According to the way the New Jersey State Liquor Authority operates, a municipality may only have a certain number of bar and restaurant liquor licenses based on the population of that town.

So if someone opens a restaurant, the only way they can obtain a license is by buying an existing one, since there is a waiting list for restaurants waiting to obtain one from the state when and if the town's population grows.

But although BYO places lose revenue because they can't sell liquor, I believe that in some cases the BYO policy brings in more business for them and more than makes up for it.

I am a big wine drinker and, all things being equal, I would much rather bring a $10-15 bottle from home than pay $30-50 for the same wine in the restaurant.