In the downstairs lounge, a few minutes before the Act 2 curtain for "Me and Juliet" rises, the ushers comment on the remarkable conclusion to Act 1—although the audience has noticed nothing unusual ("Intermission Talk"). As Act 2 of the internal show starts, an enraged Bob is searching the theatre for Jeannie and Larry. Unable to find them, he takes up position at a bar across the street where he can watch the theatre doors ("It Feels Good"). The perspective shifts to the onstage action in "Me and Juliet", where Don Juan and Carmen are on a date ("We Deserve Each Other"), before moving to the manager's office where Larry and Jeanie are hiding out ("I'm Your Girl"). Mac has only just begun his lecture to them when Bob enters through the window, having heard familiar voices. In the ensuing fight, Bob knocks out Mac, but when the electrician grabs for Jeannie, Larry strongly defends her. The fight ends when Bob accidentally hits his head on a radiator and is knocked out as well.