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Originally Posted by ktspktsp
Each country has its own habits. In Iceland, for instance, there's no tip whatsoever. So I would imagine Icelanders would not be very good tippers when they're in the US. It's not about people of a certain nationality being 'cheaper', it's about growing up in a different environment with regards to tipping. I do think the US system is pretty bad since it underpays the waiters and therefore they really depend on the tips.
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+1. It works differently in different places. A friend of mine worked at a restaurant here in the UK where the waiting staff received ZERO percent of the service charge. Unfortunately they were all migrant workers and so felt like they couldn't say anything. I therefore always leave tips in cash.
I should stress that that is likely not the norm here - just a rogue greedy restaurant owner who clearly doesn't care about his staff.