They were basically buildings or floors rented out to simply be a place to relax, kick back, do some quiet work, play pool, drink/smoke in what I can only imagine were velour jackets, etc. In practice though, they were very expensive and mostly an upper-class affair.
I feel like we could do better these days with say, 4000 sqft. of mixed-use space on the border between an industrial and residential neighborhood where rent is reasonable.
In my city a hotdesk at a co-working space starts at $250/month for just 2 days a week. So I go to cafes, partly because of cost, but mostly I prefer the ambience and staff there (much friendlier, better music, coffee on demand). If my local cafe chain had a $300/yr gold membership/sponsorship, I'd buy that in a heartbeat.
On the other hand my cafe doesn't sell Club Mate or Mate Mate, so betahaus definitely/easily beats Perth there! :)
It's like that restaurant that only allows up-front-paid reservations. It's kinda obvious once it's brought up, but goes against how that industry usually works