It not uncommon in Chicago but it’s usually at places that fancy themselves more upscale than a taqueria.
I’ve only seen it done in restaurants here in the US. (My international travel is pretty limited). It’s not something you’ll see in a Mexican restaurant if there are any actual Mexicans working there.
If you want to see it in action, try a restaurant that caters to yuppies, advertises vegan/lard-free tortillas, believes that anything with lime and fish is ceviche, and makes half their money on cocktails.
I always just wrap it up tightly and stir it up every time I use it. Next time I might try Jack White’s method, though.
Looks around, doesn’t see anyone named Jack White in the thread. 
Saw it done a couple weeks ago at a joint in Denton, Texas.
Nah, it’s just a somewhat pretentious thing that you see at a fair number of Tex-Mex places, IF you order guacamole as an appetizer. The guacamole you’d get with your fajitas or on the side with your plate isn’t made table-side.
I’m pretty sure you could order a side/bowl of guacamole without having the whole table-side thing done; that’s usually something you’d order if you wanted a big bowl for an entire table of people and want a little show as part of the process.
It’s pretty much limited to the mid-range and higher Tex-Mex joints here; the few true Mexican places don’t really do it, and most taquerias don’t bother. And even among the mid-range places, it’s not universal. In a quick sampling of the menus of Tex-Mex places I like, about half had table-side guacamole, and half didn’t.
I actually don’t like the show, but I do like the chunkyness of the table made guac. It’s more like what I make at home. The show bit of the production goes on way too long. I just want to eat it!
Only one place I go that has the same, chunky,* really* fresh looking/tasting, not blended looking at all, guac for everything. It’s a chain, but only in this greater metro area. Has expanded from one store in 1980 something, to 5 currently, all within 10 or 15 or so miles of each other.
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