The next morning, Basil hangs the moose head again, but one of the antlers keeps drooping. There are just a few minutes remaining until the fire drill, and Sybil calls to remind Basil of the drill and say the key for the fire alarm is in the safe. Basil retrieves the key, but he trips the burglar alarm, which the guests mistake for the fire alarm. As Basil tries to explain, the guests ask to hear both bells so they can tell the difference. Hearing the fire bell from the demonstration, Manuel and Polly think the fire bell means the drill has started, so Basil has to explain the situation to them, too. After the demonstration, Basil says the real drill will start in 30 seconds, so the guests stand about in the lobby, to Basil's annoyance.
In the kitchen, moments before the drill is to start, Manuel starts a real fire. The drill then commences. The panicked Manuel tries to explain the situation to Basil, but he does not understand and locks the poor waiter in the burning kitchen. Basil lets the guests back in, but Manuel's frantic banging makes him open the kitchen door. Basil sees the fire and tells the guests to exit the building again. He tries to start the alarm again, but he cannot find the key. He hurts his hand trying to smash the glass and hurls the typewriter at it with no success, so he uses the phone instead. He tries to use the fire extinguisher, but he blasts himself in the face, which temporarily blinds him. Trying to help, Manuel accidentally smacks Basil in the head with a frying pan he had been using to try to smother the flames and knocks Basil out.
Basil comes to in the hospital, where he is being treated for a concussion. The confused, disoriented Basil insults the Sister and insists on going home. The Doctor puts him to bed, but after he is gone, Basil sneaks out.