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Crusty doesn't seem to be a big fan of children; he claims that the reason why he's losing business is because of noisy children in the next-door arcade.
A Pup Named Scooby-Doo
He wanted to close down the arcade because he thought it was making too much noise and was driving away his customers so he dressed up as Bigwig to scare away their's. (The real reason he was losing business was because of the quality of his food. For example, his bread-sticks were made of sticks, not bread.)