As a child, Howard witness his brother drown, and he continues to be traumatized by this. Howard blames his parents for his brother's death.
Now an employee at Plucky Pennywhistle's Magical Menagerie in Wichita, Kansas, Howard is using Hoodoo to exact revenge on people he perceives as mean or neglectful parents. Howard takes a drawing of the child's fear, which the restaurant chain encourages them to do on placemats, and combined with an object owned by the parent. There is power in the child's fear, and combined with the spell, it manifests in reality.
When Sam and Dean arrive in town, one man has been killed by a gaint octopus, and then another is gored by a unicorn. When the janitor Saul offers to give Sam information, he is killed by shark in the kiddie's ball pit.
Another employee Cliff tells Dean and Sam he and Saul heard noises coming from the sub-basement. When one of the waitresses Libby berates her son Tyler, she appears to be the next victim. Sam follows, on the lookout for the giant robot with laser beam eyes (Tyler's fear).
Dean goes to the sub basement, and finds Howard's hoodoo books and equipment, including a cauldron with a fire in it. Howarde confront's him, and tells him he's put a spell on Sam. As Sam watched Libby and Tyler, he is approached by two evil-looking clowns, who attack him.
Dean manages to get a clown statue Howard owns, along with a drawing he did of his brother drowning, and tosses them into the fire. Howard's drowned brother appears, and Howard "drowns".