At 8:00 PM, the Krusty Krab is closing, and Squidward is now excited to leave. As he gets ready to quit for the day, Tom comes to the door and makes an order. Squidward tells him that they are closed, and the customer says ”Well, fine! If you don’t want my money!” Upon hearing this, Mr. Krabs jumps to the door (landing on Squidward) and proclaims that the Krusty Krab is now open 24 hours a day. SpongeBob is excited at this, while Squidward is furious. SpongeBob had to go and take out the trash. This gave Squidward an idea.
At 12:15 AM, the Krusty Krab still has customers. Squidward decides to scare SpongeBob with the tale of the ”Hash-Slinging Slasher.” SpongeBob mistakes his name with different arrangements (such as ”Cash-Ringing”), which annoys Squidward. Squidward then goes on to telling him that the ”Hash-Slinging Slasher” worked at the Krusty Krab years ago as a fry cook, just like SpongeBob, only clumsier. One night, when he was cutting the patties, he cut off his own hand and replaced the hand with a spatula. Then, SpongeBob says ”you mean like this?” and pulls off his arm repetitively with it growing back until Squidward says to SpongeBob that he was not a sponge and therefore it could not grow back. He was later hit by a bus and killed, and fired at his funeral. Every Tuesday (Squidward asked what day it was to come up with this) night, his ghost comes to the Krusty Krab to ”wreak his horrible vengeance.”
There are three signs of his arrival, which are:
The lights will flicker on and off.
The phone will ring, and there will be nobody there.
The ”Hash-Slinging Slasher” will arrive in the ghost of the bus which ran him over, slowly approaching the counter, and ”gets” you. SpongeBob is terrified by this, and begins screaming repeatedly while Squidward laughs. When SpongeBob does not stop screaming, the annoyed Squidward tells him that he was joking and that the story is not true. SpongeBob then starts laughing continuously in the same manner as his screaming.
Later that night, at 3:00 AM, every customer is long gone. Squidward begins hearing strange noises and starts becoming afraid. He quickly tells himself that there is no ”Hash-Slinging Slasher,” but soon the lights start flickering and the phone rings with no answer. Soon, SpongeBob and Squidward see a bus appear outside. SpongeBob says he never knew the buses ran this late, and Squidward replies that they do not. When the bus drives away, a dark figure with a spatula whom they believe is the ”Hash-Slinging Slasher” appears from the bus and starts walking toward them. They begin panicking, believing that they will die, until the ”Hash-Slinging Slasher” reaches them, and is revealed to be a normal person who wants a job application, and hung up on the phone because he was nervous (his nose actually represented the eyes in the dark, and the fish’s sleeve dropped down to show that he was holding his spatula the whole time.)
However, this still does not explain the lights flickering. Suddenly, they begin flickering again, and everybody looks around and sees Nosferatu (in a doctored image) rapidly flipping the light switch. They tease him by saying his name, after which Nosferatu (in another doctored image) smiles at them mischievously, then he blacks out of the screen by turning off the lights as the episode ends.