Underpants Gnomes

Underpants Gnomes is episode 217 of Comedy Central's South Park. It originally aired on December 16, 1998.

In the South Park episode titled "Gnomes (Underpants Gnomes)", the Underpants Gnomes are a community of underground gnomes who steal underpants, notably from Tweek.

The Underpants Gnomes have a three-phase business plan, consisting of:

  1. Collect underpants
  2.  ???
  3. Profit!

None of the gnomes actually know what the second phase is, and all of them assume that someone else within the organization does. A similar business model is also found in one episode of Arthur, where an organization of pets form the Sock Exchange. The gnomes specifically satirize dot-com businesses with poorly devised business models, although the satire also lends itself to any ill-conceived business plan. The three-step business plan has become a recurring joke on websites like Slashdot, Fark, MetaFilter, and other sites, with various things substituted for the first step.

In the episode, Tweek (who appears for the first time here) stays up very late and subsequentially sees the Underpants Gnomes stealing his underwear. At the same time, Tweek's father manipulates the boys into giving a report condemning "Harbucks" Coffee, his big-company competitor. The town agrees to vote whether or not to allow big companies in South Park, but ultimately, after the boys talk to the Underpants Gnomes about business, it is decided that big companies are good, since after all, companies have to be good to get to be so powerful; Tweek's father agrees to work at Harbucks as the manager.

The Underpants Gnomes also appear in another episode, Red Sleigh Down; in it, they appear as Santa's elves; it is explained that they work on their own for most of the year, but assist Santa during the Christmas season.

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