As Squidward and SpongeBob are about to leave work at closing time, a bunch of fish want to get inside the Krusty Krab to order food. Squidward refuses to stay away from home any longer, but Mr. Krabs overhears. He announces that the Krusty Krab will now be open 24/7, in an attempt to get more money through late-night eaters.
SpongeBob and Squidward get busy with customers, but soon enough, Squidward gets bored and decides to tell SpongeBob a little story in to have some fun.
Squidward tells SpongeBob the story of the Hash-Slinging Slasher, that used to work at the Krusty Krab. The Hash-Slinging Slasher used to be a fry cook, just like SpongeBob, but clumsier. One night, the Slasher cut off his hand by mistake while cutting the Krabby Patties. He replaced his hand with a rusty spatula, and soon after gets hit by a bus. As a funeral, he was fired. Every Tuesday night the Hash-Slinging Slasher's ghost returns to the Krusty Krab for vengeance. Squidward then explains the three signs that signal the Slasher is approaching. First, the lights flicker on and off. Second, the phone rings and no one is there. Finally, the Slasher exits the bus that ran him over and walks into the Krusty Krab and
SpongeBob takes it a little too seriously, and Squidward is soon telling SpongeBob he lied about everything just to shut SpongeBob up.
Eventually, all of the customers clear out, and SpongeBob and Squidward are alone at 3:00 am. The signs of the Slasher suddenly begin with the flickering lights and the ghost phone caller. When Squidward and SpongeBob realize that neither of the others are doing this, they get frightened. Soon, the bus appears outside the Krusty Krab. A shadowy figure gets off the bus, and approaches the Krusty Krab.
Squidward and SpongeBob fear for their lives, but it turns out that the "Slasher" was just a fish who wanted a job at the Krusty Krab. This fish was on the bus, and hung up the phone because he was nervous. The flickering lights turned out to be a well known painting flicking the lights on and off in the painting.
SpongeBob, Squidward and Mr. Krabs are working at the Krusty Krab as the episode commences. Mr. Krabs notices Mrs. Puff, SpongeBob's driving teacher, and falls deeply in love with her. Against the wishes of Mr. Krabs, SpongeBob introduces him to Mrs. Puff. Mr. Krabs is at a loss for words when he talks to Mrs Puff, so SpongeBob translates Mr. Krabs's gibberish. Mrs. Puff ends up agreeing to go on a date, and Mr. Krabs states that "he still has it."
Mr. Krabs and Mrs. Puff eat at a fancy restaurant and they have a great time, though Mr. Krabs spends $100,000 on that one dinner. When he and SpongeBob get back to Mr. Krabs's house, Mr. Krabs wants SpongeBob to keep track of his money on his next date.
SpongeBob tries not to let Mr. Krabs spend any money when he meets Mrs. Puff the next day, but Mr. Krabs continues to get SpongeBob to buy things for Mrs. Puff. When SpongeBob returns with the item Mr. Krabs wanted, he gets angry at SpongeBob for being "loose with other people's money." This goes on for a while, and soon SpongeBob gets angry with Mr. Krabs and walks off the screen in a huff.
Mr. Krabs is shocked, but Mrs. Puff tells Mr. Krabs that he is very sweet, and they agree to go dutch. Mrs. Puff then gives Mrs. Krabs a kiss, and Mr. Krabs is happy.