Mr Palmer told the court: "He said it was the Muslims and Pakistanis in Manchester and London who were the real problem, and not people like us.

"I was completely gobsmacked because I'd only asked for a sausage sandwich. I didn't know how we'd got on to Muslims and Pakistanis."

He said Gardiner spoke about Muslim "no-go" zones in Manchester and he had challenged this, saying it was an urban myth.

"I didn't want to talk about it – I just wanted to eat my lunch," said Mr Palmer.

He described how the pensioner had then lifted some sauce bottles on his counter, pulled out some laminated sheets of paper, and handed them to him, saying: "Read this if you want to educate yourself."

When Mr Palmer refused, Gardiner told him: "Then you're in the wrong place if you want food from me. Do one!"

Simon Farnsforth, for Gardiner, asked Mr Palmer if he had strong views about religion and Muslims, and he replied: "I have a strong view that everyone is entitled to follow their faith."

The court heard that in his police interview, Gardiner told officers: "Muslims are taking over and that they hate Christians."

He also said he believed not enough was being done to "quell" them.