Knight Don Quixote dreams he is facing three Peas in a world made of cooking utensils and foods. He and his best friend Poncho work in a Spanish restaurant of Cafe LaMancha. However, Jean Claude comes in to inform the duo of a new restaurant opening across the street called "The Food Factory", the most successful restaurant in the world. Don is sure they will go out of businesses.
Don assumes his latest dream has informed him to try different themes to win back their customers. This fails, and shortly after, the Food Factory manager offers Poncho a job at the Food Factory. Poncho refuses. Don's next dream convinces him to attack the Food Factory, only to end up in jail. While visiting Don in prison, Poncho learns that salsa is causing Don's bad dreams. He weans Don off the salsa. The next morning, Don claims he slept well. Sheriff Bob claims that he will let Don go if he quits the salsa. Poncho has an idea to open their restaurant for breakfast, as the Food Factory does not open until lunchtime.
The second story opens up to Sheerluck and Watson arriving at Doylie's Cafe to great applause. Both of them claim they have their latest case wrapped up. However, Sheerluck takes all the credit, upsetting Watson. After leaving, Scooter (As a running gag, his English accent is so thick that not even his fellow Englishmen can understand him) informs the duo of a plot to steal the Golden Ruler. At the palace, they meet up with the prime minister and find clues. The police, Fish and Chips, want to solve the case themselves. Back at Doylie's, when Sheerluck takes the credit again for finding the clues, Watson leaves, saying to Sheerluck, "When you want to start treating me like a friend, come talk to me."
The next morning, at Sheerluck's apartment, Scooter informs him that the Golden Ruler has been stolen. He arrives at Watson's apartment, only to be battered by Watson's maids. Back at the palace, Sheerluck is clueless without Watson. He finally realizes his mistake and Watson appears; he has been disguised as one of the palace guards. He explains the clues and says the thief is disguised as a guard. The prime minister cannot match any of them to the crime. Sheerluck trips and accidentally reveals the culprit, who is then arrested.
- Larry the Cucumber as Sheerluck Holmes
- Bob the Tomato as Dr. Watson
- Archibald Asparagus as Prime Minister
- Mr. Nezzer as Bill Trout (F.I.S.H.)
- Mr. Lunt as John Spud (C.H.I.P.S.)
- Scooter as Scotland Yard Policeman
- Pa Grape as King
- Madame Blueberry as Queen
- Jerry Gourd as Customer
- Jimmy Gourd as Philipe
- Clones Unnamed England Woman
Jerry says, "It's sure to be melodious!" in Jimmy Gourd's voice.