Deputy Dave and Sally Jean go out parking, and Dave sees Skip's jeep and Kevin's car, both apparently abandoned. He hears screaming on the dock and pulls his gun, but it is only a group of friend, practicing for Liz's "horror video". After Dave and Sally leave, Liz, Skip, Annie and Buzz get in Skip's jeep and drive away. Michele and Kevin stick around, and she playfully runs and hides from him. Michele conceals herself in an old, rusty bus, as Kevin picks up and hits a shovel against a fence (containing squealing hogs). Just then, a huge, dirty man named Buddy arrives with a long-handled meat cleaver and chops Kevin's face in half. He enters the bus and slices Michele to death with the cleaver.
The next day, Tom goes to see Harold, Lester Bacon's attorney and advisor and complains about Lester not selling his property. The two of them drive to Lester's house (next to a large meat-packing factory about to be shut down). There, Tom and Harold meet Sheriff Borden (who happens to be Liz's father). The old man Lester answers their knocking, and Tom makes a final offer of $55,000 to buy his property, allowing Lester to stay and work as a consultant. Lester is told that the demolition of the slaughterhouse would create employment opportunities for many people, as well as get the county tax assessor off his back. Lester grumbles about Tom's equipment and bad meat (claiming that it's 30% fat), and says that he could do better with his hands, knives and fewer men. The sheriff tells Lester that the assessor's office is foreclosing his property and he has 30 days to vacate.
Meanwhile, the group of friends are at a local restaurant, talking about the party the other night and Liz's video.
Back at on Lester Bacon's property, his son Buddy takes Lester to a room and shows him the dead Michele and Kevin. Lester is a bit unsettled, thinking that they are in a heap of trouble, but he tells Buddy: "at least you made good clean cuts". He also tells Buddy that Tom, Harold, and Sheriff Borden are the ones who deserve such a fate.
At the restaurant, Liz tells her friends that she wants a "creepy" place to film, and Skip suggests the old slaughterhouse.
Lester phones Harold and says that he has decided to work out the offer with Tom, and he invites the man over.
Dave, after being told of the worried parents of Michele and Kevin who did not come home last night, checks out the dock and then goes to the slaughter house. He walks inside and calls for the two teenager. Dave soon finds a dead, hanging cat (Buddy had eyes the feline earlier while siting in the hog pen). A large metal sliding door is shoved on his gun-toting hand, chopping it off.
Buddy shows Lester the dead Deputy Dave. Lester responds: "you've gone hog wild!" Soon after, Harold arrives and Lester takes him to a dark room of his house, where he asks the "jury" (the dead Michele, Kevin and Dave) if they believe Harold's claim that he has not deceived Lester. They raise their hands (with Lester's help) and Buddy squishes Harold's face in.
Meanwhile, the sheriff goes to the Lakeside Hotel (where Dave has been spending his lunch time), and Sally tells him that she has not seen the deputy since that morning.
Back at the slaughterhouse, Buddy puts on the dead Dave's policemans bloody shirt, hat, sunglasses, belt, gets in the cop's car and drives around the area. On the main road, Sally waves at the passing police car at "Dave" and is chased until the police car stops. She sees Buddy getting out of the car, screams and runs back to her car. Buddy hits her windshield with a nightstick and then drops a rock on it. Sally runs out of her car and tries to look for a place to hide, but Buddy grabs her and slits her throat with a knife.
A little later, Tom arrives at the slaughterhouse where Lester meets with him and as they look at an old saw machine, Buddy appears and grabs Tom from behind. Tom tries to tell Lester that he is sorry about everything and that his motivation is "only business", but Lester just laughs as Buddy then casually picks up Tom and drops him into the machine. Tom is gorily sawed and chopped up into fleshy bloody parts.
That evening at the Pig Out, a town dance, the power goes out (due to a storm), and many people leave. Buzz says that it is now the best time for filming at the slaughterhouse. Skip then makes a $20 bet that the girls cannot last one hour at the slaughterhouse. Liz and Annie are dropped off at the place while the boys are sneaking around with masked (used in Liz's video).
Elsewhere, Sheriff Borden finds Sally's car with the damaged windshield and Dave's patrol car with the door standing open. The sheriff then goes back to his car and radios in to connect him to the county sheriff's department for backup.
Back at the slaughterhouse, Liz and Annie realizes that the boys are outside trying to scare them. Liz looks for a way to get behind the two guys and scare them instead. The boys split up and Buzz gets inside the building. Skip is at the window, and Annie laughs until Buddy suddenly appears and whacks Skip. Annie screams and runs, but Lester appears and grabs her.
Liz walks to the front door and sees that everyone is gone. At the same time, Buzz walks into a room, hears a noise, and is hit in the face by Buddy.
Liz calls out her friends names and she eventually finds a hanging, still-living Annie, as well as the dead bodies of all the other people Buddy killed. The father-son duo are there and Buddy grabs Liz. Meanwhile, Sheriff Borden learns that Tom and Harold have mysteriously disappeared.
Buddy and Lester hold Liz down on a table and Lester talks about "bucherin'", saying that a meat cutter like himself and Buddy have the skills like a surgeon. Lester slices one of Liz's fingertips to prove to her that it is one of the most sensitive part of the human body. When Lester turns and hears Sheriff Borden enter through the front door of the slaughterhouse, Liz kicks Lester and runs away. She finds her father and runs to him. Buddy appears and the sheriff tries to shoot him, but hits the blade of his meat cleaver. Sheriff Bordon and Liz run outside into the pouring rain. As Sheriff Borden pauses at his squad car door, Lester appears and stabs him in the back. Liz picks up her father's gun and uses it to shoot Lester. She then helps the wounded sheriff into his car. She also gets the keys to start up the car just as Lester rises and knocks at the car windows. She turns around, shifts the car into reverse, and runs over Lester, crushing his head and finally killing him. The sheriff tells Liz to drive away and radio for help. But in the final shot, Buddy suddenly sits up from the backseat where he had been hiding and swings his knife at Liz who screams....