Selling food is certainly regulated, as is commerce in residential areas. I'm sure the founders thought correctly that when they were small, no one would notice

Selling food is certainly regulated, as is commerce in residential areas. I'm sure the founders thought correctly that when they were small, no one would notice, and when they grew, they could afford to follow the rules. There is certainly a gap, and one that prevents many people from taking the leap. Lots of people have thrown parties that had booze that also had a kitty to help offset the purchase cost. Transitioning to a bar or a party planner is a whole other matter.