and introduces it to Mr. Krabs.
When SpongeBob shows Mr. Krabs how he cooked it, Frank comes in to look at where the employees were. He sees it was new and spread the word about it. In no time, there were many orders, enough to actually prevent the customers from eating Krabby Patties. Mr. Krabs crosses the patties off the menu and takes away SpongeBob's spatula and grill, much to the latter's devastation. He even renames the restaurant the "Krusty Dogs."
Then SpongeBob and Squidward plan to get the customers to desert the restaurant in order to get Krabby Patties back. They are successful, but Squidward is still humiliated about the mascot costumes, as he later had to wear a Krabby Patty one and ends up getting even more humiliated.
SpongeBob becomes shocked when Mr. Krabs says that the Krabby Patties are gone. After many plans, he thinks of a plan to get them back. He over-inflates one and the customers think it is explosive. The customers then demanded that Krabby Patties be brought back, which Krabs does, and the restaurant goes back to normal and Krusty Dogs are discontinued at The Krusty Krab.
On the 2014 independence day celebration (July 4), the Krusty Dogs were sold at the Krusty Krab.