When Latka's grandmother dies, he is pleased that she has left him her famous cookie recipe, complete with a supply of the secret ingredients. He bakes up some for the cabbies to enjoy, but the cabbies don't enjoy them.
Nonetheless, Latka begins his own cookie business. In the days to come, the cabbies find that they are indeed starting to inexplicably like the cookies, and are also unusually happy and energetic. When Jim samples one, he determines that the secret ingredient is cocaine, which accounts for why everyone's behavior.
Upon learning this, Alex visits Latka, busy baking cookies to fill supermarket orders, to tell him the bad news. Latka is noticeably high from the cookies, and hallucinates that Famous Amos tells him to do whatever it takes to be successful.
Although Latka can no longer sell the drugged cookies, he is excited at the taste of capitalism because it means he's now a true American.