After yet another attack on the Krusty Krab by Plankton, SpongeBob asks Mr. Krabs why they hate each other so much. Mr. Krabs tells his side of the story, in a series of flashbacks
Mr. Krabs enlists SpongeBob and Patrick to spy on Plankton. The pair visit Sandy for advice, who gives them a pair of laser pants. They start following Plankton and end up at the Chum Bucket, with Plankton thinking that they came to eat. While waiting for Plankton, Patrick tells SpongeBob that his laser pants are malfunctioning. As he continues trying to control them, the laser shoots out and destroys the Chum Bucket. Plankton becomes angry and attempts to destroy the Krusty Krab for revenge. However, Plankton is revealed to be Mr. Krabs, who entered into a bet with the real Plankton (who created a robot Mr. Krabs to replace the real him) to prove that if he were Plankton, he could finally steal the Krabby Patty formula.
Mrs. Puff presents a film on good and bad boat drivers.
Mr. Krabs organizes a work contest for SpongeBob and Squidward that involves naming all the customers at the Krusty Krab. He shows them a brochure for a cruise vacation as a prize. After efforts from his two employees, Mr. Krabs did not tally the scores, but tells them that to know the last customer's name will decide who will win. Squidward then asks the fish his name but the fish has a name that sounds alike to "What's it to ya?" So Squidward steals the customer's wallet to look at the driver's license. Squidward gets arrested. In jail, he gets the prize from Mr. Krabs only to find that the cruise that the brochure offers has long been expired and that the prize is just the brochure.
After a food critic raves about SpongeBob's cooking, Mr. Krabs makes him the focal point of the Krusty Krab restaurant. The next day, Mr. Krabs begins selling yellow patties (tainted meat), replacing the Krabby Patty sandwiches. The new brand makes the customers sick, and Mr. Krabs is ordered to the court. The Krusty Krab changes back to normal after Mr. Krabs takes the judge, who is a huge fan of SpongeBob, to his restaurant.
Rejected yet again by Squidward, SpongeBob decides that if he can't hang with the real Squidward, he'll make his own. So SpongeBob builds a ventriloquist dummy modeled after his favorite neighbor. At first Squidward is pleased that SpongeBob is distracted by this mini Squidward.
After being late to work, SpongeBob decides to move into the Krusty Krab.
Plankton alters the Krusty Krab's thermostat as part of another Krabby Patty stealing scheme. It backfires on him when Mr. Krabs turns the Krusty Krab into a skating rink. Plankton goes in and attempts to steal a patty himself but gets pummeled. He freezes the customers, but Mr. Krabs stops him and sets the thermostat. The Krusty Krab is turned into a popular public pool the following summer.
SpongeBob falls in love with a patty. After some time, the patty has spoiled. Oblivious to this, SpongeBob decides to take it on a date. When at the Krusty Krab, SpongeBob still thinks the sandwich is beautiful until he smells it, then sees the hideous appearance of the expired patty. Mr. Krabs tells SpongeBob that Krabby Patties are meant to be loved and eaten. SpongeBob then eats the spoiled Krabby Patty, feeling nauseous afterward.
Squidward gets accidentally electrocuted by his own electric fence, causing a complete change in his personality. He becomes cheerful and friendly to everyone in town and SpongeBob thinks that he is replaced as fry cook. SpongeBob's behavior towards Squidward changes over jealousy, making Squidward feel saddened. SpongeBob goes to his house to apologize, but becomes ill-tempered after slapping Squidward, who is suffering again from electrocution upon entering his house.
SpongeBob and Patrick are determined to ride a new roller coaster at Glove World, called, "The Fiery Fist o' Pain". However, the more they think about the extreme coaster, the more they get scared, so both of them find ways to stall themselves from riding it. After learning that Glove World will close in five minutes, they decide to ride the roller coaster and become strong to face their fears.
Plankton tricks SpongeBob, Patrick, and Squidward to help him redecorate the Chum Bucket. Plankton sees this as an opportunity to purloin the Krabby Patty formula, as Mr. Krabs is on vacation. The two remodel the Chum Bucket by dismantling the Krusty Krab, while Plankton fails to retrieve the formula in the process. Mr. Krabs arrives and moves the now Krusty Krab-like Chum Bucket to his place, deserting Plankton.
It is a normal day at the Krusty Krab where Old Man Jenkins is making an order until Jim, the Original Krusty Krab Fry Cook, arrives in his golden limousine. Old Man Jenkins, Mr. Krabs, and Squidward remember back when the Krusty Krab had "class." Squidward had long hair and Jim was the fry cook. Jim makes a Krabby Patty and SpongeBob eats it and loves it. He wants to cook like Jim, and Jim says not to step on the patty, since the customers run over a Krabby Patty made by SpongeBob when headed to greet Jim.
SpongeBob reads a scary book before bedtime. Because of this, he sees scary creatures when he turns off the light, such as the chair being a monstrous brain beast and a coral branch tapping the window as a monster's hand.
Mr. Krabs makes a wish that he could talk to money. When his wish is magically granted by the Flying Dutchman in exchange for his soul, Mr. Krabs becomes restless after learning that they want to be spent. Mr. Krabs starts to regret his deal, and asks the Flying Dutchman for a refund, who refuses.
Squidward invents a Krabby Patty-making machine to try to make SpongeBob lose his job. SpongeBob will not go down without a fight, so he competes against it.
SpongeBob, Patrick, and Squidward enter a dance contest, but Squidward fails to proceed to the finals, so he decides to coach for SpongeBob to win the trophy. At the night of the competition, they win the contest. However, they get disqualified when SpongeBob reveals that he has a partner, which is Squidward. The trophy is confiscated, and it turns out that all the contestants are partnered. The only individual dancer in the contest is Patrick, making him win the trophy.
SpongeBob and Patrick organize a party in the Treedome to welcome Sandy, who is returning from Texas. However, unknown to her, Sandy has carried fleas. The fleas take over the Treedome, until Sandy get an idea that would rid the fleas. She opens the door, letting saltwater get inside.
After waking up with a hangover from a party last night, Patrick accidentally takes SpongeBob's donut. He is wracked with guilt over his action. SpongeBob arrives to watch a videotape of the party and it is revealed that the donut is a birthday present for Patrick. Patrick shares his donut to SpongeBob.
During an evening of washing dishes at the Krusty Krab, SpongeBob cannot remove a spot from a dinner plate. He attempts to use various methods, to the point of destroying the restaurant. In the end, SpongeBob succeeds to clean the plate, but destroys the Krusty Krab in the process from a nuclear explosion.
It is picture day for Mrs. Puff Boating School Year Book, and SpongeBob has spent all morning getting ready for it. He has to make it to Boating School without getting dirty, but this proves to be more difficult than he imagined. After several attempts, he has finally taken the picture. The episode ends with SpongeBob looking at the yearbook.
When Patrick eats Krabby Patties without paying, Mr. Krabs puts him to work in the restaurant to pay it back. However, he only causes wreak havoc up the restaurant and makes it explode.
SpongeBob's parents go missing and he suspects that his cousin BlackJack, the family bully who used to torment SpongeBob when they were little, has kidnapped them. SpongeBob goes to BlackJack's house and sees his parents. They explain to SpongeBob that they are throwing a party for BlackJack's return from prison. His cousin arrives and all of them enjoys the party.
While brushing his teeth, SpongeBob accidentally gets a black eye. Too embarrassed to tell anyone the truth behind his injury, SpongeBob makes up a tale about a fight with a thug. When at the Krusty Krab, SpongeBob learns the bully in his story really exists after it arrives, which makes SpongeBob tell the truth.
Plankton turns Mermaid Man and Barnacle Boy into his minions with his mind controlling device. Plankton controls the heroes and orders them to encourage the customers of the Krusty Krab to eat at the Chum Bucket. By feeding them Krabby Patties, SpongeBob turns Mermaid Man and Barnacle Boy to normal and they all go to the Krusty Krab, leaving the Chum Bucket empty.
SpongeBob and an executive chef trade jobs in a cultural exchange program. SpongeBob does not start out well at the new restaurant as the owner demands him to cook other than Krabby Patties. The owner continues to yell at him until he tastes a patty, realizing how good it tastes. The owner begins to sell Krabby Patties, which all the rich clientele enjoy. The exchange program ends and SpongeBob is eager to return to the Krusty Krab. SpongeBob takes the Krabby Patties back and all the customers follow him.
SpongeBob becomes infected by an itch-causing fungus. When at the Krusty Krab, his disease gets on the Krabby Patties and fries, all of the customers at the restaurant get infected. Eventually, Gary arrives and saves everyone by licking the contagious fungi off.
SpongeBob and his friends visit Atlantis. Several attractions at Atlantis have charms to each of the group, including Sandy, Mr. Krabs, and Squidward. However, after popping the Oldest Bubble, they are chased by the guards. Plankton appears and is adored by the king, who makes Plankton as the replacement attraction of the bubble. SpongeBob and the gang return to Bikini Bottom.
Instead of getting on a ship headed for summer camp, SpongeBob and Patrick accidentally board a ship full of prisoners on their way to jail on Inferno Island. At the prison, the warden gets annoyed by the two. Out of boredom, SpongeBob conceives to make a play. The play is shown and the warden likes it, until the prisoners use the boat prop to escape.
SpongeBob and Patrick are scared of a cricket and after sneaking into Sandy's camping trip SpongeBob and Patrick are stranded in a cave. SpongeBob and Patrick meet an old man, who convinces each of them to eat his friend. SpongeBob and Patrick then make attempts to eat each other. The old man is impressed, and he then reveals that he is really Sandy. Sandy gives SpongeBob and Patrick survivor badges.
Mr. Krabs opens a mobile underwater restaurant to compete with Plankton. SpongeBob and Patrick are tasked for the job and are unsuccessful with their first customers. They fall into an abyss and wake a sea monster up. The monster purchases Krabby Patties and Plankton comes along. Plankton is mistaken by the monster for a dessert (a chocolate éclair) and the monster chases him away.
When Patrick and SpongeBob discover they have conflicting views on cleanliness, their disagreement blows up into an epic battle. After several attacks to each other, SpongeBob gets dirty, while Patrick ends up clean.
SpongeBob breaks Squidward's face by slamming a door into it, and the resulting plastic surgery repair makes Squidward look handsome. His new-found beauty is making everyone in Bikini Bottom become in love with Squidward.
SpongeBob's holes create a jellyfish-enticing sound when wind blows through them. SpongeBob cannot stand the jellyfish anymore, so he hides in a cave for a long period of time. After a while, SpongeBob makes several stone replicas, which produce better and louder music, to make sure that the jellyfish will leave him alone. He succeeds, so he runs to the Krusty Krab, only to discover that it is already abandoned.
SpongeBob loves Krabby Patties so much, he cannot help singing and dancing when he is around the delicious sandwiches. A community headed by Miss Gristlepuss, who is against all things fun and delicious, bans Krabby Patties. Mr. Krabs decides to open the Krusty Krab at SpongeBob's pineapple house. Miss Gristlepuss arrives only to close the restaurant, but she trips and a Krabby Patty is dropped into her mouth. It makes her love the sandwich and the restaurant re-opens.
SpongeBob's cousin Stanley comes to visit. Stanley attempts to get a job at the Krusty Krab, with a help from SpongeBob. After several troubles by Stanley, Mr. Krabs tells him to get a job at the Chum Bucket, with the purpose of destroying it. Plankton hires Stanley and he accidentally destroys the Chum Bucket, much to Mr. Krabs' delight.
SpongeBob and Mr. Krabs turn an old submarine into a mobile Krusty Krab.
When Stanley, SpongeBob's klutzy cousin, comes to visit Bikini Bottom, he quickly turns SpongeBob's life upside down.