Before setting out to create and establish notable movie theaters in New York City, Rothafel pursued any job he could get to make ends meet.

In 1908 he first began his show business career in Forest City, Pennsylvania, where he created the "Family Theater", a combination cinema and skating rink in the backroom of a local saloon.

He later opened the Radio City Music Hall and the RKO Roxy (later the Center Theatre) in 1932, his last theatrical project.

The Music Hall featured the precision dance troupe the Roxyettes (later renamed The Rockettes), which Rothafel brought with him from the Roxy Theatre.

In 1923 a journalist noted that Rothafel’s the Regent Roxy theater attempted to appeal to Jewish audiences with its spectacular music capabilities.

Through 1925, live broadcasts of his weekly variety show, Roxy and His Gang from the Capitol Theatre (New York City), became increasingly popular.

One estimate from 1924 placed his typical radio audience at about five million listeners, and he was said to receive thousands of pieces of fan mail weekly.