It happened at American Deli in Lower Township.
Worker Lee DeBiase tells WMGM-TV the man threatened to "slice us all up" if we didn't give him his cellphone back. The employees say none of them had seen or had the phone.
A co-worker ducked out back and called police as Mike Houseman said the man started swinging the sword around.
Police have charged 43-year-old Ryan Crump with aggravated assault, terrorist threats and other weapons offenses.
No one was injured.
Information from: WMGM-TV, http://www.nbc40.net