The establishment seemed to express a "sincere" atmosphere to its customers but was revealed to be a very strict business. Employees would be forced to act friendly or else they would face Human Resources, which has a tough enforcer.
"Sincere Service with a Smile!"
Role in episode
When Mr. Krabs retires, Howard Blandy takes over the restaurant. After Mr. Krabs sees how much he had changed the restaurant, Squidward being forced to be friendly, Synthetic Krabby Patties being made by machines instead of by hand, and an automated cash register, he destroys the restaurant equipment in a fit of rage, and Carl calls Howard Blandy.
They make a truce and the customers get scared by the fact that the patties are made by a substance made out of gray sludge that was painted and shaped to look like Krabby Patties.