I've been twice and wouldn't recommend it. The food is adequate at best. The prices are expensive for what you get (bucket of braised chicken, couscous, etc), and they really push the wine. I think it's really touristy.
There's a similar place in Alexandria, Casabalanca I think it's called. Same setup but the food is much better and more reasonably priced. It's also less cave-like. Same dancers though. I've seen them at Jaleo as well.
I ate there last year with a group of people and it was still good. Still the same dishes I ordered 25 years ago, but I think the food is quite satisfying, especially if I only go every 5 to 10 years or so. And the kids will love sitting on couches, eating with their hands, and watching the belly dancers (and maybe even get invited up to dance). Have fun.
I went there for my bday a couple years ago and the food was just ok but I liked the experience. You eat with your hands and that tend to be messy with kids. For example, they brought out a whole chicken so we had to tear things apart. The atomosphere was great - they had belly dancing and comfy couches.
It's worth it to go at least once. It's not a place just for a meal, and it would depend on age and maturity of the kids.
Short answer, it's an experience more along the lines of Midevil Times than any place that serves say, kebabs.
Also, I went with a group for a birthday, and that seemed to be about the best way to take it in.
There are two seatings per night I think. There are 30 or so little sections of sofas, and either you take over a section with your group, or you are seated with others.
The servers come around and take the drink order and maybe an app or two, and it's put out in front of the group at large, per sofa section. Then there is a belly dance show, and then they start bringing out the main courses.
The food is good. You eat with your hands a lot, including a whole baked chicken that falls off the bone. I don't recall that there is any real choice of what you have, but there might be an overarching choice that I forget about.
Again, it was perfect for a birthday party, though I wouldn't be too eager to go back even for that scenario any time soon.
Probably the neatest part for me was the wall of photos, including of the Stones.