[3] Time and place: Vienna and environs, beginning of the 19th century In short: Lisi falls in love with Aloisius, but they have no future for the lack of money.
Peperl lends them money to open an inn, but the jealous Plunderer schemes to the couple's business failure.
The music teacher Peperl Geschwandtner is a good friend of the couple, and he lends them the money for a deposit, hoping the enterprise might further his ambition to be appointed as Hofkapellmeister.
But soon he manages through clever newspaper advertisements to lure increasing numbers of eligible young ladies and gentlemen into The Silver Pretzel.
The Princess enjoys the situation enormously and secretly orders the orchestra from The Golden Ox to come and play.
As a consequence of the noble visit, the inn's reputation is greatly enhanced and future customer numbers are secured.