The Muppet Theatre The Muppet Theatre is the setting for " The Muppet Show " , where it was first established over the course of five seasons of television . It is a grand old vaudeville house that has seen better days , but still manages to suit the showbusiness needs of the Muppets . The building ' s exterior is first seen in the series ' coda , " The Muppets Go to the Movies " , where the camera pans back from the stage , out the front doors , and provides a full view of The Muppet Theatre name on the building . Kermit the Frog serves as a house manager to the theatre which is owned by Scooter ' s uncle J . P . Grosse ( a fact Scooter is often happy to reiterate with his amphibious boss ) . According to a 1991 storybook , the theatre was built by a stage actor named John Stone in 1802 . In " The Muppet Show " , Kermit identifies the structure as The Benny Vandergast Memorial Theatre , but following the Muppets ' residency , The Muppet Theatre name becomes prominently displayed on and . The British spelling of Theatre can be attributed to its location in London ; while locking up the doors at the end of " The Muppets Go to the Movies " , Miss Piggy asks Kermit to walk her to The Tube , London ' s subway system ( " I love to walk to The Tube ! " , she exclaims ) . After " The Muppet Show " , the location of The Muppet Theatre becomes more ambiguous ; either as a result of renting playhouses in different cities , or through the magic of the Muppets ' inconsistent continuity . Most stage areas occupied by the Muppets are either called The Muppet Theatre in name or bear some resemblance to the their original home on " The Muppet Show " . For example , commercials for Polaroid , " The Muppets Celebrate Jim Henson " , Weezer ' s " Keep Fishin ' " music video , and others , are close facsimiles of the original theatre ( sometimes with modifications ) , and are most likely meant to serve as such . " It ' s a Very Merry Muppet Christmas Movie " clearly establishes a theatre located in New York City , as Piggy ' s apartment ( in an alternate universe ) has a view of the twin towers of New York ' s World Trade Center . The plot of the TV movie involves the theatre being in jeopardy of finding itself repurposed as a night club . Its owner ' s plan is ultimately foiled by Pepe the King Prawn when he registers the theatre as an historical landmark ; the document uses the Americanized spelling , The Muppet Theater . A third definitive location was established in the 2011 film " The Muppets " , where it ' s situated within the Muppet Studios lot in Hollywood . The El Capitan Theatre served as The Muppet Theatre exterior during filming , returning the name to its British spelling , The Muppet Theatre . Rooms . Defined areas seen in The Muppet Theatre include backstage right , the dressing rooms , the attic , the canteen , the prop room , the storage room , the boiler room , the stage , the house , the stage door lobby , and the back alley . In " The Comic Muppet Book " and " Bo Saves the Show " there is also a cellar where the monsters stay . Behind the scenes . Steve Saklad , production designer on " The Muppets " , was charged with re - creating the theatre interior for the 2011 film . The set itself was reworked from a 1925 set built for " The Phantom of the Opera " . Of the task , Saklad said : Special tribute was paid to Muppets creator Jim Henson , with the theater ' s curtain rail system donning the installation date of September 24 , 1936 , the day Henson was born . The date can be spotted briefly in a scene that shows the Muppets sleeping on the rafters and in hammocks on stage .