Case 5.14 Denny’s: Discriminatory Service with a Smile

In this cases give us information about a company that has many progresses for itself and its communities. Early, Denny’s has made discrimination for its costumer, franchiser, and other communities, but after the pack, the condition is different. At the next paragraph I would like to give some explanations about it.
On March 24, 1993, a group of minority costumers filed a lawsuit against the Danny’s restaurant that was requiring its minority costumer to pay cover charges and to prepay for meals. On May 24, 1993, six Africans Secret Service agents filed suit against Denny’s, claiming the wait staff at Annapolis, Denny’s had been deliberately slow in serving them (the agents had waited fifty-five minutes), thereby effectively denying them service. Their white colleagues had been served in the timely fashion. Other Denny’s costumers who are in black complained that they were told they would have to pay first if they wanted to eat at Denny’s.
Because of those cases, in July 1993, Denny’s must settle all of that claims by signed a $1 billion pact. In the pact, Denny’s agreed to do the following; (1) buy nearly $700 million in food, paper, and supplies from black-owned business, (2) launch a training and recruitment program to increase black representation in Flagstar’s management ranks from 4.4 percent to 12 percent, (3) add fifty-three black-run franchises, (4) funnel the Flagstar’s business to black accountants, lawyers, ad agencies, and banks.
After signing those settlement, Denny’s have many progresses. Denny’s CEO now tells employees not to discriminate more. Since October 1994, Denny’s has been Save the Children’s largest sponsor. Donations for Save the Children are primarily the result of in-store coin canister donations, a ten cent donation from each All-American Slam and kids menu, and so on.
This Denny’s has been a win-win for both parties. As Denny’s national charity not only gives annual donations for Save the Children, but also gives web support programs to increase quality, out of school children that influenced by drugs, teenage pregnancy, and dropping out of high school. I’m so proud that Denny’s give the initiative provides an opportunity for local restaurant employees, franchises, and costumers to get more involved with those programs in their individual communities.
As those progresses, many magazines tell about Denny’s successfulness; such Working Woman magazine, Fortune magazine, and many awards that Denny’s get. Solving the discrimination problems or minority in working area involved in business ethics. A company must give tolerance for the minorities and settle the discrimination for having the best working condition for itself and all around communities.