The first series transmission dates were brought ahead to January 2001 due to the success of Kay's first home video stand-up release Live at the Top of the Tower, released in November 2000, and That Peter Kay Thing winning Best New TV Comedy at the British Comedy Awards, which meant the series began broadcasting before editing had even been completed on all episodes.
The Phoenix Club is home to entertainment of all types, including bingo, singing, cabaret and a wide range of themed nights.
In an attempt to diversify and attract more customers, the lounge is later converted into a successful Chinese restaurant named "The Golden Phoenix".
In the first series, the room was shown as a home to the games supplied by "Dodgy Eric", such as the wonky snooker table, the bucking bronco and the child's aeroplane ride.
Following the staging of the highly regarded local talent contest 'Talent Trek' a vengeful Den Perry burns the club down.
With the authorities taking a dim view of Potter's poor attitude towards fire safety and suspending his licence, he then rebuilds the club on the cheap with Jerry as the licensee.
But he has to contend with a power cut that leaves the club in the dark, the theft of the bingo machine, a German-speaking "Das Boot" arcade machine, Max the doorman injuring himself and a racist folk band called "Half A Shilling" (with the lead singer played by Tim Healy).
The band are ostensibly singing about Holy Communion Shoes, although journalist Deborah Quinn detects the racist metaphor in the song entitled "Send The Buggers Back".
The auditioning act at the end of the episode is a pair of spacemen, one on a spinning disc, miming to a David Bowie song.
There is further misfortune when two men in overalls walk in off the street and steal the television set, with the staff doing nothing about it, except for Kenny Senior who kindly hands them the remote control.
It's a huge success, until Jerry's blatantly biased shoot-out between teams from Lancashire and Yorkshire gets violent and a drunken horse tries to have sex with the bucking bronco.
Jerry St. Clair has booked psychic medium Clinton Baptiste (Alex Lowe) for the club, following a recommendation by Den Perry.
Brian and Jerry then have to attend a fire safety seminar at the Banana Grove Club presented by Keith Lard (from That Peter Kay Thing), who was arrested for "interfering" with dogs, but was acquitted due to lack of evidence.
Throughout the episode, their relationship progresses, until Beverley (played by Jo Enright) reveals to Brian that she works for the DSS and was sent to investigate him for fraudulent disability claims.
He proceeds to have a psychotic episode, with unintelligible language delivered menacingly towards the audience and the house band onstage whilst striking the drummer's cymbal with his hand.
However, Brian tells him to keep pretending to be ill because the club got the rights to host Talent Trek because he told the organisers that Jerry is dying.
Tensions boil when Brian has to hire a Right Said Fred tribute band called 'Right Said Frank' for the grand finale due to Les Alanos performing a Karate Kid musical with the local youth club on the same night.
Despite everything, Jerry can't bring himself to leave the club and turns down the cruise ship job offer.
After the flames are put out, a firefighter reveals the fire was caused by a discarded cigarette or cigar, leading Brian to believe Den Perry was responsible.
Still undeterred, Brian travels to Blackpool to visit an old friend, Frank Cartwright (played by Jim Bowen), owner of the Hotel "Le Ponderosa: Sunshine Indoors".
He finds Les working as a butcher, Kenny Senior as a lollipop man (constantly lying to the kids crossing the road), Ray Von DJing at a fairground, and Holy Mary in church.
In what was to become an iconic moment for the series he calls Max and Paddy as they are driving elderly Asian gentlemen to a mosque and singing at the tops of their voices to "I Could Be so Good For You and Tony Christie's classic hit "Is This The Way To Amarillo?".
A power cut in Brian's home sees him stuck on his stair lift all night until Jerry breaks his door down the next morning.
A ladies night has been arranged, which causes Paddy to go on stage dressed in nothing but a fake moustache and leather thong, and carrying a trident.
Max and Paddy spot the man they were meant to kill in town, and are later confronted by his angry wife, who hints that she has put a hit out on them.
However, in a memorable series of scenes, all of the staff from the club dress up to become acts, including Holy Mary as Lulu, Ray Von and Les Alanos as Adam and the Ants, Kenny Senior as Britney Spears, Young Kenny as Meat Loaf, Jerry as Eminem and George Michael, Brian as Elton John and Spencer as Gary Glitter.
However, he is unaware that Brian has switched on a radio microphone on his desk, meaning that the entire club has heard the conversation.
During an interview with Danny Baker for Peter Kay In Conversation, Kay stated he resents allowing his shows, including Phoenix Nights, to be repeated as it "dilutes the quality" of the programme, citing Only Fools and Horses as an example of a highly regarded programme "ruined" by excessive repeat showings.
However Dave Spikey, in interviews with The Sentinel and the Croydon Guardian in late 2009, claimed that neither he nor fellow co-writer Neil Fitzmaurice were aware of any plans to bring back the series.
In August 2014, it was reported that Kay was in talks to revive Phoenix Nights in the form of a series of live shows for Comic Relief in 2015.