From Wikipedia:

According to Knopfler, he was in New York City and had visited an appliance store. At the back of the store was a wall of televisions which were all tuned to MTV. Knopfler said that standing next to him, watching the TVs, there was a male employee, dressed in a baseball cap, work boots, and a checkered shirt, who was delivering boxes. As they were watching MTV, as Knopfler recalled, the man came out with lines such as, “What are those, Hawaiian noises?.. That ain’t workin’,” etc. Knopfler then requested a pen to write some of these lines down, and eventually put them to music.