Elaine invites Alex to her party for art dealers for moral support, but asks him to lie about his occupation.

After a ride in Alex's cab, a widow decides to rent him out as her chauffeur.

Elaine dates a congressman who badly needs self-confidence.

Latka's visiting mother finds Alex's company more appealing than her son's.

The cabbies are wined and dined by a film company looking for ideas for a movie they are making about taxi drivers.

The cabbies are disturbed by Alex's nonchalance when confronted with the news of his father's heart attack.

The drivers try to make a cabbie out of a refugee from the '60s who hasn't quite put his life together.

Latka plans to return to his homeland to fight in a revolution.

On Elaine's advice, the cabbies pool their money to buy a painting.

Jim is sought out by a detective, hired by his wealthy father to locate him and give him plane tickets to come visit him in Boston. Jim explains to the gang that he has been estranged from his family after dropping out of Harvard in the 1960's and changed his name from Caldwell to Ignatowski. Jim agrees to go to visit his father and brings Alex with him, who is curious about what Jim's family must be like. At his father's mansion, Jim's oddness upsets his father and they get into an argument during dinner. Jim is asked to leave, but Alex speaks to Jim's father privately to try to smooth things over. It turns out Jim's father still thinks of Jim as his favorite child, but it hurts him to see him wasting his life when he had so much potential. Jim comes in and convinces his father that he's got a happy life and doesn't need his father's money and they share a moment before Jim leaves.

When Latka's grandmother dies, he is pleased that she has left him her famous cookie recipe, complete with a supply of the secret ingredients. He bakes up some for the cabbies to enjoy, but the cabbies don't enjoy them. Nonetheless, Latka begins his own cookie business. In the days to come, the cabbies find that they are indeed starting to inexplicably like the cookies, and are also unusually happy and energetic. When Jim samples one, he determines that the secret ingredient is cocaine—which accounts for why everyone's behavior. Upon learning this, Alex visits Latka (busy baking cookies to fill supermarket orders) to tell him the bad news. Latka is noticeably high from the cookies, and hallucinates that Famous Amos tells him to do whatever it takes to be successful. Although Latka can no longer sell the drugged cookies, he is excited at the taste of capitalism because it means he's now a true American.

Jim picks up two men in his cab and overhear them talking about the secret to success: dynamic perfectionism. Jim takes it to heart and decides to use the technique to reach his goal, which he won't reveal to the cabbies. Soon, Jim becomes the perfect cab driver, setting company records on every shift. After a few weeks, Jim gives up, announcing that he's reached his goal and can no longer stand to work so hard. He invites the gang over to his apartment to reveal what he's been working so hard for. Upon arrival, they see that his goal was a room full of televisions, with satellites, cable, VCRs, and video games—his ticket to the global village. The gang is unimpressed at first, until each of them gets sucked into watching exciting things on the various televisions.

After Latka is rejected by a snobbish, but beautiful woman at Mario's, he decides to change his image by taking some time off and studying Playboy magazines and English language tapes. When Latka reemerges from his sabbatical, he has lost his accent and now is a lounge lizard who goes by the name, Vic Ferrarri. He soon easily picks up on the woman who had rebuffed him earlier. Although amused, the cabbies become concerned about the changes Latka has gone through, since he has now lost all of his nice qualities and is constantly hitting on Elaine. Alex tells Latka/Vic off, and later Latka appears at Alex's apartment, saying that he's sorry and doesn't want to be Vic anymore. Alex works with Latka and manages to get the old Latka back, although there is a twinge in Latka's eye that suggests Vic isn't gone forever..

Tony becomes the manager of a promising young heavyweight boxer at his gym, but after the boxer wins a major fight, the ""syndicate"" (which turns out to be some doctors looking for an investment, rather than the mob) makes Tony an offer he can't refuse and takes over the boxer's management.

Louie becomes scared of nuclear war after hearing someone talk on Donahue, and he sets up a bomb shelter in the garage. He schedules a weekend drill with Jeff and Tony in tow, but finds he's too ""soft"" to survive if war really broke out, since he is unwilling to throw Jim (who has stowed away in a radiation suit) out of the shelter.

Bobby, who has moved to Hollywood, comes back to the garage for a visit and announces that he's filmed a pilot for a new prime-time soap opera. During his visit, he learns that the pilot has been picked up as a series and Bobby throws a party at the Plaza Hotel to celebrate. He soon learns that although the series is a go, they no longer want Bobby to appear in it. Bobby is upset and entertains the idea of moving back to New York, until Alex convinces him to follow his dream in Hollywood.