Manuel sets the kitchen on fire, and Basil makes all of his guests leave the building so he can take care of it. Basil panics and struggles to perform basic tasks, such as pulling the fire alarm, leaving it up to his wife, Sybil, to put out the fire.
Dwight is confident that experience is the best teacher. He simulates a real fire for his co-workers to find out if they understand what to do in the event of a fire. During the simulation, he tries to give them advice, but they are too panicked to pay attention to him.
Smoke emits from the kitchen in Hooper's Store, and Alan and Maria take the proper fire safety precautions: Alan tries to set it out with the fire extinguisher, and Maria calls the fire department. When they arrive, the firefighters explain what both kids and adults should do when there is a fire. One of the firefighters, Bill, explains to Elmo the function of each piece of equipment that he wears to alleviate Elmo's fear of firefighters.
The students tell their substitute teacher, Mr. Gullible, that their regular teacher does a number of absurd things during a fire drill for the safety of the class. Mr. Gullible complies with their ridiculous requests.