The The Krusty Krab 2 closed a few days after it opened.
Which is why it is not in any post movie episodes. The movie was All Just a Dream. Plankton's Dream, to be precise
He just seems too evil to be real - enslaving anyone? His morality kicks in after the "spongebob and patrick almost die on the heat lamp" scene. He wakes up after "Krabby Road" The ice cream SpongeBob and Patrick ate had alcohol in its recipe
Adding liquor to desserts, especially ice cream, is quite common. It's usually a small amount, only to enhance the flavor, but considering the amount they ate, that they probably never consumed alcohol before and starfishes and sea sponges don't have livers, it's not a surprise that it made them absurdly drunk. SpongeBob could drive the Patty Wagon because he only cannot drive a boat.
In the cartoon, to this troper's knowledge, we have seen SpongeBob fail only when driving a boat. It could be that SpongeBob just cannot drive a boat but otherwise is a good driver, seeing as he drives the Patty wagon no problem and in 20,000 Patties Under the Sea, and Sandy's Submarine drives a submarine no problem. So SpongeBob is not a bad driver per say, but rather just a bad boat driver. The movie is a metaphor for the struggles women had to face to be accepted into traditionally male roles.
Think about the time where women weren't allowed to be CEO's, soldiers, actors, etc. Mr. Krabs literally told SpongeBob that you have to be a man to be a manager, and the only difference is that SB was a "kid," not a woman. They also doubted that SB would make it alive in the six-day trip because he was not a man. The "mermaid magic" and fake mustaches were an obvious metaphor for women who would dress as men to do what only men are allowed to do. In the end, SpongeBob accepts being a kid, but says that being a kid does not make him less capable of anything. Replace "kid" with "woman," and you have a perfect feminist movie. The Krusty Krab 2 was moved to another part of Bikini Bottom, or another town entirely
Mr. Krabs eventually realized he would make more money by spreading his restaurants further apart. In the episode "Lost in Bikini Botton" reveals similar looking eateries with similar names (the Krabby Krust and the Krusty Klam), one of which could have once been the Krusty Krab 2. Also in "Mutiny on the Krusty", a customer suggests calling the local Krusty Krab after a rip current blows them into another location, implying the business is becoming a franchise. Could be a smart move in case Plankton makes off with the formula.