It was popular in Britain between 1850 and 1960, and was an extension of the 'musical saloons' held in pubs and taverns in the early decades of the 19th Century. When special venues, known as music halls, were built for this kind of entertainment, the tradition of serving alcohol and sometimes food was retained.
The popularity of music halls reached its peak during the First World War, when they became associated with patriotic songs such as We Don't Want to Lose You and Keep the Home Fires Burning.
Listen to some music hall songs on Spotify: Champagne Charlie (1867)
Nellie Dean (1905)
Keep the Home Fires Burning (1914)