The average wage in Spain is 2268 EUR per month (very low compared to many places), though people in the service industry will earn less than that of course. In the villages a coffee is about EUR 1.50-1.80 and a set 3-course lunch is around EUR 11-13 (but more in the big cities).

There are a lot of cultural differences (obviously) but the cost of living is generally less overall. Cafes and restaurants here are often staffed by either younger people still studying (and usually living at home), or older people.

It isn't a route to riches by any stretch, but people get a set minimum wage which should be enough to afford rent/shopping without needing to be supplemented with tips. That said - life is hard and the cost of living is definitely going up here. You wouldn't earn hundreds of Euros in tips even in the best Spanish restaurants though.