Caroline Hirsch opened her eponymous cabaret in Chelsea, New York, in 1981. She started booking comedians, and these were so popular that was soon booking nothing else. Needing a larger venue, Caroline's moved to South Street Seaport where it gained national recognition as the venue for A&E Network's Caroline's Comedy Hour television series, which won a CableACE award for Best Stand-Up Comedy Series. In 1992, the club moved to a 300-seat space in Times Square. The new club received the American Institute of Architecture Award for Best Interior Club Design and was featured on the cover of Interior Design magazine.
Before he died of cancer, the final stand-up appearance of Bill Hicks' career was at Caroline's in January 1994. Also, Mitch Hedberg performed his last shows at the club before he died in March 2005.