The Krusty Krab 2 was opened right next to the original Krusty Krab by Mr. Krabs, but it’s not frequently mentioned in later episodes, suggesting it might have been closed or simply not highlighted in the storyline.
In the SpongeBob SquarePants movie, Mr. Krabs decides to expand his business by opening the Krusty Krab 2, which is essentially a clone of the original Krusty Krab restaurant. The second establishment is placed directly beside the first one, and Mr. Krabs appoints Squidward as the manager of the new restaurant, much to SpongeBob’s disappointment, who had hoped to be promoted. The opening of the Krusty Krab 2 is a significant plot point in the movie, as it leads to the events where King Neptune’s crown is stolen, and Mr. Krabs is frozen, prompting SpongeBob and Patrick to go on a quest to retrieve the crown and save Mr. Krabs.
However, after the events of the movie, the Krusty Krab 2 is rarely, if ever, mentioned again in the series. This lack of continuity is not unusual for the show, as SpongeBob SquarePants often resets the status quo at the end of each episode or movie. As a result, the fate of the Krusty Krab 2 remains unclear. It could be that the restaurant was simply not a focus of subsequent episodes, or it may have been closed down or merged back into the original Krusty Krab. The show’s episodic nature means that many plot developments are not carried over from one episode to the next, leaving the Krusty Krab 2’s ultimate fate to the imagination of the viewers.