I have a kendo tree view which I am populating using a hierarchical data source. I want to display few nodes in red color if that node is soft deleted from database table. (Soft deleted records are identified with a database field "DEL_FLG. If this field is set as Y, the record is considered deleted. Below is the way I am populating the tree. Could you please tell me how do I soft deleted records in red?
       var treeData =  new kendo.data.HierarchicalDataSource({
        transport: {
            read: {
                url: NsMenuMaster.urls.getMenuTreeUrl,
                data: data,
                datatype: "json",
                type: "POST"
            }
        },
        schema: {
            model: {
                id: "MenuConfigUid",                  
                children: "Child"
            }
        }
    });
    $("#MenuTreelist").kendoTreeView({
        dataSource: treeData,
        dataTextField: ["MenuText"],
        dataValueField: ["MenuConfigUid"],
        height: 1000,
        template: "#: item.DelFlg # == 'Y'" ? "<div style='color: red'>#: item.MenuText #</div>" : "<div style='color: black'>#: item.MenuText #</div>",
        checkboxes: {
            template: "<input type='checkbox' name='StudentClassID' value='#= item.id #' />",
            checkChildren: true
        },
        select: NsMenuMaster.onSelect
    });
				
                        
Add a template config to the TreeView options, i.e:
and some kind of template
Simple Example: http://dojo.telerik.com/@Stephen/UtobA
Additional Details after question updated
Change your template to
as the ?: syntax is extremely difficult(if not impossible) to encode properly as a kendo template with mixed value rendering with arbitrary javascript, so it is just easier to use an actual if-else statement.
Updated example with one red node: http://dojo.telerik.com/@Stephen/esened