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The Sea Chicken Shack looks like an old building with the restaurant's name on a sign surrounded by flashing lights on top of it. Inside, it is pretty empty. There are metal tables and rotting wood platforms as chairs for diners.
At the order counter, it is simply a large barrier with a computer and cashier. A pull-down sign says the "No headbands" policy. SpongeBob criticized a bad safety rating and said it smelled like "a tuna bathed in algae after running a marathon." (Though the latter could be referring to Charlie, who had just run a marathon.)
Outside, there is a giant statue of Mr. Sea Chicken, which happens to be the main attraction, as it even attracts SpongeBob's attention while he is trying to see what attracts customers.
This gave Mr. Krabs the idea to let Squidward construct Krabs himself for the general public to use (especially the kids). After SpongeBob was crushed in the test run, Mr. Krabs ended the episode where he was painted gold and used as the statue children played on.
Role in episode
SpongeBob was sent onto a spy mission to gather intel on this restaurant. When he stood in line, SpongeBob was thrown out of the restaurant since the policy states no headbands. After being evicted from the restaurant, SpongeBob was forced to climb the "Sea Chicken" statue which was made for children to climb.