In a cost-cutting move, Principal Greedyguts has replaced the school lunch lady with janitor Leo Louse. Faced with dishwater lemonade, sawdust soup and other revolting concoctions, Jacob decides that something must be done. With the help of Buford and his new next-door neighbor Mr. Dinglebat (an international spy), Jacob discovers Leo's secret dungeon kitchen, and he reveals the truth about the lunches to their parents. Greedyguts is forced to rehire Bella Bountiful, lunch lady extraordinaire, and Leo Louse is sent back to his lowly janitor's closet.