If $G$ is finite, then ${\mathcal F}_k(G)\otimes_k {\mathcal F}_k(G)\to {\mathcal F}_k(G\times G)$ is indeed an isomorphism, for the naive algebraic tensor product. Only if you want to carry over this idea to other contexts, e.g. $G$ being a Lie group, then you'd surely need a different version of tensor product. I don't know if the book elaborates on that later on.