Kurt tells the story of Sodom and Gomorrah in his own crude fashion, to the general amusement of the bar. Without warning, Sylvia kicks him out for saying the word 'cunt'. A customer named Rick (Rick Shapiro) is interested in Sylvia and tries to talk to her, but she shows no interest. Pete has a discussion with Ricardo (Craig muMs Grant), a childhood friend who is now a NYPD officer detailed to guard the mayor. Pete wants help to make the bar a landmark, so that Sylvia has more difficulty selling it. Horace's daughter Alice visits the bar with her boyfriend Eric (Conner O'Malley); awkward conversation ensues. Horace meets a woman named Rhonda (Karen Pittman) at the bar. She spends the night with him. The next morning, Rhonda suggests (but never confirms) that she might be a trans woman. Horace isn't sure if she is joking, but is forced to consider his own attitudes towards transgender people. During the conversation Horace tells Rhonda that his two children were born at about the same time, one to his wife Sarah and the other to her younger sister Rosemary. Sylvia gets good news regarding test results related to her cancer treatment.
The series is set in a run-down family-owned bar called Horace and Pete's in Brooklyn, New York. The bar has been owned by the family since 1916 and has been passed down through several generations, always with a Horace and a Pete in charge. The current owners are the 49-year-old Horace Wittel VIII, who inherited the bar when his father Horace Wittel VII died one year earlier, and his 52-year-old cousin Pete.