Cabaret is a form of entertainment having comedy , song , dance , and theater . Cabarets are mostly performed in a restaurant or nightclub with a stage for performances and the audience sitting at tables ( often dining or drinking ) watching the performance . Cabaret is a form of entertainment featuring comedy , song , dance , and theater , distinguished mainly by the performance venueâ '' a restaurant or nightclub with a stage for performances and the audience sitting at tables ( often dining or drinking ) watching the performance being introduced by a master of ceremonies or emcee ( MC ) .