The scene in question happens in the third act of Shazam!, after the title character has revealed his identity to his foster family.
In order to escape Sivana’s clutches, Billy must teleport his family to another location with his new powers.
And it turns out that Seth Green is one of the background actors that are present after Billy’s second visit to a strip club.
And when Freddy tells him to “think of anywhere”, which results in the group of kids instantly appearing in the strip club that Shazam previously entered during his training montage.