Obama seemed to ignore the comments as he went around the room talking with employees and customers.
Fanning wouldn't even shake hands with the democratic presidential candidate.
Fanning refused to comment on the incident.
Records at the Board of Elections show she is a registered republican, which some say begs the question was she a republican plant?
Restaurant manager Yolanda Lewis said they were given barely a half hour heads up that Obama was stopping by for lunch.
Lewis says Fanning is a regular customer who was there for Sunday lunch.
Local Republican Party Chairman Ralph Regan says Fanning speaks her mind.
During his rally Sunday afternoon, Obama acknowledged that republicans called him a socialist, saying he could take two more weeks of John McCain's name calling.
In the meantime, the restaurant incident has made headlines around the nation and put a Fayetteville restaurant on the map.