The Denny's Racism Scandal Everyone Forgot About

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.

In 1994, Denny's settled a $54 million class action lawsuit that had been filed against them relating to serious issues of racism and bias at their restaurants. 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.

Because the case is 30 years old, many people have largely forgotten it, if they were aware of it at all. However, this was not Denny's first brush with the legal repercussions of discrimination, nor was it the last. Sadly, this has been a recurring theme at the restaurant for many years.

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. Then in 2022, Denny's settled a lawsuit filed for $45,000 by a Mexican employee who was harassed regarding his national origin.

The 1994 lawsuit, one of the biggest of all time, came less than one week after the company reached an agreement with the victims of the 1991 incident. It followed efforts to work with the NAACP to promote diversity and fairness. The men in the 1994 case were Secret Service agents from then-President Clinton's detail. The public relations couldn't have been worse.

While it appears Denny's corporate should do more to train franchisees operating under its name, it seems these efforts have been insufficient. In 2025, yet another discrimination lawsuit was filed against Denny's, this time in Pennsylvania. Five Black customers claimed they were turned away and given an excuse about an electrical issue in the building. But on their way to the restrooms, they saw no issues and multiple white customers dining. The case is ongoing. In the meantime, maybe try IHOP instead.