1964-2002 I spent a lot of time in Europe - school, business travel - weeks at a time - years at a stretch working for European branches.
there is a long history that supports the "service included model" works.
actually, in Europe tipping above and beyond does exist - when you pay the bill one may 'round up' - used to be to the next 'one' of whatever, then the next 'five' of whatever then the next.... inflation; what can one say.
the "service included model" does not guarantee good service.
personally experienced bad / really bad service in:
- tourist spots. servers don't give a hoot - you'll never be back. typically servers develop a sour attitude because they are dealing with hordes of people/patrons who have not a single clue how "life works" in that (specific) culture. and they're all in a big hurry because the bus leaves in 20 minutes; "hurry" is not a defined thing in a European cafe....
- 24x7 spots - like a train station - required by 'law' to be open / available. servers don't give a hoot - you'll likely never be back - and that spot wasn't your first choice anyway.
and some of it has to do with 'the patron' - sitting in a Salzburg cafe with a batch of American blue haired old bitties at the next table loudly complaining about everything from the service to no mini-soap bars or washcloths in the hotel to how to flush the toilet.
we had splendid service; they did not, as they loudly complained about. their theory that nobody in Salzburg understands English was faulty - their server grasped their loud obnoxiousness and wanted to be as far away as possible. frankly, I'm on his side....
where ever one goes, one can expect a certain level of service in an eatery. it's a sliding scale - "all you can eat buffet" to "high end"
many/most European eateries depend on local repeat business - and not a lot of part time teenager staff...
bad food, bad service, bad ambiance . . . bad bankrupt.
they do not survive - because just down the road is another family run restaurant that does a really good job.
the locals develop their favorites based on some of the most smallest details one can imagine - like "I prefer the silverware at X" - it's real, you can't make this stuff up.
in USA, I'm personally very careful with my tipping.
first one has to separate "the kitchen" from "the server" - I don't take out my "it was lousy food" opinion on an innocent server. the server needs the money to survive long enough to find a better place . . . now, in a 'service included' scenario, there is no financial impact - regardless - not going back there.
then there's the scenario where the server does the job, is available (on patron signal?) for anything special / out of the ordinary.
then there's the scenario where the server offers all kinds of ideas / suggestions / can address (any?) question about the menu/whatever with a non-BS answer - has an eyeball on anything going on at my table that may require his assistance/help/input and does not require a 'patron signal' that the patron has a need, the server is available/responsive and fixes up the situation. the server is not required to be 1000% there - if my head is up and I'm looking around for 'somebody' and the server walks through to another table and "sees" my need, this is the server that gets my extra % tip.
my head is up, I'm looking around, the server passes through to another table and either does not know enough to be aware or worse - ignores clues provided - nah, no big tip for that variety.
then there's the service overkill situation. take a sip of water, somebody appears to 'refill' the glass.
sorry, major intrusion on what I'm doing here....I'm talking to my wife, I don't want you refilling the 10 ml I just sipped out of the water/wine....
in the USA this - and similar - often happens in really high end places that mistake such nonsense activity for 'good service' - when this happens I request to speak to the manager, and tell him to make the sweetie-cloy-fake service go away.