I haven't ever gone to a Hooter's. I probably wouldn't take my kids to one, having nothing but its image to judge by. HOWEVER I am married to a teacher, and was once a student (thus had many teachers in the past). I do NOT think the punishment fits the ? lapse in judgment ?. Seriously, she fed the kids in a place where, perhaps the "image" is not in the best taste, to many. But there also is nothing terrible going on there. Short shorts and tank tops. She is on LEAVE because of that.
I don't understand why the teacher couldn't just get a reprimand or something. Seriously, we have no idea how many places she tried to get her group into. Perhaps the place she'd planned on didn't remember to set up tables for 40! (It's happened to us). Perhaps she made the best decision she felt she could, under the circumstances. It's worth being kicked off her JOB?
If I had a nanny for my kids, and the nanny took them to lunch at Hooters (even though I wouldn't take them there myself), I would sit her down and tell her that I don't really want my kids going there...that I am not comfortable with that lunch choice. I wouldn't kick my nanny off the job.
If Grandma took the kids to Hooters while out shopping one day, I wouldn't tell Grandma she can no longer be trusted with my kids. So why do that with a teacher?