The Gnome was jazz club attached to Majestic Theatre complex in Midtown Detroit. 

The Majestic Cafe
In 1976 in an effort to “clean up the neighborhood,” the Zainea family acquired the space north of their Garden Bowl. This stretch of property housed a trophy making shop and in 1978 was renovated to open The Gnome Restaurant. Seating only 40, the Gnome was a unique spot decorated throughout with stained glass, traditional middle eastern cuisine, live jazz on weekends and live classical music during Sunday brunch.

Source: http://handmadedetroit.com/2007/08/03/getting-to-know-the-majestic-theatre/