It's staff appreciation week at Santa's Village, and to shine a spotlight on the hardworking heroes who keep Christmas running smoothly, host Jesse Palmer asks the baking teams to make peppermint holiday desserts to honor the unsung heroes of the Peppermint Dept. In the main heat, the bakers appreciate the seamstresses and tailors who keep Santa's fit fresh by making radical red velvet desserts. Judges Duff Goldman, Kardea Brown, and Molly Yeh choose the winner of the $1,000 Ghirardelli prize package, and each member of the winning team earns 30 minutes of time that they can use throughout the rest of the season. After one baker from the losing team is eliminated, both teams are dissolved - leaving every baker for themselves going forward.