Police say 32-year-old Zachary Michael Ginsberg of San Jose fired at least two rounds from his car towards Fleming's Prime Steakhouse Monday afternoon.
No one was hit, but one shattered the window of the restaurant.
Investigators claim Ginsberg had been sending threatening text messages to his former supervisor as a result of personal conflicts.
Ginsberg has been booked into Santa Clara County Main Jail. He faces charges of attempted murder and shooting at an occupied building.
Anyone with information about this incident is asked to call our 24-hour dispatch center at (650) 329-2413. Anonymous tips can be e-mailed to paloalto@tipnow.org or sent via text message or voice mail to (650) 383-8984.
VIDEO: Bullet fired into restaurant at Palo Alto shopping plaza; police search for suspect
Bullet fired into restaurant at Palo Alto shopping plaza: Police
Scary moments Monday afternoon in Palo Alto as gunshots rang out in the parking lot of the Stanford Shopping Center, sending shoppers running for cover.
The shooting comes as the holiday shopping season is just getting underway.
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One bullet went through the front window of Fleming's Steakhouse.
"People said they seen a dude running with a gun through the mall," said Jamie Luna who works in the shopping center.
Accounts that spread quickly among shoppers.
Palo Alto police confirmed that there was not a shooter who ran through the mall, but believe there was a shooter who fired two shots towards the restaurant.
"We have a witness who saw somebody, what I've been told was a handgun with an extended magazine out of the window of the vehicle and fire towards the restaurant," said Sgt. Brian Philip with Palo Alto police.
One shot went through the front of the restaurant and the other hit a parked vehicle.
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"I just heard gunshots but it sounded like firecrackers," said Christian Dixon who works at a nearby store.
"I don't know what happened though, but people were scared they were running out of the restaurant," said Randy Luarasi who works nearby.
Those at the mall took cover in stores and restaurants, recording video of officers with guns drawn searching the property.
"There were about 50 people in a giant dressing room area. We kind of went in there for quite some time then we were able to go so it was scary and uncertain time we just didn't know what was happening," said Lisa Gruman who was shopping with her family.
Investigators are now looking for an individual who drove away from the shopping center in a black Chevy Camaro.
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Officers say the mall is safe and no one was hurt.
"It had to be a reason or something for them to actually target Fleming's but people are crazy. It's America, it could happen anywhere. I get it it's Palo Alto, it's a little nicer area but it could happen pretty much anywhere," said Luna.
Officers haven't released a description of this shooter but tell ABC7 News that they will investigate this "to the ends of the earth to figure out who did this."