Homer goes to Krusty Burger for a new menu item, but the coupon for it is expired when he gets there. He then buys a Krusty Burger franchise and opens a Krusty Burger restaurant, but is surrounded by other Krusty Burgers. To bring down the whole chain, Homer begins cutting corners and intentionally failing.
Krusty Burger rolls out a new breakfast item, the Waffle-apogus. After Bart points out that there is a buy-one-get-one-free coupon in the paper, Homer takes off for work and picks up Lenny and Carl, stopping by Krusty Burger before going to work. But Homer begins destroying the Krusty-shaped speaker box in the drive-thru line when he is told that the coupon was only good until 9 AM. The police are called, but Chief Wiggum and Lou make no arrests. Homer vows for revenge against Krusty Burger, and goes to Krustyco International to buy a Krusty Burger franchise.
At Springfield Elementary, Lisa sees that everyone is eating Krusty Burger food, and realizes the school's cafeteria is replaced with a Krusty Burger. Lisa is the only student who is not thrilled that Krusty Burger is at the school, and is further dismayed when she comes home to see Homer driving a Krusty Burger-themed car. Homer tells Bart and Lisa that he is now the owner of Springfield's newest Krusty Burger. The next day, Homer goes to the Krusty Kulinary Institute and learns how to run a franchise. He passes the test with a perfect score, and Homer's Krusty Burger opens up a month later. Homer celebrated, but Lisa shows Homer that there are Krusty Burgers on the other three corners of the intersection. Homer then confronts Krusty, saying that he was promised the only Krusty Burger location for 1.3 miles. Krusty claims that those Krusty Burgers are related businesses - a Krusty Burger Express, a Krustaco Hut and a P.J. Mackrustydoodles, but Homer insists and threatens him. Drederick Tatum steps in to prevent Homer attacking Krusty, and Krusty takes off in his limo. Homer realizes he can't make his Krusty Burger better than everyone else's, so Bart insists that Homer make his Krusty Burger worse.
Meanwhile, Lisa is still bummed out due to the recent events, and even Itchy & Scratchy cartoons don't cheer her up. Lunchlady Doris shows up at the Simpsons' door, now selling Katie Kate Kosmetics after being fired from Springfield Elementary when Krusty Burger took over the cafeteria. Bart tells her that Homer's Krusty Burger is hiring. Gil is interviewed by Homer for the job, but Homer tells him to leave when Homer realizes Gil sold him the restaurant. Marge offers Gil a free soda, but it only angers him (even though the cup has a "million-dollar winner" game piece on it). Doris appears and tells Homer that government standards are lower than Krusty Burger standards, and suggests that Homer could improve on lowering his standards (the worst thing Homer has done was adding roaches).
Homer and Doris go to Herman's Military Antiques to buy some "Bully Beef." Back at the restaurant, the standards have sunk, which now include smelly, expired meat; child labor (Bart and Maggie are working in the kitchen), and putting food orders in air sickness bags (which every customer ends up using). The health inspector shows up and Homer tries to bribe him with money, but he rejects Homer's offer. Homer then punches the health inspector, who demands the restaurant be shut down.
At Krustylu Studios, Krusty is informed about the problems with Homer's Krusty Burger restaurant. The performance of Homer's restaurant dragged down the performance of other Krusty Burgers in the area to the point where they are out of business. Homer has fallen behind on the bills for the restaurant, and a giant Krusty-branded helicopter removes the restaurant. Since Homer owes the creditors a large amount, he has to get a second job at Katie Kate Kosmetics.