The Belchers are invited to cater the Glencrest Yacht Club's holiday boat parade, but they are confused as to why.
Teddy is hired as the Yacht Club Santa. He gets to go on the Santa Schooner, the last yacht in the yacht parade that is loaded with presents.
The kids want to get in line for the presents, but Bob and Linda need their help preparing the food.
Bob asks the president of the Yacht Club how he heard of their restaurant and he tells him that Jimmy Pesto, a member of the yachting community, recommended Bob.
The kids finish their work and try to get Teddy to give them gifts early, but he says no.
Bob thinks Jimmy is going to pants him in front of everyone.
The kids get Gus to take them to the Santa Schooner. Teddy catches them.
The president invites Bob and the other vendors on stage to thank them, but Bob sees Jimmy approaching and the two of them start fighting.
Bob and Jimmy fall into the water.
Teddy lets the kids pick presents.
They dry off in the Yacht Club. Jimmy tells Bob that he thought the members would like Bob's food, and knowing that Jimmy recommended him, they would let him join the club.
The kids feel guilty for getting presents before the rest of the children and return them.
For their selfless act, Teddy saves them a remote control car.
Bob gets the president to let Jimmy into the Yacht Club.