Feeling that the guys treat him like a kid, Chachi falls asleep in a booth at Arnold's, and has a dream that he sells his soul to the devil's nephew.
In hopes of working his way up the corporate ladder as a writer, Richie takes a loading dock job at the local newspaper and learns about life on the other side.
At a college party, Richie is crowned King of the Delta Gammas, but loses control after a troublemaking frat boy nicknamed Bullfrog slips a Mickey Finn into his drink behind his back.
When Chachi is left in charge of closing Arnold's for the night, he gets distracted after he finally (after years of trying) convinces Joanie to go on a date with him.
As the blaze spreads, Fonzie, Potsie, and Ralph get trapped in the restroom, but are rescued by Richie and Lori Beth who use their car to break open the gated window.
The next day, as the gang surveys the completely destroyed Arnold's, Chachi admits that it was his irresponsibility that caused the disaster, which infuriates Fonzie.