It is located on a mountain roughly outside of Bikini Bottom. The restaurant is made of wood and is covered in some snow. The top part has a sign with the words "Taco Haüs" written on a giant taco with a bratwurst sausage.
The inside of the restaurant has a photo booth, a cuckoo clock, and some stale chips, which are the items used to build the time machine.
It is said to be an abandoned Mexican-German restaurant despite lights inside still being left on. The founder and employment there is so far unknown. SpongeBob, Plankton, and Karen once went into this abandoned restaurant to build a time machine and retrieve the secret formula.
Creation and Developement
The resturant was used for two different things before its final role in the movie.
At one point, after SpongeBob and Plankton have teamed up, Plankton believes the SpongeBob's muscle remember how to make a Krabby Patty, so they go to the resturaunt to have SpongeBob recreate the Patty. However, instead of making the Krabby Patty, the SpongeBob makes the New Recipe Krabby Patty. It is revealed to be living and it slinks away. SpongeBob believes that he is not worthy of being in a resturant, so he runs away. Plankton asks where he is and the New Recipe Krabby Patty says that SpongeBob is down the mountain. Plankton thanks the New Recipe Krabby Patty and runs ater SpongeBob. The New Recipe Krabby Patty says, "No problem, dude."
At another point, it was the location where most of the song, Teamwork took place. one version of the song, featured them discovering the pieces of the Time Machine and then building it. Another version, saw them building the time machine and then going into the song.
Sausage (presumably a German bratwurst)
The word "haüs" means "house" in the German language. The full translation of the word is "Taco House."