From Muppet Wiki

Codzilla appeared in My Dinner with Codzilla, a faux movie preview that ran as a sketch in episode 101 of The Jim Henson Hour.

The story involves Louie Anderson on a dinner date with this Godzilla-like monster, in which Anderson reveals his insecurities about being headstrong with his life decisions. This is presented in direct juxtaposition with the damage and destruction that Codzilla brings to the restaurant they are dining in.