When Mrs. Richards, a demanding woman who is hard of hearing, checks into the hotel, Basil, Sybil and Polly find themselves with a very difficult customer. Meanwhile, Basil bets on a horse that is sure to win, however he must not let Sybil find out.

Confusion arises when Basil tries to catch a girl in a playboy's room after hours, all the while unnerved by a psychiatrist's presence.

Customer dissatisfaction with the Fawlty Towers dining experience comes to a head when an insistent American comes for a stay.

One of the guests has died in his sleep, but Basil thinks it's due to serving him spoiled food.

Basil plans a surprise anniversary party for Sybil but, thinking he's forgotten it again, she walks out just before the guests arrive.

Basil and the rest of the staff are in deep trouble when the health inspector turns up and delivers an enormous list of problems with the hotel. Things become even worse when Manuel's rat gets loose in the hotel.