What do you usually say, depending on the context and depending if it's US or UK English?
wait in line or queue
In the UK, people say queue. See this: http://dictionary.cambridge.org/dictionary/british/queue_1?q=queue
That link also states "UK (US line)".
In the US it's always line. I haven't heard anyone say, waiting in queue or queued for food. The NOAD also marks it chiefly Brit.
That said, queue is pretty common when it comes to computers. And in some areas it may refer to a braid of hair worn at the back.
"Samurai shaved the tops of their heads and then gathered hair from the sides and back together into a queue. They applied oil to the queue before doubling it forward over the crown, then tying it at the point where it was doubled over."
Wait on line in New York City. Wait in line in the rest of the US.
Good discussion here
Supposedly, New Yorkers wait on line because of Ellis Island having had painted lines on the floors. New immigrants were told to wait "on the line." And, it has changed our local lexicon. (i.e. It is a shibboleth.)
No one in the US ever really says queue. We say 'get on line', 'wait in line', 'don't cut the line', 'line up', 'what a long line!', 'make a line', 'form a line', etc. Queue is reserved for technical usage, such as in computer science where one might create a queue of objects. A LIFO queue (last in, first out), a FIFO queue (first in, first out) are common computer programming constructs. There is no right or wrong. Language is dynamic, ever-changing and tied to whatever is 'normal' for a given culture. What may sound correct to British ears sounds outright funny to American ears and vice-versa, but that's ok. It surely keeps things interesting!