I'm not going to comment on the right thing to do here . . . honestly, in Fran's place I would at least consider sabotaging the guy. However, I do think its important that whatever the consequences, he learn what he did. Not make a racist comment . . . maybe he had a bad day, or maybe he's a racist pig . . . it doesn't matter for the purposes of this situation. Because racist or not, he did something that is almost certain to ensure his failure in life if he does it again.
No, what he did was say something very rude to a stranger, not knowing who that stranger was, and who that stranger knew. One should never do that . . . because you never know who they are . . . and what they can do to you. Two quick examples:
My father was interviewing a young lawyer for a job at his firm (he's a senior partner). The young lawyer started ranting about how he thought it was really strange how all those old school lawyers wore red suspenders. At which point Dad stood up and shrugged off his coat . . . to reveal . . . red suspenders.
One of my best friends while I was in high school at a ruthless social climber step-mother . . . probably know the type. She strongly disapproved of me, with my scruffy hair, leather jacket and sports car . . . obviously trash, of course. Throughly nasty to me. And then, for reasons I now can't remember, the topic of the Binghams (the richest people in Louisville at the time) came up while I was at their house. I can't remember now why, or precisely what I said, but I revealed that my parents had known the Binghams since before I was born and were often invited to their parties. The look of horror on that woman's face . . . and she was always VERY nice to me after that.
In other words, this young man had better learn that you never know WHO you are talking too . . . and what they can do to you if you act like an a-hole.