Why not?

TANSTAAFL

Restaurants that routinely put out "free" bread include it as part of the overhead. Not sure just how it goes onto the books, but it must be there somewhere - rather like the glass of water, the lights, whatever heats the stove/oven, etc.
I am sure that moving it to a for-charge item would also change the accounting rules.

Some, of course, offer "specialty" breads - eg, one made on-premises rather than bought in bulk from a supplier, and may have a mix of "free" and "pay" breads.

In other words, I just do not understand the "controversy" here. Other, perhaps, than having the cost of the bread "hidden" from view.

The Japanese restaurants I've been to , including sushi bars, don't charge for a bowl of rice. Like the bread, it's part of the overhead. I know a few Indian places that offer free Naan.

If it guarantees that the customer leaves feeling full and satisfied, be it bread or rice, it's legit.

It's the restaurateur's option but I've always found it mildly irritating to be charged extra for ordinary bread.

In Germany, it's the norm to charge for slices of bread, pretzel sticks, and Brötchen eaten from the basket on restaurant tables. Of course, one might argue that German baked goods are worth charging for!