In my opinion, meeting in a public place is a necessity for any club looking to grow. I can think of few things more frightening than going to someone's house (that you don't know) to see if you are interested in joining their club. A public meeting space provides a bit more cover for the first time visitor to see if this is a group that meshes with their ideals. I realize that it is very difficult to find an adequate public meeting space, but it is something that every club should try and achieve. A noisy restaurant is not ideal since its tough to have the group conversations that make a meeting like this worthwhile.
Sure, if there are rules against homebrew at that public space, have another monthly meeting at a home or somewhere else so that the true focus of the club (homebrewing) can be exhibited. But providing that public meeting space is an important way to encourage new members to check your club out.