On his lunch break, Squidward encounters Squilliam Fancyson with a group of his fans. Squilliam asks Squidward what he has "accomplished" since high school, Squidward, panicking, tells him that he owns a five-star restaurant. Squilliam tells Squidward that he and his friends will come to his restaurant that night, and Squidward is very shocked. He begs Mr. Krabs to let him have control of the Krusty Krab for the day, and when he explains that Squilliam's coming, Mr. Krabs accepts because he knows that Squilliam has money (though this is only faintly implied).
Squidward attempts to train his employees to turn the Krusty Krab into a fancy restaurant, including Patrick, who thought that he was joining the corps and is given the job of collecting the hats. SpongeBob, who doesn't yet know how a waiter workers, is the waiter, and Mr. Krabs, who says he once served on the S.S. Gourmet, is the chef. However, things do not go well; Patrick is beating up the hat rack because it won't "give" him its hat, Mr. Krabs makes terrible food and says that he worked as a janitor on the Gourmet and was the head chef on the S.S. Diarrhea, and SpongeBob can't handle the copy of How To Become A Fancy Waiter in Less Than 20 Minutes that Squidward gave him. Squidward tells SpongeBob to clear his mind of "everything that doesn't have to do with fine dining and breathing". SpongeBob's mind, which is metaphorically portrayed as an office, is operated by smaller SpongeBobs. Their boss's assistant tells them that he's just got an order: Dump everything that isn't about fine dining. They begin to get rid of (most of) all documents, which represent SpongeBob's knowledge, until SpongeBob just stares into empty space and doesn't respond to anything.
Squidward runs outside and bumps into Squilliam, who is just about to enter. They both go inside, and see that the Krusty Krab has been transformed into a very fancy five-star restaurant. After sending all the customers to their tables, SpongeBob tells Squidward that he did all of this, and that he has tied up Patrick and Mr. Krabs in the kitchen. After his meal, Squilliam admits that he is impressed and asks SpongeBob what his name is. However, SpongeBob cannot remember his name, having discarded it along with everything else, and inside his mind, all of the little SpongeBobs are trying to find his name, which ultimately results in his brain snapping in half. SpongeBob goes insane, destroying the fancy restaurant environment and revealing the Krusty Krab for what it really is. Squilliam finds out that Squidward actually is a cashier, humiliating him. However, Squilliam then "admits" that he's also a cashier too before revealing that he was just kidding and that he is "filthy, stinkin' rich!" He and his crowd leave the restaurant to ride in his "balloon casino", leaving Squidward dejected and defeated once again, but not before Mr. Krabs plays him a sad song in the World's Smallest Violin, which annoys him.
There is a deleted scene with Squidward being one-upped by Squilliam at everything in life. This was cut in later airings for unknown reasons.
In the original airing Squidward had said "Lie, Squidward, lying always makes it better" (to himself). It was later changed to "Don’t lie. Lying always makes it worse". This was to make sure kids watching the episode, would be less tempted to lie.
When Squilliam says that he wants to come to the restaurant that night, Squidward (who had already said that it was a 5-Star Restaurant) could have said that they were booked up, as most 5-star restaurants call for reservations. However, Squillium could have been suspicious by this.
There is some controversy among homophobics where Squidward imagined Squilliam in his underwear and he thought: "Oh no! He's hot!", meaning that Squidward might have some slight homosexual characteristics.
In the Bahasa Malaysia version of this episode, when SpongeBob grates the customer, he says "Your butt want to eat rice?.
This is the first time Fred wears the same clothes as SpongeBob (brown trousers, black belt and a white shirt). Fred would again wear the same clothes as SpongeBob in "The Sponge Who Could Fly," however for some reason, he's purple.
While SpongeBob's mind is being cleared, one of the sheets being shredded was titled, "Spice Garden Tips." Interestingly, SpongeBob's spice garden was mentioned in the partner episode, "No Weenies Allowed."
Two parts of this episode have become popular on YouTube: the first being Patrick saying "may I take your hat sir?" and "hommina".
The scene when Squidward tells SpongeBob to clear his mind might be a parody to the Total Recall scene.
Running Gag:Mr. Krabs playing "the world's smallest violin."
This has also became an internet meme.
When Mr. Krabs messes up the peas and the appetizer, Squidward interrogates him, and the two speak as though Mr. Krabs had told Squidward that he was the 'Head Chef' on the S.S. Gourmet, This is not true as their first conversation regarding the S.S. Gourmet was Squidward merely asking Mr. Krabs if he was the 'Head Chef' on the S.S. Gourmet, Mr. Krabs replied that he cleaned the bathrooms on the S.S. Gourmet and also the 'Head Chef' on the S.S. Diaherrea
When Squidward asks SpongeBob how he transformed the Krusty Krab, Squidward addresses SpongeBob by name. SpongeBob replies, as if he already knows his name. However, toward the end of the episode, when Squilliam asks him his name, SpongeBob's name is "thrown out" of his mind. This conundrum would put a major loophole in the entire storyline.
When Squilliam "admits" he's a cashier, Mr. Krabs is wearing a tuxedo rather than the outfit he was wearing throughout the episode. This also happens at the very end. There is a possibility that SpongeBob dressed him up.
The episode claims that the "workers" in SpongeBob's brain threw out his name when disposing of everything except fine dining and breathing, but when Squidward speaks SpongeBob's name after being pinched by him, SpongeBob acts as if he knows his own name.
The face Squidward makes when Squilliam says he wants to the Krusty Krab tonight has become an internet meme.
When Squilliam asks SpongeBob for his name, Squidward could have simply said to Squilliam "His name is SpongeBob SquarePants" or just told SpongeBob what his name is, that way SpongeBob would not have destroyed the place. However, Squidward did not know that this would happen, so there is no way he could have prevented it.
"Hommina hommina hommina" is Ralph Kramden's catch phrase in the TV show The Honeymooners.