At about this time McDonald joined another company, this time presenting children's shows in conjunction with the Inner London Education Authority. In 1982 he and another member, Hilary, left to form a three-person musical comedy troupe, The Cheap Shots, with McDonald's close friend Sakal providing the music. The threesome developed "The Chip Shop Show", a series of spoof musicals popular on the newly burgeoning London alternative comedy circuit, making many appearances at London's The Comedy Store alongside Ronnie Golden, John Hegley and others, including several Future Red Dwarf players.