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It looks like a giant ship-in-a-bottle. There is a yellow ramp, most likely meant for handicapped individuals. It also has a giant sign at the top that says "Fancy!" in red on it. The restaurant is presumably on the opposite end of town from the Krusty Krab, seeing as Mr. Krabs mentions it being "some place far away."
There are cushioned seats alongside tables and a reception area, as well as a long kitchen which can withstand many chefs. There is also a stage in which an imported pianist plays live-action music on the piano.
Role in series
Mr. Krabs and Mrs. Puff go on a date at this restaurant. When the $100 bill comes, Mr. Krabs nearly has a heart attack. When the bill turns out to be someone else's (his bill was actually $100,000), Krabs screams at the top of his lungs, destroying the glass bottle part of the restaurant.
SpongeBob works here as an exchange chef. Since SpongeBob has a passion for making Krabby Patties, they are the only thing he is able to cook, but the upper-class diners at Fancy! love them.
By the time the chef exchange program is over, the Krusty Krab had gone bankrupt, but SpongeBob arrives back just in time, bringing back the Krusty Krab's customers and the diners at Fancy!. It is revealed that the main chef of Fancy! is Le Schnook. This is the only episode where the Fancy! restaurant is seen during the daytime.