The Reef Cinema is a small theater, located down the street from Wigs & Hairpieces. Tickets are purchased at an outside window after waiting in line.
The exterior of the building has sort of a triangular shape with moss on the top of the building. There is a huge sign saying Reef Cinema and underneath the Reef Cinema sign is a sign that says the title of the movie that's now showing. On the corners of the cinemas, tikis can be seen.
The lobby includes a snack bar, restrooms, and walls decorated with movie posters. The snack bar sells Pop Kelp, three kinds of candy, and soft drinks. Flanking the snack bar are the doors that lead to the theater which are shaped like tiki heads. The 62-seat theater is tiki-themed to match the exterior and lobby.
SpongeBob and Plankton go to Reef Cinema to watch a sequel film. Bubble Bass then sits on Plankton, unaware of his small size, and squishes him with his butt cheeks even after SpongeBob protests. To get him off, SpongeBob throws a piece of popcorn in Bubble Bass' direction to lure him. Just then, Mr. Krabs interrupts the movie and tells all the attendants to reach into their partner's pants to see what they have got. When SpongeBob does so to Plankton, he find a Krabby Patty and thus breaks down into tears, realizing that Plankton was using SpongeBob to get the formula the whole time, not because he was interested in a genuine friendship.
As Plankton heads off with the Krabby Patty, he crashes into the solid concrete of the movie screen. Mr. Krabs then flings him and he lands on Bubble Bass' hand full of jelly beans. Bubble Bass mistakes Plankton for one and goes after him as the episode ends.
SpongeBob and Patrick go here to watch a movie to get the former's mind off his lack of confidence. His bad breath disgusts many moviegoers and kills one of them. Patrick, fed up with people's attitude, brings SpongeBob up into the spotlight and forces the moviegoers to look at him as his bad breath is prominent. This drives all of the people away. Meanwhile, Patrick gets hungry and eats an offer of SpongeBob's peanut onion ketchup sundae.
Patrick then cries in the bathroom stall as he gets the impression that he too is ugly after one of the patrons calls him out on his bad breath. When SpongeBob goes to confront him, he remarks that Patrick caught the ugly. During the rundown of Patrick's food intake, SpongeBob realizes that the sundae is what gave both of them the "ugly" and that they are not really unattractive after all; the citizens are just turned off by their bad breath. SpongeBob and Patrick then celebrate in pride as their bad breath eventually burns down the theater.