Simon Simpson runs an entertainment agency in Liverpool. At one of his regular auditions in The Bootle Railway Club he sees an aggressive young man fresh from the dole queue who dreams of becoming a professional comedian. Simpson believes the boy has talent and starts to groom him for 'stardom'.

Owner Basil Fawlty, his wife Sybil, a chambermaid Polly, and Spanish waiter Manuel attempt to run their hotel amidst farcical situations and an array of demanding guests.