Generally speaking single use zoning in North America combined with parking minimums make it illegal to open a cafe, pub, shop, etc where people live.

people who live there don't want a bar (which here, often means drunk, yelling, rowdy, drunk-driving, publicly-urinating people) going up right next door to their house/condo. Other example of zoning laws would be auto repair shops (15 broken-down oil-leaking cars parked down the street). each city can decide these things.

there are some but only ones which have kept going from before zoning came in in the 40s-60s. that's why they always look old; since then the overhead of zoning means that generally only commercial / managed places have the capital to fight the regulations to just build a little corner where you and some local friends can spend money

note that hanging out and drinking w/out money IS legal, but as soon as you sell a hot dog or a beer, boom now the state has some lawyers for you to talk to and you're 100% blocked until we are satisfied you have done everything we want.