Mr. Krabs, born Eugene H. Krabs on November 30, 1942, was the son of Betsy Krabs and an unknown father. He is a descendant of the medieval King, King Krabs. Ever since medieval times, his family has kept a secret recipe for the secret sauce of the family burger- the Krabby Patty. Later in life, Krabs would go into business selling these. In his childhood, times were rough and Mr. Krabs and his family were poor. Mr. Krabs' mother had to sew rags for clothes. Their neighbor, Old Man Jenkins of whom Mr. Krabs thought as family helped them through rough times.
Ever since birth, Krabs and Sheldon J. Plankton were best friends. While at the carnival, Mr. Krabs was amazed at a penny he found, which Plankton told him all about money. Since then, Eugene H. Krabs has always been a penny-pinching financial genius, like he is in the present day. In the episode "My Pretty Seahorse", Mr. Krabs told SpongeBob of a story about his father giving him a dollar at the age of five years old. He recalls that he loved that dollar; however, he spent it on a soda, one hot day at the beach.
As a result of Mr. Krabs being poor, he was teased upon at Poseidon Elementary School where Plankton was his only friend. The only place to get a burger in Bikini Bottom, was Stinky Burger, which was owned by a wealthy citizen, Stinky. Krabs and Plankton wanted to get a burger there but Stinky did not like them hanging around his restaurant. After seeing Stinky's wealth, this inspired Krabs and Plankton to create their own burger. When they finally completed it, no one was around to buy it. Upon seeing Old Man Jenkins there, he was the first to try the "Plabs burger." However, the burger was contaminated and Jenkins died. This caused Plankton and Krabs to argue about the burger. Plankton attempted to steal the formula, which ripped in half. Plankton took their burger batch and decided to go into business alone. A shelf in their dump restaurant collapsed, which combined certain ingredients together to form a perfect burger batch. Both Plankton and Krabs attempted to sell their separate creations separately, where only Krabs succeeded. Since the recipe is said to be an old Krabs family recipe, Mr. Krabs' accidental recipe for a burger patty Mr. Krabs' career began after a war, where he was secluded in a deep depression that seemed endless. His luck changed when he bought a local bankrupt retirement home, "The Rusty Krab," which he decided to turn into a restaurant, adding a K to "Rusty". He decided to go into business selling his family's Krabby Patty burger. It was revealed to be a family secret in "Enemy In-Law." and it was King Krabs who named the burger, back in the Middle Ages. In 1959, a chum famine wiped out all of the chum crops, causing Krabs to give breaks to his employees.with his family's secret sauce. This lead Mr. Krabs to start a business which lead his family out of poverty. Mr. Krabs and his family lived in a pink house where Betsy Krabs lives in the present and his bed and toys are still there. Krabs will do anything for money. He once sold Spongebob to the Flying Dutchman for 62 cents. He also gave his employees a bill instead of pay because they kept goofing off (such as breathing, standing, or tying ones shoes). On a more disparate note, he also attempted to retrieve a dollar (or the fragments of it) after it had been put through a blender.