Desmond Bell from Park Avenue, Northern Ireland, who allegedly turned up drunk at Raba restaurant on August 31, became aggressive and started hurling abuses at the staff.
At one point, he even picked up a cloth and fashioned a makeshift turban for his head, the Shetland Times reported.
Bell was held and taken into custody and spent a night in jail prior to his appearance in court this week.
He admitted punching a man on the head in a racially aggravated manner.
Bell also pleaded guilty to behaving in a threatening or abusive manner, shouting, swearing and being racially abusive towards members of staff.
"He spoke with a mock Indian accent but, despite being repeatedly asked to leave, launched a tirade of racial abuse," the report added.
"I asked him what he would like to say about this and he said he was heartfully sorry, and would like to apologise to everybody," his defence agent Tommy Allan was quoted as saying.
Fining him, Judge Philip Mann said, "I hope you (Bell) will reflect carefully on your future behaviour."