"When it comes to popular diners, it's hard not to include Denny's in the conversation. The chain has been around since 1953. By 2009, the restaurant was selling 12.5 million Grand Slam breakfasts every year, and by 2010, it had 1,600 locations. For all of the restaurant's popularity, it has not been without its fair share of controversy over the years. Many people forget that Denny's has faced significant legal challenges, including a 1994 racism scandal that cost the company $54 million."
"The lawsuit followed sweeping accusations that, at multiple locations, Black customers were treated differently from other diners. Discriminatory practices included refusing to seat Black customers or requiring them to pay before receiving their orders. There were even petty incidents, like not providing a free birthday meal for a teenage customer. In one case, a manager claimed he was told to close the restaurant if "too many" Black customers showed up."
"In 1991, before the 1994 class action, a group of Black customers in San Jose were told to pay before receiving food. This seems to be the earliest incident of this behavior on record. By 2014, the issue had returned, and another lawsuit was filed, which was settled mid-trial. In 2017, the same thing happened yet again, in which Black customers were told to pay before receiving their meals. In this case, Denny's fired the employee."
Denny's began in 1953 and grew into a major diner chain, selling 12.5 million Grand Slam breakfasts annually by 2009 and operating about 1,600 locations by 2010. The company settled a $54 million class-action lawsuit in 1994 after accusations that multiple locations treated Black customers differently, including refusing to seat them, demanding payment before service, denying a free birthday meal, and instructing managers to close when "too many" Black customers arrived. Similar incidents appeared earlier in 1991 and recurred with lawsuits in 2014 and 2017; in 2017 an employee was fired. In 2022 Denny's settled a $45,000 lawsuit brought by a Mexican employee.
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