Initially opened by owner Mike Porco as a restaurant called Gerdes, it eventually began to present occasional incidental music.
The Fifth Peg's debut bill was gospel folk singer Brother John Sellars and Ed McCurdy, writer of the anti-war classic "Last Night I Had the Strangest Dream".
On October 23, 1975, at a celebration for Mike Porco's 61st birthday, Dylan's Rolling Thunder Revue staged a dress rehearsal and played its first real concert.
Folk City is the place where many of the 1960s folk-rock and '70s singer-songwriters first found their voices, and shows included future stars such as Janis Joplin, Jimi Hendrix, The Mamas and The Papas, the Byrds, The Lovin' Spoonful, the Youngbloods, Emmylou Harris (who also waitressed at the club), Joni Mitchell, Phoebe Snow, Loudon Wainwright III and many other well-known names.
Folk City, under new ownership, underwent a revival, bringing back folk legends like Odetta, Arlo Guthrie, Ewan MacColl ("The First Time Ever I Saw Your Face"), Maria Muldaur, Eric Andersen, The Band and others, and also introducing a new breed of singer-songwriter and expanding its boundaries to a wider range of rock music, especially alternative music like Richard Thompson, Pentangle, Elvis Costello, Sonic Youth, The Bongos (who made their debut there backing up Helen Hooke of The Deadly Nightshade), Yo La Tengo, the Replacements, 10,000 Maniacs and many others.
A new wave of singer-songwriters found a home at Folk City during this time as well, such as Suzanne Vega, Shawn Colvin, Lucinda Williams and comedians Adam Sandler, Chris Rock and others.
From Martin Mull to Andy Kaufman, many comic actors and comedians got their early start at the club: Adam Sandler, Chris Rock, Kathy Kinney, Carol Leifer, Richard Lewis, Mary Kay Place, Larry David, Jim Belushi, Andy Breckman (creator of Monk), Martin Mull, Steve Buscemi and more.
Actor/director Matt Mitler created "Theater Night at Folk City," where singer/performer Fran Maya introduced Steve Buscemi and his partner Mark Boone Jr. (Sons of Anarchy) who became popular mainstays at the venue.
Other artists in the vanguard of the performance scene who frequented "Theater Night" include John Kelly, David Cale, Georg Osterman, Kestutis Nakas, and Anna Kohler.
A new wave of singer-songwriters found a home at Folk City during this time as well, such as Suzanne Vega, Shawn Colvin and Lucinda Williams.