The Kuddly Krab was an establishment opened up by Pearl in "Bossy Boots". She was trying to start a business like her dad, but it had ended up as a failure.
History
While deciding on how to re-establish the Krusty Krab and the Kuddly Krab, Pearl and SpongeBob thought of renaming the place. They thought of names like The Kutie Krab, The Kooky Krab, The Khaotic Krab, The Kissy Krab, The King Krab, The Kandy Krab, The Kool Krab, The Kowboy Krab, The Kurly Krab, The Kreepy Krab, and The Killer Krab. Then, they thought of the Kuddly Krab and selected that name.
Outside the Kuddly Krab, the clam shell sign of the Krusty Krab was replaced with a heart and a crab waving. The restaurant's outside was painted pink, also. The inside had many stuffed animals. The menu consisted only of salads and tea, which SpongeBob did not know how to make. The uniforms were also changed. Employee and manager uniforms now consisted of a pink outfit with purple flowers and two K's attached to springs on the head. Also, Pearl made SpongeBob stand outside the Kuddly Krab in a crab costume to advertise it, a job that humiliated him.
The restaurant was reverted back to the Krusty Krab after Pearl left. All the things that were used inside the restaurant were sold to SpongeBob at the end. The Kuddly Krab also was for teenage girls, because however Pearl was a teenager, so she made it teenager-like. Soon though, Pearl told SpongeBob that she was only trying to impress her dad. She closed the Kuddly Krab, and the Krusty Krab was reinstated. All the materials of the Kuddly Krab were then brought into SpongeBob's house, costing him a one-year's salary.