Dave falls for a store model called Myrtle and Mum is hounded out of the kitchen at Bellavista by the housekeeper, Miss Quince.

The show is a big success, and Dad returns to the country, leaving Jill in charge of Cecille's, with a new appreciation for people who live in the city.

There had recently been a ruling that Australian films were no longer eligible as British under the local quotas in England, which hurt their ability to sell overseas.

Hall needed to make a film which was appealed to local audiences and On Our Selection (1932) had just enjoyed a fifth run in Sydney, indicating the market was still strong for Dad and Dave movies.

Hall preferred making drama – "It is so much cleaner", he said, "There is no mess of pies and so forth to be swept from the studio, as there is after slapstick"[6] – but was not as sure-fire a genre as a Dad and Dave film.

In May 1938, as Cinesound were finishing Let George Do It, Hall announced they would make a Rudd film about Dad and Dave inheriting a store in the city.

"[6] "I'm fully prepared for verbal onslaughts from a certain section of the public that considers we are ruining Australia's prestige overseas", said Hall before filming.

"[7] Hall added that "I know that a handful of people will criticise us for continuing to burlesque the Australian cockney In 'Dad and Dave Come to Town', but it will be entertainment, and that, after all, is what patrons pay for.

[14] Bert Bailey and Fred MacDonald repeated their roles as Dad and Dave from the earlier films in the series, but the rest of the cast were newcomers.

[15] Peter Finch plays a young man in love with Dad Rudd's daughter Sarah (Valerie Scanlan).

"[9] "He was almost painfully thin in his early days, with high, prominent cheekbones, and his looks gave no real promise of the handsome, world-class screen star he matured into overseas", wrote Hall in his memoirs.

Norman Rydge said "The restrictions which have been placed upon Australian pictures under the new British Film Quota Act have quickened rather than retarded production in our studios.

While we feel that these restrictions will eventually be lifted, we are, in the meantime, adapting ourselves to the new conditions by making films with a greater appeal to Australian audiences.

"[22] The film was a success at the box office, Ken G. Hall later calling it a "very substantial hit",[23] which matched the earnings of On Our Selection in Australia and exceeded them in New Zealand.

[25] It led to a fourth (and final) entry in the series, Dad Rudd, MP (1940), in which many of the cast of this film reprised their roles.

Hall said in 1939 that "It just goes to show that the characters of ' Dad and Dave ' which many regard as presenting Australians in an unfavorable light, are international in their appeal and that they arc refreshing in their individual type of modern entertainment.

Although a stereotype, he is depicted as a loyal friend of the hero – the "first upfront camp male character to be treated in a positive fashion"[30] and was so popular with audiences he returned in Dad Rudd, MP (1940).