Ignoring for a moment the 20% premium, the issue is that in the US, (mostly) everyone is American. Unless you're a regular, hospitality has no way of telling wh

Ignoring for a moment the 20% premium, the issue is that in the US, (mostly) everyone is American. Unless you're a regular, hospitality has no way of telling whether you're a good tipper or a bad tipper. There may be "tells" or "feelings", but that's the extent of it. So when you walk into a place, you're going to get the same service as the next guy. Your logic may track for regulars (a repeat customer may tip to get nicer service next time), but that's not the phenomenon that I was describing. If you're in a touristy place and you're not American, if the place in particular has seen enough Americans, they're going to treat you badly because in their mind, you're taking up the table of an American tourist which would give them a lot of free money for doing the same work. I, as a non-American tourist who has never been in that particular place before, have no way of opting out of the "bad service mode" and opting into the "American service mode" – I obviously don't have an American accent. I obviously can't state "I'm going to tip you 20%!" at the beginning of the service – I'd look like a deranged person.