Denny's Diversity

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In 1994Denny's Dinner was hit with a $54 million lawsuit. The company was forced to make numerous changes in order to survive. Denny's, at that time have been operating the same way for over 20 years without looking at the affects it had on the restaurant. "White males, and rarely white females, were always presented as candidates for employment"(Thorpe Brathwaite). Furthermore, in 1992 none of Denny's suppliers were minority owned companies and by 1993 only one African-American franchisee was recruited. Because of the lack of interest the company showed in the recruiting and diversity areas of the restaurant the company suffered. On the other hand, Denny's made a miraculous turnaround when they focused on key points such as taking ""a holistic approach to diversity" Ray Hood-Phillips, making both cultural and structural changes"(Thorpe Brathwaite). Denny's parent company Advantica decided to make major changes by providing intensive diversity training. Everyone in the company from the board of directors to the cooks and servers received mandatory training to learn about diversity. The company also let go of the 20 year contracts it had with recruiters who were not able to hire diverse employees. Next, the company turned its attention to the structure of the company."The "people …show more content…

"According to their latest study, African-American traffic in Denny's restaurants increased to 61 million visitors in 2000, from 51 million in 1998" (Thorpe Brathwaite). Therefore, not only is the restaurant growing but, there is no indication of another $54 million lawsuit. "Some researchers predict that companies that fail to diversify their talent pools will have a hard time identifying with their target customers and competing with firms that do"(Snell, Bohlander). As the numbers indicate, by diversifying Employees and Venders CEO's are giving the organization a greater opportunity for higher

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