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DENNY’S, NAACP REACH PACT ON MANAGEMENT AND MINORITIES

SHARE DENNY’S, NAACP REACH PACT ON MANAGEMENT AND MINORITIES

The Denny's restaurant chain, which has been accused of discriminating against black customers, reached an agreement with the NAACP that would provide blacks an avenue into managing and owning Denny's franchises.

Jerry Richardson, president of Flagstar Corp., the parent company of Denny's, and NAACP executive director Benjamin Chavis were scheduled to sign the pact, called a Fair Share Agreement, Thursday at the NAACP's headquarters in Baltimore.Neither would comment about the plan on Wednesday. Chavis said last month that it is a five-year agreement that would extend to all Flagstar-owned chains.

Flagstar owns 1,460 Denny's restaurants, 215 Quincy's Family Steak House restaurants, 200 El Pollo Loco restaurants, 530 Hardee's fast food outlets, and Canteen food and vending operations.

"It will impact minority employment. It will impact minority training. It will impact minority ownership of franchises," Chavis said. "You will see this as a historic model that we're going to also offer to other persons in the corporate community."

The pact emerged out of talks launched 18 months ago between Flagstar, based in Spartanburg, S.C., and the local chapter of the National Association for the Advancement of Colored People, Chavis said.

It comes on the heels of federal lawsuits alleging that Denny's indulged in practices that discriminate against blacks.