During a radio broadcast from Gil Chesterton, Frasier finds out that one of his favorite restaurants from his childhood, Orsini's, is closing. They decide to go their for a final dinner, and, despite warnings from their father, decide to buy it out and run it themselves.
Renamed "Les Frères Heureux"- or, "The Happy Brothers", if preferred, the Crane brothers attempt to manage a super-exclusive restaurant, which attracts a full house on the first night!
However, things quickly start to go downhill for the Crane brothers. First, Bulldog and his girlfriend show up to claim the last empty seat ("The Enchanted Grotto") by the restroom. Then, Niles knocks out the restaurant's bartender by going through the wrong kitchen door. Frasier repeats the task with the waiter when trying to carry the bartender into the kitchen. The head chef walks out on them over a disagreement between Frasier and Niles on souffle, and the rest of the staff leaves after Niles says that they'll be serving two state senators and the head of the immigration bureau.
Niles is forced to become the new head chef, Martin the bartender, and Daphne another chef. While they almost were forced to go without a waiter, Rox manages to walk in at just the right (or possible wrong) time and is blackmailed into leaving her date and becoming the waiter for the night.
He is just about to announce the crisis to the diners when Gil decides to pay a surprise visit- and brings an entire platoon of restaurant critics along with him. They all order eels- one dish Niles certainly can't cook. Roz is no better- thanks to her, the Cherries Jubilee planned for dessert ends up exploding- setting off the sprinkler system, and ruining any meals left in the building as well as scaring off all of the customers sans Bulldog (who enjoyed the sprinkler's affect on her date's dress.) As a final blow to the restaurant, waiter-turned-valet driver Otto drives a car through the wall of the building.
The episode ends with Frasier and Niles discussing how much they regretted doing this, along with Bulldog walking out of the "Enchanted Grotto" and wondering what happened to the building.