I suspect that paying at the register cuts down on the amount of tips, which makes it hard for a single restaurant to buck the trend. That restaurant would have to raise menu prices to pay for the lost tips, which makes the restaurant less competitive.
Why can't we just pay at the register and be done with it?
Adding on to the Japanese restaurants. They have a call-button system which is much more efficient than having to flag down a waiter.
And, payment is more common at the register.
This allows Japanese restaurant to have fewer waiters and waitresses working.
You miss out on the interaction with the wait staff, but that's not really why I was there.
Japan is far from perfect when it comes to business practices, but their dining experience is second to none for the most part.