They were asked to play an opening song by friend Gary Allen at his Rhythm Lounge in L.A. Anthony Kiedis has recently been to see Grandmaster Flash and knew that he didn’t have to be able to sing in order to front a band, he could rap! AK’s poem about his friends and life he had witnessed in Los Angeles fitted perfectly to a riff Flea was playing and thus the first Chili Peppers’ song, ‘Out in LA’ was written for the gig’… And a suitably over the name top, Tony Flow & the Miraculously Majestic Masters of Mayhem,was penned for the occasion. High on drugs and adrenaline, the group went out and played their one song… and blew the audience away! So much so, they were asked to return the following week with two songs; they did and with the new name of the Red Hot Chili Peppers and thus the legend was born!!!

RHCP Birthday forum thread