Its not a sequel to Sponge Out of Water....its a prequel/origin story to the entire Spongebob series.
I'm gonna disagree on the food and I will point out why in a second.
And while it does have iconic locations (Chum Bucket, Crusty Krab, Spongebob, Patrick, Squidward, and Sandy's home, Mermaid Man and Barnacle Boy's cave, etc), it comes down to ROI. The main food options for Spongebob is the Krabby Patty and the 20 milliion variations, Triple Gooberberry Sundae, and maybe the Kelp Shake. So now what's gonna set a Krabby Patty from a regular burger? Chum bucket food can't be served because to be authentic to the series, that food was nasty and I don't see them selling the other food options.
Upon further research, Viacom stated in their court case in 2016 preventing a Krusty Krab from opening in Houston that they, Viacom, planned to open their own chain of restaurants which likely make probably why Universal hasn't made a Krusty Krab yet. (of note, there was one Krusty Krab in Palestine but I'm pretty sure the courts and government are more worried about other things than copyright infringement)
It also probably why none of the other licensed locations have a Krusty Krab as well. So without that food option, whats the point of Spongebob than say oh we have Spongebob?