Gannett News Service
In the early 1990s, discrimination charges rocked the Denny’s restaurant chain.
Now, it is touted as a model of diversity.
This past summer, Fortune magazine ranked Advantica Restaurant Group, Denny’s parent corporation, at the top of its list of best companies for minorities. And in 1999, the Arthur W. Paige Society recognized the group for outstanding public relations after its settlement of two class-action lawsuits in 1994.
How did the beleaguered chain repair its bruised image? The answer is twofold — James Adamson and Rachelle Hood-Phillips. Both were brought in from Burger King in 1995; Adamson as chief executive, Hood-Phillips as chief diversity officer.
First, Adamson made it clear throughout the company that discrimination would not be tolerated. Then, Hood-Phillips introduced the diversity program that she said had served Burger King well.
"Our approach is holistic," she said. "We trained from the very top of the house. The other thing is examining structure, what I like to call the wiring and plumbing of the company. You look for ways to eliminate everything that impedes inclusion. You do that in addition to training.
"If you do one without the other, it won’t work."
Progress is seen in numbers. Blacks own 53 Denny’s franchises today, compared with one in 1993. Latinos own 34, Asian Indians 195. Other Asians own 71 Denny’s restaurants. Out of 1,784 Denny’s restaurants, 930 are franchised.
In 1992, Advantica had no contracts with minority suppliers. Last year, contracts with minorities totaled $115 million, 18 percent of the company’s food and nonfood purchases.
The company also has diversified its work force. It reports that 48 percent of its more than 46,221 employees are minorities, and women and minorities make up 33 percent of Advantica’s senior management staff. Minorities represent 30 percent of the management at Denny’s.
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