Kisuk Cha filed suit in Brooklyn federal court alleging he and his girlfriend got receipts for their takeout orders identifying them as "Chinx," the New York Daily News reported.
Edward McCabe, an attorney for the Hooters franchise, said Tuesday the employee who used the slur had quit.
"She was very apologetic," the attorney said. "She said she didn't realize the gravity of it and how offensive it was.
Cha, a 25-year-old Korean from Pennsylvania, said in his complaint filed Monday that he "is haunted by the ridiculing giggles and stares of his persecutor."
Cha's lawyer, Daniel Baek, said the incident was not isolated to Hooters, the New York Post reported.
"There are a rash of cases across the country where customers were identified on their credit card and store ... receipts by racial slurs," he said.
Cha is seeking unspecified monetary damages. His girlfriend is not a plaintiff in the suit.