The art of smoking pipe-weed was said to have begun in Bree and from the PrancingPony it spread among the races of Middle-earth.
The PrancingPony had been recommended to them by Tom Bombadil and Merry was familiar with the inn because Brandybucks occasionally traveled to Bree and stayed there.
But Gandalf and the Hobbits stopped at the PrancingPony on their way home in October of 3019 to tell Barliman that the war was over and that people would soon be traveling up the road to his inn once more.