The Danish verb smøre is a general verb meaning 'to spread' or 'apply' a substance onto a surface. It is used for butter, sunscreen, cream, ointment, and similar substances. So its basically a wordplay, calling it a butter shop or butter stall

One can pick what I suspect is cognates piecewise and arrive at something almost intelligeble and equally weird:

at smøre = to smear en bod = a booth

Smørebod ~> Smear booth

🌺

Without using a translation service, I read it as “smearbody” which tracks hahaha