The S.S. Diarrhea is only mentioned by Mr. Krabs in the episode "Squilliam Returns". It is a boat where Mr. Krabs was the head chef. Little is known about it other than that Mr. Krabs worked there and that it presumably sells horrible food.
Mr. Krabs was asked by Squidward if he served on a resturant called the S.S. Gourmet which he said he did. He later reveals that he mistook Squidward for saying S.S. Diarrhea and that he cleaned the bathrooms of the S.S. Gourmet.
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