The Krusty Krab is a fast food restaurant located in the city of Bikini Bottom, founded and owned by Eugene H. Krabs. It is the most popular restaurant in Bikini Bottom. Mr. Krabs loves money, and is openly concerned only with making money and because of this, he pays his employees very cheaply (but SpongeBob doesn't care), and sells his food for expensive prices.
The reason the restaurant is so popular is because of the Krabby Patty, a burger with a very top secret recipe, which has almost always been the signature Krusty Krab dish. Other Krusty Krab grub includes typical fast food products such as French fries and sodas, as well as underwater foods such as "Coral Bits " and "Kelp Rings."
SpongeBob loves his job and is great at it, while Squidward hates his job and is terrible at it. The two employees work great together (according to SpongeBob) and terribly (according to Squidward); Squidward hates SpongeBob while SpongeBob thinks he is one of his best friends. The Krusty Krab's main business competitor is the Chum Bucket, owned by Sheldon J. Plankton, Mr. Krabs' worst enemy and former best friend.
While the Chum Bucket, the restaurant's only competitor usually fails, there have been some short times when the Chum Bucket was not failing. These infrequent short periods of time are the only times when the Krusty Krab has any competition. Stephen Hillenburg's original name for the Krusty Krab was the "Crusty Crab," but he decided that the intentional misspelling the "C"'s for "K's" was funnier.
The building itself may have once been an old New England lobster trap, since it greatly resembles one. The original owners may have found the trap lying at the bottom of the ocean, and fixed it up and turned it into a building. Another theory is that the building could have been purposely designed to resemble a lobster trap so it could look more nautical than a regular building.
According to "Krusty Krab Training Video," the Krusty Krab was born when Mr. Krabs, who had been secluded in a deep depression after serving in the military that seemed endless, acquired a bankrupt retirement home called the "Rusty Krab". However, a later episode, "Grandpappy the Pirate," directly contradicts this, depicting that Mr. Krabs was once a seafaring pirate as a preteen and that the Krusty Krab was originally his ship.
However, it is said that after retiring from piracy, Mr. Krabs sold his ship. He could have purchased the retirement home after this, and it could have been just a coincidence that it was called The Rusty Krab and had the same shell sign as Mr. Krabs' ship.
In "Friend or Foe," which revealed the origin of Mr. Krabs and Plankton's rivalry, it is shown that Mr. Krabs first went into the fast food business in his childhood. The Krabby Patty secret formula was created when a shelf was broken during Krabs and Plankton's struggle, causing various ingredients to slide into the patty batter. However, other episodes, most notably "Enemy In-Law," state that the Krabby Patty and its formula is a family recipe, like in "Dunces and Dragons," which shows that the Krabby Patty was first served in medieval times by King Krabs, an ancestor of Mr. Krabs, who was introduced to it as a result of SpongeBob and Patrick's time traveling. As for salaries, Squidward and SpongeBob, the only two employees besides their boss Mr. Krabs, have varying salaries depending on the episode, and are mostly for the joke. In some instances, they are paid an actual (if not minimal) paycheck, while some other instances show that they actually are to pay Mr. Krabs (This is most notable in the episode, "Squid on Strike," where Squidward is forced to pay for his services). Another episode shows they are paid only one nickel (5 cents) a day, according to an episode in which Squidward mentions this fact and SpongeBob can not stop laughing. Another recent episode shows that Mr. Krabs pays SpongeBob with "Wacky bucks", a fake currency which obviously has no value, obviously just for a gag. In yet another episode, SpongeBob states that he had to pay Mr. Krabs $100 an hour when he first started working.
Design and Features
The Krusty Krab building has a wooden chassis with glass windows/walls and appears from the outside as an old lobster trap. There is a large clam-shaped sign in front of the building, similar to those used by real-life fast food restaurants, and five International maritime signal flags above the front door. There is a pole outside its right window as seen in the episode "My Pretty Seahorse." It shares resemblance to a New England lobster trap. It might have just been built to look like a lobster trap, but it is also possible that it was actually formed from an old sunken lobster trap.
There is no parking lot, although boats always park there. No one will ever know how so many customers can fit inside the Krusty Krab, when there are no cars, but most customers walk to The Krusty Krab, as seen in many episodes including the Krusty Krab.
The Drive Thru is seen throughout the first four seasons, but its most notable appearance was in the episode "Driven to Tears" when Krabs introduces it to SpongeBob. It was removed until the episode, Drive Thru," when an unrepaired hole was mistaken for a drive thru, causing chaos in the Krusty Krab. Its purpose was to serve travelers and tourists that did not have time to eat at the Krusty Krab. In "Driven to Tears," it resembled a modern drive thru, but in its latest appearance it was cheaply built. It used tin cans with string for microphones, old napkins for a menuboard, and a bent noodle for a sign. The Drive Thru was gotten rid of after it caused chaos in the Krusty Krab. There's another Drive Thru on the backside of the restaurant which only appeared in The SpongeBob Movie: Sponge Out of Water when Sandy was wording Krabby Patties.
Like other buildings in the series, the Krusty Krab's interior design is sometimes highly inconsistent between episodes. The Krusty Krab's basic floor plan consists of one main eating area, with the kitchen, Mr. Krabs' office, and bathrooms in separate rooms at the back of the building. There is also a crow's nest located in one of the pillars.
The order stand consists of a small boat directly in front of the window leading to the kitchen.
To go with the show's nautical theme, the Krusty Krab bears a striking resemblance to a New England lobster trap. When you first go inside, there is the main eating area, which is one of the largest rooms. The tables are made out of sailing ship steering wheels, with barrels as chairs. Near the kitchen door is the order station, where the cash register is and where Squidward works, taking people's orders, and giving them to SpongeBob through the order window which is shaped like the bow of a ship. In some episodes, there is a salad stand near the order window, and a "Condiment Island" stand, with ketchup and the like. At the back of the building is a lot of rooms, which are very inconsistent but mostly correct in the following order. In "Krabs à la Mode," a thermostat was shown in the Krusty Krab. Mr. Krabs installed a ceiling fan in "SpongeBob vs. The Big One." It also has a small area in between the roof of the kitchen, Mr. Krabs' office, and the bathrooms, which appears to be a storage area. It was featured in "Penny Foolish," when Squidward sat on a box holding a flashlight over Krabs, and in "Truth or Square," when the crew broke a ventilation vent in order to get of the air ducts. The Krusty Krab also features a "lock down" mode, in which metal plates guard the doors and windows.
On the far left is Mr. Krabs' office, with a money safe, a desk made out of an old sea trunk, chairs, pictures, money on the wall, etc. There is also a door to the kitchen, so Krabs can check on SpongeBob. The safe is also usually where the secret formula to the Krabby Patty, and Mr. Krab's money is hidden. The safe is located on the wall.
The kitchen is SpongeBob's station where he makes the Krabby Patties and stores his cleaning supplies. It has a grill for cooking patties. There are storage cupboards for ingredients. A window is seen, which is used to place orders and to serve them once they are done. The kitchen is commonly used as storage. In some episodes, it is vast, holding a "Patty Vault" full of Krabby Patties, a freezer that Squidward was frozen in for 2000 years once, and many other hallways and rooms. Also, as seen in "Planet of the Jellyfish," the freezer now holds cases of mayonnaise. It had a refrigerator before it was in "Pat No Pay." According to the episode Restraining SpongeBob, the kitchen's width is about 15 ft.
There is one restroom located on the far back right of dining room. It has urinals, toilets and sinks. A sign saying to wash your fins can be seen written in both English and Spanish. In most episodes, there are two or sometimes three stalls.
Other interior features
Most notably in "Truth or Square," there shown to be a lot of nooks and crannies in the Krusty Krab, like a massive ventilation system. That system also has a surveillance room where there are computers that spy on every house in Bikini Bottom. In various episodes, it is shown to be host to several secret passages and rooms. Some examples are found in "Truth or Square" and "Chum Bucket Supreme".
Apart from its excellent food, the Krusty Krab exhibits many of the undesirable qualities of real-life fast food restaurants. It is dirty and cheaply maintained, and the building is sometimes shown to be in a state of disrepair. This is shown by the "faulty wiring" and green slime oozing from the walls in "Graveyard Shift."
In the "Krusty Krab Training Video", basic features of modern fast food restaurants implemented by the Krusty Krab are described as "the latest achievements in fast food technology" and given extravagant descriptions. This "technology" includes:
The Galley Grub is the menu of the Krusty Krab. The menu is shown differently in almost every episode that it is shown in. The menus contain meals, sides, and beverages. The Krabby Patty is present on every menu ever shown being it's main meal and the only food to be so. The menu also once (it is unknown if this is included in every single episode) had it written with very tiny words, almost impossible to read without a microscope "Money Back guarantee;" however, it has only happened once that anyone has used this guarantee to demand the money back.
Policies and disclaimers held by the Krusty Krab for the employees include:
The Krusty Krab Employee Manual; Second revised edition; page 35; section 19; Clause 3A: All staff must remain on the premises until the day's receipts are fully accounted for. This is seen in "Can You Spare a Dime?."
The Krusty Krab Employee Manual; Second revised edition; page 35; section 19; Clause 3B: The proprietor reserves the right to be unfair. This is also seen in "Can You Spare a Dime?".
Think of the customer.
We serves all kinds. This is seen in "Bubble Buddy."
Everyone's money is good (an escaped convict with a sack of stolen money is shown eating a Krabby Patty). This is also seen in "Bubble Buddy."
The customers' jokes are always funny. This is seen in the episode "Sponge-Cano."
Krusty Krab Rule book; Rule #2: Never disclose the location of the secret formula! This is seen in "One Coarse Meal."
Employees are granted a discount on purchased items. This is seen in the episode "To Love a Patty."
Employees can have worker's compensation: Employees get paid while they're at home. This is seen in "The Splinter."
Policies and disclaimers held by the Krusty Krab for the customers include:
Krusty Krab policy clearly states that once the patty has reached the customer, it is his / her responsibility. This is seen in "Born Again Krabs."
Money back guarantee (seen only in microscopic print). This is seen in "Pickles."
Policies and disclaimers held by the Krusty Krab for both customers and employees include:
The Krabby Patty formula is the sole property of the Krusty Krab and is only to be discussed in part or in whole with its creator Mr. Krabs. Duplication of this formula is punishable by law. Restrictions apply, results may vary. This is seen in "Imitation Krabs."
No outside beverages. No exceptions. This is stated in "Best Frenemies."
Due to Mr. Krabs' cheapness, the Krusty Krab is rarely shown to have any significant advertising, but has on several significant occasions. One of his methods of advertisement seen in the episode "As Seen on TV" was commercials.
Squidward is the director at first, but when Krabs sees the insane values of Squidward's commercial, he fires the crew and directs an extremely cheap and poorly made commercial using only himself, his employees, and his daughter. The commercial was shown in the "prime time slot" of 3:28 AM, and featured Pearl and Squidward playing teenage girls getting their first Krabby Patty from Mr. Krabs. SpongeBob made only two partial cameos in the commercial, but was extremely excited to see himself on TV and believed that he was now a celebrity. In the commercial, the Krusty Krab's slogan is jokingly shown to be "Come spend your money here!".
A Vintage Krusty Krab commercial was seen in "Truth or Square."
In order to attract new regulars into his restaurant, Krabs advertised his business in a local newspaper in extremely small print (so small that anyone would need a magnifying glass to see), as seen in "The Krabby Kronicle."
In "Mermaid Man vs. SpongeBob," Mermaid Man and Barnacle Boy are hired to promote the restaurant, appearing in TV commercials for it. Kids meals are produced featuring Mermaid Man and Barnacle Boy toys. In "Bummer Vacation," SpongeBob is shown to own a Krusty Krab play set, which includes figures of SpongeBob, Patrick, Krabs, and Squidward. In "Yours, Mine, and Mine," it is seen to have a toy made out of the Krabby Patty, which SpongeBob calls a Patty Pal. In "Born Again Krabs," Krabs sells Bikini Bottomite action figures until he realizes he is awake.
Krabs has done more than twenty five scams to try and get as much money as possible. His most villainous scam so far is the Jelly Patty scam in "Jellyfish Hunter".
Other than Mr. Krabs himself, the Krusty Krab has only two full-time employees: The fry cook, SpongeBob, and the cashier Squidward.
Squidward is the cashier, and stands in a boat taking orders for the entire work day. Squidward has also served as a fry cook in various episodes, including "Bubble Buddy", "Pickles" and in "Breath of Fresh Squidward." Squidward hates his job, the Krusty Krab, Krabby Patties (Unless if you're watching "Just One Bite"), and his peers at work. Despite his dissatisfaction, he makes little effort to find a different job, and has attempted to quit on only a few occasions, most notably in "Can You Spare a Dime?". The possible reason for his hatred to his job is having to work with SpongeBob (who in some episodes such as Restraining SpongeBob and Squid on Strike) has gotten squidward injured or in trouble with Mr. Krabs. The other possibility is the fact that despite his work it has been shown that even SpongeBob (the better worker) gets paid very little and knows that Krabs would be too cheap to raise his pay despite his work effort.
SpongeBob is the fry cook of the restaurant. In "The Original Fry Cook," Jim, quits after Mr. Krabs refused to give him a raise. He first applied for the job in "Help Wanted", the pilot episode of the series. Mr. Krabs and Squidward, wanting no part of him, sent SpongeBob on a fool's errand. While he was gone, an enormous crowd of anchovies stormed the restaurant, nearly killing Squidward and Krabs. When SpongeBob returned, he demonstrated his superhuman fry cook skills, serving all the anchovies, saving Squidward and Krabs, and securing his job. SpongeBob has been assigned other duties in various episodes, including has janitorial duties, "co-cashier" in "The Algae's Always Greener", "Parking Lot Litter Patrol" in "SpongeBob Meets the Strangler," "well money-retriever" in "Wishing You Well," and Lead Reporter for the Krabby Kronicle in "The Krabby Kronicle." At the end of The SpongeBob SquarePants Movie, SpongeBob is hired as the manager of the new Krusty Krab 2. According to the episode "Stanley S. SquarePants," SpongeBob's exact job title is "Vice Assistant General Manager in charge of certain things". It has been shown that he takes his job very seriously. As shown in Pizza Delivery he nearly gets both himself and Squidward to starve and get sucked into a tornado when refusing to relinquish the pizza showing that he'd rather get both himself and Squidward killed then go with even one unsatisfied customer. He also seems to care less up to the point of obliviousness about Mr. Krab's utter cheapness despite the fact that he pays them very little and has numerous times put his employees into physical harm in hopes of making even a small amount of money.
In various episodes, the Krusty Krab has hired additional employees. None maintain their job for more than one consecutive episode.
Patrick has worked at the Krusty Krab in several episodes. He was first hired at the Krusty Krab in the episode "Arrgh!", only to be immediately fired (and again later for the second time). He first properly worked at the Krusty Krab in "Big Pink Loser". In "Squilliam Returns," Patrick is assigned the role of hat-taker when Squidward takes over the restaurant to impress Squilliam. In "Bummer Vacation," he took SpongeBob's job as an unpaid intern during his forced vacation. In "That's No Lady", Patrick, disguised as "Patricia", becomes the waitress of the Krusty Krab. In "Banned in Bikini Bottom," Patrick works as the bouncer to the secret Krusty Krab. In "Pat No Pay," he is forced to work at the Krusty Krab in order to pay for the numerous Krabby Patties he has eaten and failed to pay for. In "No Hat for Pat," Krabs wanted to have tourists eating at his restaurant but had no luck. He found Patrick standing outside doing nothing and wanting a hat, he applied for the job to advertise the Krusty Krab. He made no success but obtained his hat and started falling to the ground, bringing tourists and more customers. His falling made Krabs find more things to fall into and when the customers see that two were about to hurt themselves only Squidward did and stripped Krabs from his money earned thus firing Patrick.
Gary served as a waiter for the secret Krusty Krab in "Banned in Bikini Bottom." He also worked as a referee when a hockey team practiced in the frozen Krusty Krab in "Krabs a la Mode." He was also the "cleaner of the ick" in "Fungus Among Us." In "Shellback Shenanigans," Gary serves in sentry duty to prevent Plankton from infiltrating the Krusty Krab.
Charles worked at the Krusty Krab without Krabs knowing in "Welcome to the Bikini Bottom Triangle." While he was "holding down the fort", he somehow caught Plankton during Krabs and the Krusty Krew's absence.
Frank was once hired by SpongeBob, the Krusty Krab's temporary manager. In "Gullible Pants," Squidward told SpongeBob a false secret stating that Frank wanted a job as a fry cook. The gullible sponge gave him the job, and Frank thought that SpongeBob knows his secret, making him think that SpongeBob was threatening to reveal it. He did what the sponge says and cooked Krabby Patties as Squidward gives him more false secrets.
After replaced with Karen 2 by Plankton in "Karen 2.0," Mr. Krabs took Karen to the Krusty Krab after being thrown on the streets. Later, when Karen decided to forget about Plankton, Krabs hired her as the cashier, making Squidward the janitor. Not long after, Karen 2 and Plankton visited the Krusty Krab where the two computers had a fight, Karen reigning supreme. After having a brief shut down, Plankton took Karen back to the Chum Bucket, thus putting Squidward back into his position as cashier, in which Krabs used the remains of Karen 2 to dress Squidward up to attract more customers.
Mrs. Puff worked at the Krusty Krab only in "Summer Job." She accidentally smashes through the front door of the Krusty Krab with her boat and Mr. Krabs decides to have her work unpaid until the damages are fix. Mrs. Puff mainly takes over Squidward's job at the register and Krabs assigns SpongeBob to look over her. Having enough of SpongeBob bossing her around, Puff storms out of the Krusty Krab and prepares to drive off, but a policeman arrests her for littering (she just threw SpongeBob's note on the ground).
Jim was the KK's original frycook before SpongeBob. He created the Jim Patty which proved to dominate the Krabby Patty. However he was not happy that Mr. Krabs was paying him too low, so he quit his job (which presumably cost Mr. Krabs a lot of money due to his invention of the Jim patty and how he wnt to work in other resturants). He became rich and visited the KK in "The Original Fry Cook" in which time seems to have made him forgive Mr. Krabs and his cheepness.
In "Truth or Square," Squidward had a flashback remembering his life before SpongeBob and Patrick moved in next door. He seemed to be very happy and to have a similar personality to SpongeBob. Not SpongeBob (as Squidward imagined his name) seemed to hate his job like the modern Squidward and was possibly annoyed by him like Squidward is with SpongeBob. He worked at the KK after Jim and before SpongeBob. He was presumably fired and replaced with SpongeBob after he moved in. It is unknown it that is his real name or if he was remembered that way by Squidward to show that he wasn't
Being cheap, Mr. Krabs consistently pays his employees extremely poorly, although the exact amount varies. In "Squeaky Boots," SpongeBob's paycheck consists of an envelope of money. In "Dying for Pie," Squidward mentions that he gets paid at minimum wage. In "Bossy Boots," when Krabs tries to get rid of all the stuff he bought for the Kuddly Krab, he sells them to SpongeBob for 1 years salary. This includes music, carpet, furniture, and stuffed animals. In "Skill Crane," Krabs gives SpongeBob and Squidward their paychecks, which consists of an envelope of money for SpongeBob and a huge bag of quarters for Squidward.
In "Bummer Vacation," Mr. Krabs holds up a dime and SpongeBob says that is more than what he makes in a year. In "Squid on Strike," Krabs deducts from SpongeBob and Squidward's salary for "goofing off". In "Big Pink Loser," SpongeBob claims that he actually pays Mr. Krabs rather than being paid himself. In "One Coarse Meal," it is revealed that Krabs pays SpongeBob with fake money called "Wacky Bucks".
According to the Krusty Krab Training Video, employees work under the unfortunately named philosophy of "POOP" which stands for People Order Our Patties. The video also explains how employees are required to maintain personal hygiene, keep their work station tidy and free of droppings, and keep supplies clean and organized. Employees must also be prepared for an emergency situation and watch out for Plankton.
Annual Employment Report Card
Report cards are kept to record the progress of employees on their tasks or job. The requirements include:
Keeps Work Area Clean
Arrives at Work on Time
Does a Laborious Task for Supervisor
Keeps up on Hygiene
There is also inspection for the employees (as seen in the episode "Missing Identity"). To pass the requirements, an employee must complete the following requirements.
Must have name tag on
Must be clean
The Krusty Krab is one of the most popular restaurants in Bikini Bottom. The place is usually full of customers except during episodes that involve trying to attract them. There is usually a significant line at Squidward's register and occasionally leads outside the doors into the distance with no one being discouraged from waiting in it to acquire food.
The food is so popular in fact that several times when customers are made to wait on food, rather than complain or simply leave they will riot, such as in "Whatever Happened To SpongeBob?" Attacking SpongeBob and Squidward and even damage the building despite attacking the Fry Cook and waiter being the opposite of helpful in that situation.
During the period where the Krusty Krab had a drive thru the town turned into a parking lot since everyone tried to use it, never occurring to anyone to just get out of their car and go inside like normal.
In several episodes, the Krusty Krab is temporarily changed or even converted into a different restaurant entirely.
In "Bossy Boots," Mr. Krabs hires Pearl to work at the Krusty Krab during her vacation. With the help of SpongeBob, she changed the Krusty Krab into the "Kuddly Krab", a girly teen hangout restaurant which served only tea, fries and salad. The restaurant featured a colorful design and featured stuffed animals and other novelty decorations. Despite its popularity among teens, the Kuddly Krab suffered an overall decline in profits and Pearl had to be fired. Pearl reveals that she was actually trying to be fired, as the job cut too much into her social life. The Krusty Krab returned to normal, and SpongeBob bought all the decorations for one year's salary.
In "Squilliam Returns," Krabs let Squidward temporarily transform the Krusty Krab into a fancy 5-Star restaurant so that Squidward could impress his highly successful unibrowed rival, Squilliam Fancyson. The plan worked, until SpongeBob went insane because Squilliam asked what's his name and destroyed the restaurant.
In "Le Big Switch," a French "exchange chef" from the Fancy! restaurant becomes the cook at the Krusty Krab, and the Krusty Krab is transformed into a five-star French bistro, where Krabs is ecstatic because he can sell minuscule portions for very expensive prices, including a putrid dish which can only lose its stench by shredding gold on top of it. The French chef does this, much to Krabs disapproval. Squidward is also very happy because SpongeBob became an exchange chef and went to the Fancy! restaurant where his Krabby Patties were a huge hit even though it was not the type of cuisine suited for the Fancy! restaurant. Eventually the Krusty Krab bistro goes out of business and SpongeBob brings back all the Fancy! customers, who were demanding Krabby Patties from the Krusty Krab, returning the business to normal.
In "Selling Out," Krabs sells the Krusty Krab to a corporate mogul named Howard Blandy and goes into retirement. The Krusty Krab is converted into the "Krabby O' Monday's," a family diner that had a pleasant atmosphere but in reality generated synthetic Krabby Patties made of sludge by machine. When Mr. Krabs took a job there as a result of boredom, he discovers this secret and goes on a rampage, revealing it to the customers and destroying the restaurant. He then buys the destroyed Krusty Krab back from Blandy for full price.
In "Krusty Towers," Krabs transforms the restaurant into the "Krusty Towers," a multistory hotel after staying at one and witnessing the outrageous prices that hotels can charge. The Hotel is destroyed when Patrick performs a cannonball into the swimming pool in his room, causing the tower to collapse, leaving only the original Krusty Krab.
In "Krabs a la Mode," the restaurant is converted into an indoor ice ring, and later a swimming pool, when Plankton's plot to turn down the thermostat and freeze the Krusty Krab backfires.
In "The Krusty Sponge," Krabs, after receiving a review praising SpongeBob, transforms the Krusty Krab into a SpongeBob-themed restaurant called the Krusty Sponge. However, the soiled yellow "Spongy Patties" made Krabs be arrested. Krabs bribes the judge to excuse him by having Squidward give him rides on the train which was built around the restaurant.
In "SB-129," the Krusty Krab is shown to in some form still be in service two-thousand years into the future. Like everything else in the future, the building is entirely plated in chrome.
In "Drive Thru," Mr. Krabs added a Drive Thru, but after this episode, the Drive Thru is never seen again. Also, the sides of the restaurant are wooden without the netting or glass as shown in every other episode.
Plankton attempted to walk right into the Krusty Krab and steal the formula. He tripped and made himself look helpless which made the public send Krabs to court. His new attempt was to sue Krabs for the formula. SpongeBob, impersonating as a lawyer, made sure that Plankton reveal his true intentions, resulting in another plan foiled. The public and jury turned against Plankton and labeled Krabs not guilty but cheap in the episode "Krabs vs. Plankton."
Krabs was arrested for selling poisoned food. The entire town of Bikini Bottom was against him. Luckily, the judge was a SpongeBob fan, so he reconsidered and did not send Krabs "down the river." Instead, he would return the restaurant to its normal ways, and the judge would get a ride on the Fun Train.
Krabs was arrested for avoiding to pay for a product by stealing. The judge, Horace A. Whopper, decided that he will give away free Krabby Patties all day afterwards. Krabby Patties sold by the dozens as Krabs screamed in horror while watching. This most likely ruined the profits as seen in the episode "Patty Caper".
It has also been shown that due to Mr. Krab's utter cheapness and greed that he is willing to violate many workers rights laws. This eventually got up to the point where it was almost as if it was slave labor at the KK. It has been shown numerous times such as in Fear of a Krabby Patty and Chum Caverns that he has kept employees and customers captive at the KK. It has also been shown that he pays them far below minimum wage (Squid on Strike and Bummer Vacation). He also has shown to physically abuse his workers (mainly Squidward) in episodes such as The Krusty Sponge where he has Squidward give a judge a ride on a train (that was pedal powered) while at the same time having Squidward wipped like cattle. Also in Chum Fricassee where he literally uses Squidward as a doormat to get revenge for helping plankton and nearly putting him out of business. Not to mention that in Le Big Switch he literally sells Squidward when he goes bankrupt despite the fact that he obviously did not own Squidward.
Despite his violation of Workers Rights the only time one of his employees questioned him about it was in Squidward in Clarinet Land where he did not provide Squidward with storage space for his clarinet.
Destruction and Abuse
The Krusty Krab has been destroyed in several episodes, but is always intact in its next appearance.
"Help Wanted" - Anchovies invade the restaurant and tear down the beams, as well as ripping down the Galley Grub sign and pulling the order up sign down.
"Employee of the Month" - SpongeBob and Squidward make so many Krabby Patties that the Krusty Krab becomes pressurized and explodes.
"Sleepy Time" - In Plankton's dream, he steps on the Krusty Krab causing some damage.
"Suds" - SpongeBob's massive sneeze destroys the Krusty Krab.
"Texas" - Sandy pulls SpongeBob causing the front of the restaurant to tear off.
"Your Shoe's Untied" - SpongeBob rips up the floor while hiding his untied shoes from Patrick.
"Squid on Strike" - SpongeBob "dismantles the establishment".
"Squilliam Returns" - SpongeBob ruins the 5-star setup of the Krusty Krab while suffering a mental breakdown.
"Just One Bite" - Squidward eats too many Krabby Patties, causing him to blow up in the Krusty Krab.
"Plankton's Army" - The robot destroyed the front door to get out.
"Skill Crane" - Squidward makes a crane spin out of control and it smashes the Krusty Krab.
"Krusty Towers" - After Patrick does a cannonball into the pool, the Krusty Towers collapses pancake-style, leaving only the original Krusty Krab standing.
"Spy Buddies" - Plankton's blimp is punctured, which flies into the Krusty Krab.
"The Krusty Plate" - SpongeBob resorts to a high-powered cleaning device which explodes with the force of an Atomic Bomb. Also, the Krusty Krab was shown on fire during a flashback, when Mr. Krabs said "Should have never left you alone with a lit blowtorch and me roller skates reveling that Eugene H. Krabs once left SpongeBob alone with a welding torch and a pair of roller skates.
"Pat No Pay" - Patrick throws a bag of money down the trash compactor, which jams and the Krusty Krab flies away.
"Slide Whistle Stooges" - Squidward drives a gasoline tanker truck through the Krusty Krab leaving the front and back of the Krusty Krab.
"Big Pink Loser"- A small part of the floor breaks when Patrick throws a jar down and it creates a hole.
"Dying for Pie" - Mr. Krabs throws a piece of the bomb pie at the milk which makes a huge explosion at the back of Mr. Krabs' office wall.
"Selling Out" - The Krusty Krab is demolished by a wave of Synthetic Patty Material.
"SpongeHenge" - The entire Krusty Krab except for the floorboards is blown away by the wind. Sometime later, SpongeBob finds the top and believes that he was gone for years, as it was almost completely buried.
"Summer Job" - Mrs. Puff accidentally destroys the door with a boat, so she had to work at the Krusty Krab.
"Buried in Time" - In Squidward's dream, The Krusty Krab sunk and was demolished and replaced with the Squidward Tentacles' museum
"Frozen Face Off" - The Krusty Krab was destroyed by Plankton, because he broke apart molecules from the safe and caused a nuclear explosion, which destroyed the Krusty Krab.
"The Battle of Bikini Bottom" - SpongeBob gets really angry when Patrick wears two Krabby Patties as socks. He swells, turns red, and explodes, blowing the front doors off, and sending Patrick flying into a dumpster.
"Sponge-Cano" - The Krusty Krab got set on fire by lava bombs when Mt. Bikini Bottom erupts.
"The Clash of Triton" - Triton drives through the Krusty Krab, smashing the door and some of the wood around it. Then he flies up, putting a hole in the ceiling.
"Drive Thru" - After Mr. Krabs hammers multiple holes into the wall the Krusty Krab becomes a pile of dirt.
"Drive Thru" - Mr. Krabs put in 3 drive thrus to speed up business and the Krusty Krab fell apart.
The location of the Krusty Krab relative to SpongeBob's house is not always the same. In the episodes "Help Wanted," "Plankton!," "Pickles," "Suds," "Hooky," and "Missing Identity," SpongeBob goes to the right of his house and passes Squidward's and Patrick's houses. In almost every other episode where the location of the Krusty Krab relative to SpongeBob's house, he goes to the left (the list of episodes would take such a long time to type, this editor would not bother). Mr. Krabs is too cheap to buy to pieces of property to place a Krusty Krab when it is destroyed.
The address of the Krusty Krab is possibly 831 Bottomfeeder Lane. In "Walking the Plankton," a letter is being delivered to the Krusty Krab in the beginning of the episode. If one pauses the episode at the right time, the address can be read.
Kuddly Krab (as seen in "Bossy Boots")
70's (as seen in "Truth or Square")
Space (as seen in "Truth or Square")
Old West (as seen in "Truth or Square")
Eleventy Seventh Anniversary (as seen in "Truth or Square")
5 Star Restaurant (as seen in "Squilliam Returns")
Krabby O' Monday's (as seen in "Selling Out")
Krusty Towers (as seen in "Krusty Towers")
The Krusty Sponge (as seen in "The Krusty Sponge")
Despite the apparent deliciousness of the Krabby Patty, the Krusty Krab is often seen without customers.
In the scene where SpongeBob washes his hands in the "Krusty Krab Training Video" (also seen in "Karate Choppers" and "Kenny the Cat"), there is a poster that says "Please wash your fins". Under those words there are words in Spanish that say "Wash the fins" (Lave las aletas).
At the end of "Krusty Krab Training Video," the Krabby Patty secret formula is almost revealed, but is cut off and the Krabby Patty formula was never revealed.
The Krusty Krab's doors have been shattered repeatedly throughout the episodes, but later in the episodes the doors are fixed.
In Nasty Patty, the sign is on the right side of the restaurant and has the name written in green neon lettering.
There are two stories on how the Krusty Krab was born, first was in "Krusty Krab Training Video" where it is shown that the Krusty Krab was once an old bankrupt retirement home named "Rusty Krab" which according to the narrator that it only took a few minor restorations (Mr. Krabs just added a 'K' to the Rusty Krab). Second was in Grandpappy the Pirate" where it is shown that the Krusty Krab was once a Pirate Ship. It's unknown which story is true.