Obviously it was rebuilt because in Chocolate With Nuts, SpongeBob, Patrick, Mary and her mother went to the restaurant and booked out the whole restaurant just to dine there. In that same episode, Squidward attempted to get in although he was not allowed to. SpongeBob has once rented the house using Tom's money and did it with Patrick Star.
In Le Big Switch SpongeBob also worked here in exchange, and brought Krabby Patties. It is revealed that the main chef of Fancy! is Mr. Le Schnook, who is a greedy purple selfish villain. He is extremely wicked, and SpongeBob has become the Exchange Chef of Fancy! He brought Krabby Patties, but then brought back the popularity of the Krusty Krab, and also Fancy! went bankrupt after the owner died of a heart attack from his reaction to that.
3 weeks later, an independent franchiser of Pizza Castle restaurants found the abandoned Fancy!, which was now open-for-lease. The franchiser purchased the building and placed the Pizza Castle logo on the Fancy! sign (as the "Fancy!" text was painted over in white paint after it went bankrupt and closed down).
- It in it's current form, a Pizza Castle restaurant, is seen in the episode "Road to Monster Jam".