As Sam, continue downstairs and follow the balloons. Make your way to the lower level and enter the door there. There will be an ensuing QTE/choices sequence here so if you're using this guide, plan ahead.
There are several factors to consider here:
Once the Psycho shows up, throw a base at him. Next, be careful of the single QTE along the stairs. Once you've reached the broiler room, choose to run.
After encountering the closed door, choose Pull. After successfully getting through the door, lock it and close the hatch. Walk towards the wooden door and open it. Move ahead and you'll have the option to Run or Hide. Choose HIDE then press the appropriate QTE button. DO NOT MOVE. After this, the chapter will be complete.