I'm 5'4" and the term just makes me cringe. I don't normally think about my height unless someone else brings it up or I need to reach the top shelf, but I don't need encouragement in that case... just a ladder.
I already know what I did wrong, I said "thanks, you too" when the person at the concessions said "enjoy the movie". Doesn't mean I'm not gonna cringe...
Honestly, if I ran a catering business I might put up the same sign. What's the worst that can happen? 3 horse funerals?