Hattie threatens to sue Vivian for libel, but Floyd reminds Hattie about the fact that the diner was shut down—albeit only for 24 hours—by the Board of Health, so there are technically no lies on the billboard. Questioning whose side Floyd is on, Hattie assures him that she's gotten the last laugh. Floyd eyes Hattie, who has a suspicious-looking black streak on her chin and on her hand, and asks, "What did you do?"
"Look at it," Hattie says. "Read it," referring to the sign.
Floyd goes to the window to read the sign and realizes that Hattie has spray-painted over the word "Vivian" with another v-word—the one for a specific part of the female anatomy. Upon reading the beginning of the word out loud, Floyd has had enough and sends Hattie back to the kitchen to clean up and get ready to work.
Watch this scene here.