Mr. Krabs builds it directly to the right of the original restaurant to make more money. It opens on March 7. When Perch Perkins asks what inspired him to build the Krusty Krab 2, Mr. Krabs simply answers money.
When Mr. Krabs first opens the Krusty Krab 2, he appoints Squidward as the manager. Squidward assumes the duty and wears a "manager" pin on his shirt. When SpongeBob returns from Shell City and saves Mr. Krabs, the job is given to him.
In the episode "As Seen on TV," Squidward constructs a second Krusty Krab for a commercial, as an understudy for the first.