Vera has a series of premonitions that come true. Mel asks Vera for a tip on the horses. Lucky Esmeralda wins at 20 to 1. Mel's happiness is cut short when Vera discloses a complicated dream that ends in Mel's doom.
Mel wants to take it easy, so he sells out to no-nonsense restaurateur Randolph Briggs. When the girls begin to protest his overbearing ways, he fires each of them, one by one.
When humorless restaurateur Randolph Briggs refuses Mel's offer to buy back the diner, he opens an eatery in Alice's apartment. Alice decides that she needs to help Mel get his diner back.