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Workers at a fish bar were abused and threatened after a dispute over the size of portions.
Staff alleged a threat was made to "shank" a delivery driver, while the Turkish owner was told: "You come to this country and try to mug us off."
The eruption was at the Harbour Fish Bar at Lower Sandgate Road, Folkestone, at 4.40pm today.
A spokesman for the business said two customers had bought cod and chips, paying £16, and then left but two or three minutes later returned to complain.
The spokesman said: "They said the fish portions were too small and they wanted their money back.
"The woman had half-eaten her cod so that was refused.
"The man threatened to smash the windows."
The spokesman added the man then went out into the street shouting for people not to use the fish bar, while the woman was "yelling and shouting and putting stuff live on Facebook".
The incident lasted for five to 10 minutes and police were called.
The spokesman said: "It was all so stupid - people were just trying to do their jobs and we believe the cod was a decent size."
A spokesman for Kent Police said: "Kent Police was called to Lower Sandgate Road, Folkestone at 4.40pm on Wednesday following a report that staff at a local business had received racist abuse.
"Officers attended and two people, a 48-year-old woman from Gillingham and a 47-year-old man from Ashford, were arrested.
"Both remain in custody while enquiries continue."
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