I was in Iceland earlier buying one of those disposable foil turkey trays. The oldish man on the till, who is always very friendly & jovial, said "hey, these are good" and put it on his head pretending it was a hat. Then he said "I'm a Chinaman" and did a "slitty eyes" gesture with his hands. I was a bit taken aback, firstly as he had his bald head on something I was going to put food on and also thought his Chinese impression was rather racist. I didn't say anything and neither did any of the other customers. Instead I just gave a weak smile but was left thinking maybe I should've ticked him off or am I just overreacting??