Denny's Does Some Of The Right Thin Gs

On May 24, Flagstar apologized for apparent racism at some of its Denny's restaurants and agreed to pay $46 million to black patrons who have made more than 4,300 complaints to the Justice Dept. about discriminatory treatment. But the company still has plenty of work to do on a seven-year plan to improve minority-business practices. Denny's, which has no minority franchisees among its 1,500 restaurants, is considering 28 minority applicants, none of whom is black. And it purchases only $20 million, or 3.3%, of its supplies from minority vendors--well below the company's seven-year target of 12%. While Flagstar now has one black director, only 7% of its managers are minorities.

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