In Season Three, Larry and Jeff's investment in a restaurant leads to laughs when it comes to settling on a chef. Meanwhile, Larry gets into his usual assortment of problems--this time involving a 'nanny from hell,' the betrayal of a rapper, and more.
Larry and Jeff invest in a restaurant with Ted Danson. In lieu of attending his dentist's dinner party, Larry decides to shop for waiters' uniforms, and in the process buys spiffy matching shirts for Ted and himself. But after Danson realizes his shirt has a small rip in it, he demotes Larry in The Wizard of Oz scene they're re-enacting for his daughter's birthday party (Larry refuses to switch from the Lion to the Tin Man). At the party, little Jill Danson misses the piñata and hits Larry in the mouth with her bat. Following an emergency visit to his dentist (who learned why Larry had skipped the dinner party), Larry is left with two abnormally large front teeth and one clean shirt that both he and Ted covet.
About five years after the rest of the world, Larry enters the world of cell phones. Using his new toy, he calls Cheryl and asks her to tell Randy, the chef at his new restaurant, to omit peanuts from the dinner that night because Richard Lewis' new girlfriend, Deborah, is allergic to them. But bad phone reception prevents Cheryl from hearing the message, and Deborah gets sick. A practicing Christian Scientist, she refuses to take medicine to clear up the hives on her face. Richard will not be seen with her at the Emmys that night looking like this, so he and Larry concoct a plan to bake a batch of Benadryl brownies for her to eat. The ruse fails, and that night on TV, the Davids (along with millions of others) see Joan Rivers lambasting Richard and his none-too-attractive date on the red carpet.
Cheryl and Larry get into a fight after she returns from a trip and he's too distracted by a game on TV to greet her properly. To make peace, Larry decides to buy her a bracelet at a jewelry store, but isn't allowed in because of his shabby clothes. After bribing a guy to use his cell phone, Larry calls pal Richard Lewis, who arrives to help--except that the store is now closed for lunch. The pair end up helping a blind man move into his apartment, the jewelry store closes for the night, and Richard ends up coveting the same bracelet that Larry wants to buy.
Larry, Cheryl, Jeff and Susie encounter a "nanny from hell" whose reign of terror is thwarted by twelve sponge cakes. Larry commits a "penis faux pas" after a pool party, and Richard Lewis seeks immortality from Bartlett's Quotations.
After snubbing Paul Reiser's wife, Mindy, Larry breaks a confidence to patch things up, though his decision comes to alienate the Braudys, ruin an Alanis Morrisette benefit, and leave Mindy as aggravated as before. His solution: break yet another confidence.
Larry's mother dies while he's shooting a film in NYC, but he doesn't find out until he returns to LA two days after the funeral. Getting over the initial shock, Larry uses his loss as an excuse to get out a number of unsavory invitations. Meanwhile, Richard Lewis accuses Larry of Indian-giving his meditation mantra and Larry plots to relocate his mother's body at the cemetery.
Over a makeup dinner with the Braudys, Larry openly ponders the question, "When a husband pays the check, do you have to also thank the wife?" with predictable results. Jeff's return home is being ruined by his allergies to the family's corpse-sniffing German Shepherd; but his daughter Sammy won't give him up. Concerned about his agent's welfare, Larry figures out an ingenious way to give the pooch to the Braudys, who are looking for just such a dog.
Larry is accused of betraying the confidences of Wanda's boyfriend, a rapper he met at a party. Later, Larry alienates Jeff's wife Susie by passing on her house-tour offer, then runs into problems trying to replace a sports jacket Cheryl threw out.
Larry proves himself an incompetent Christmas tipper, while both Larry and Jeff prove themselves incompetent at creating believable alibis for the messes they get in. After offending his housekeeper, Larry makes up with her at the expense of his wife. Later, Larry attempts to make up with Cheryl's family for ruining their nativity scene.
Larry figures out a way to fire a chef, and alienate an important restaurant critic, in the days before his new restaurant is scheduled to open. As Susie stews over a misunderstanding with Larry and Cheryl, the Davids spend some quality time at the car wash. With its grand opening at hand, the restaurant owners hire a new chef with a penchant for speaking his mind.