Summer semester 2022

MBA 509 Human Resources Management

Section: 01

Topic: Denny’s: A Grand Slam Success Story

Submitted By:

Name: ID:
1. Mariyam Siddique 2010569
2. Siam Ibn Mamun 2120159
3. Farzana Haque 2010511
4. Md. Abdullah Al Mukith 2222890

Submitted To:

Dr. Nazmul Amin Majumdar, Ph.D. (Australia)

ALA Scholar
Table Of Contents
Introduction ......................................................................................................... 2
The Evolution of Fast-Food Industry ............................................................ 2
Present History of Fast-Food Industry .......................................................... 2
History of Denny’s ........................................................................................... 3
Present position of Denny’s ............................................................................. 4
Products & Services of Denny’s ..................................................................... 4
Competitors of Denny’s ................................................................................... 5
Objectives ............................................................................................................. 7
Objective 1: Identifying the primary characteristics of the sector Denny’s
operate in.............................................................................................................. 7
US fast-food chains .......................................................................................... 7
Global fast-food chain ..................................................................................... 8
Major characteristics of fast food Industry .................................................. 8
Objective 2: Identifying Fundamental changes Denny's made in terms of
diversity .............................................................................................................. 10
Objective 3: Identify the lessons that can be drawn from Denny's
experience........................................................................................................... 11
Objective 4: Identifying the effect that diversity might have on a company's
performance ....................................................................................................... 14
Benefits of workplace diversity: ................................................................... 14
Challenges of workplace diversity: .............................................................. 16
Conclusion.......................................................................................................... 17
Recommendation ............................................................................................... 18
References .......................................................................................................... 19

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 Introduction
The Evolution of Fast-Food Industry
Fast food is one of the most in-demand goods today. It is a favourite meal of all of us, from
children to adults, and despite our best efforts to avoid it, we simply cannot resist its taste. Fast
food is a term that is used to describe food that is prepared quickly and provided to clients. The
first place where pre-cooked food was sold was in ancient Rome. Romans were unable to
prepare their own meals since the multi-storey buildings known as "Insulae," where they lacked
kitchens. In restaurants called Popina, Romans used to eat traditional meals made with
vegetables and bread dipped in wine.

Fast food restaurants have expanded to the point where they now have thousands of outlets and
generate millions of dollars annually since being founded in the United States in the 1950s.
(Foods, 2020).There are two main principles in the restaurant business: full-service and limited
service. According to the National Restaurant Association (2021), full-service restaurants with
family dining (Poonam Rao, 2022). The expansion of fast-food industry has started in 1950s,
while in 1960s there has been a growth of chain restaurants and casual family eating
(MEALEY, 2019). In the United States, revenue reached a staggering $200 billion in 2015, a
significant increase from the $6 billion in revenue in 1970. Over the coming years, the industry
is anticipated to rise by 2.5 percent annually. However, fast food outlets restaurants continue
to dominate the American market, accounting for over 30% of industry sales (Fast Food
Industry Analysis 2020 - Cost & Trends, 2022). In the 1950s and 1960s, fast food chains, led
by McDonald's, transformed the restaurant industry, and changed agricultural and the food
delivery businesses (Ganzel, 2007). In the 1930s, Kentucky Fried Chicken first appeared. In
1952, he opened his first restaurant. Insta-Burger King was the precursor to Burger King until
1953 (History To Go – The Evolution of the Fast Food Restaurant, 2021).

Present History of Fast-Food Industry

Fast food sales total more than $570 billion worldwide. In the United States, revenue reached
a staggering $200 billion in 2015, a significant increase from the $6 billion in revenue in 1970.
Over the coming years, the industry is anticipated to rise by 2.5 percent annually (Help, n.d.).

Covid-19 have impacted the global market badly due to lockdown in major food service
industry. Compared to 2017-2019, in 2020 the growth was -10.46%. Due to keep their business

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in track many businesses have started providing quick service restaurant (QSR) industry, The
benefit of online industry was seen during covid (Insights, n.d.). The fast-food sector is steadily
expanding. The COVID-19 epidemic reduced the fast-food sector by almost 20% between 2019
and 2020, but it soon recovered; by the end of 2021, the market is expected to be $3 billion
larger than it was in 2019.

McDonald's offers the best value of any company. In 2020, they made $40.53 billion in sales
revenue, $22 billion more than the chain in second place (Lewis, 2021).

History of Denny’s

Denny's was found by Harold Butler and Richard Jezak since 1953. It is one of the largest full-
service family-style restaurant chain in the United States was Denny's Corporation had 394 of
the company's in 1,546 locations ; the remaining 1,546 were either franchised or operated under
licensing agreements, which brought in $939.4 million in sales in 2007 (McGuire, Denny's
Learns to Manage Diversity, 2009).

At first, they have opened Denny's Donuts in Lakewood, CA. According to Butler's he
promised "To serve the best cup of coffee, bake the best donuts, give the best service, offer
the best value, and stay open 24 hours a day,". After Jezak's left, Butler then changed the
donuts shop concept to a coffee shop with store#8 and has been renamed to Denny's Coffee
Shop in 1959 to avoid confusion with LA restaurants. In 1961 Denny’s coffee shop become
Denny’s and goes international in 1961, opening its first restaurant is Acapulco, Mexico. In
1977 Denny’s have introduced their Grand Slam Breakfast that got them the most hyped. By
1981, there were over 1000 restaurants in all 50 U.S. states. Up until 1989, Denny's primary
office was situated in LA Mirada, California. The office was initially relocated to Irvine,
California, and then to Spartanburg, South Carolina. According to (apnews, 1993) "A party of
21 Secret Service agents stopped for a one-hour brunch, which included six black guys. The
six black males who were turned away sat at one table with one another. All 21 orders were
taken consecutively by the same waitress, who did not service any of them". Later in 1994 they
have agreed to pay the $54 Million. In 1994, they became the largest corporate sponsor, of
Save the Children, a national Charity. Denny's was placed first on Fortune Magazine's list of
"America's 50 Best Companies of Minorities" in 2000. In 2022, Advantica Restaurants Group,
Inc., the parent company of Denny's (Denny's, n.d.).

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 ➢ Denny’s are open for 24/7
➢ They are committed to community
➢ They look forward to innovation
➢ They maintain transparency

Present position of Denny’s

During COVID-19 pandemic Denny’s Corporation, franchisor, and operator of one of

America's largest franchised full-service restaurant chains has been affected badly (Denny’s
Corporation Provides Business Update in Response to COVID-19, 2020). On Tuesday,
Denny's reported fourth-quarter net income of $2.4 million, down from $18.6 million in the
same period last year. The earnings per share decreased from 31 cents to 4 cents. Analysts had
predicted a loss of 5 cents a share for the company, which was a penny worse. According to
FactSet, revenue decreased to $80.1 million from $113.8 million and was thus somewhat below
than the $81.5 million average projection (Maidenberg, 2021). Which have lead Denny’s
permanently closing 15 stores (franchisees) in New York, laying off 524 workers (Taylor,
2020).

Products & Services of Denny’s

With 60 years of franchise experience,
Denny's has honed their craft and
developed enduring strength by focusing
on the things that matter most, making it
the most well-known name in United
States. In addition to the United States,
Canada, Curacao, Costa Rica, El
Salvador, Japan, Mexico, New Zealand,
and Puerto Rico, it also operated over
1,546 restaurants there. At most
locations, Denny's restaurants featured a
casual dining environment and
reasonably priced meals served around-
the-clock. The renowned Meat Lover's
Breakfast and Original Grand Slam
were only two of the well-known

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breakfast options offered by Denny's. A wide range of appetizers, hamburgers, sandwiches,
salads, chicken, steak, and seafood dinners, as well as desserts, were also available on the
Denny's menu (McGuire, Denny's Learns to Manage Diversity, 2009).

Source: (ocrestaurantguides, n.d.)

The services Denny’s are offering are:
• Kids Eat Free: With an adult entree purchase of $6 or more, children eat free.
• AARP Member Discount: Members of AARP receive a 15% discount on your entire
guest bill.
• Deals To Your Inbox: Receiving the most recent information and special offers
directly at your mailbox.
• 20% Off Next Visit
• Birthday Gifts: Denny's provide birthday gift every year.
• A Gift Card
• HUNGRY FOR EDUCATION Scholarship Program: To encourage youth
education and unite communities, Denny's introduced the Hungry for Education
Scholarship Program in 2011.
• ENGAGE RESPONSIBLY: Denny's committee have pledge #engageresponsibly
putting a stop to online hate speech to significantly reduce it by 2025.
• FAMILY & COMMUNITY: Denny’s took the initiative NO Kid Hungry and St. Jude
Children's Research Hospital.
• DIVERSITY, EQUITY & INCLUSION
• The Environment: developed policies and procedures aimed at minimizing the
company's environmental effect by promoting energy conservation by reducing the
amount of natural gas, water waste, waste management, and packaging recycling.
Source: (Denny's, n.d.)

Competitors of Denny’s
The restaurant business was fiercely competitive, and this competition was particularly fierce
among large corporations that owned or maintained restaurant chains.

1. Dunkin'
2. Burger King
3. Subway
4. Domino's

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 5. IHOP
6. Waffle House
7. Taco Bell
8. McDonald’s
9. Krispy Kreme Doughnuts
10. Starbucks
11. Luby's
12. Chipotle Mexican Grill
13. Wendy's

Source: (A Restaurant Business and Technomic Special Report, n.d.)

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 Objectives
The 4 Objectives of this report are:
1. To identify the primary characteristics of the sector Denny’s operate in.
2. To identify the fundamental changes Denny's make in terms of diversity.
3. To identify the lessons that can be drawn from Denny's experience.
4. To identify the effect that diversity might have on a company's performance.

Objective 1: Identifying the primary characteristics of the sector

Denny’s operate in.
US fast-food chains
Purchasing food from fast-food chain restaurants is very convenient and accounts for a
substantial amount of the diet in the U.S. A large proportion of American adults consume fast
food two or more times per week. 15% of Americans’ daily energy intake gets from fast
food. Particularly 37.4% of sales of snacks and meals away from home are at limited-service
eating places such as fast-food restaurants. (Hearst et al., 2013)

After finding the right set of circumstances of a huge and profitable potential market abroad
with a growing domestic market US fast-food chains got a prime motive for entering to
European and Asian countries.

Fast food chains for instance McDonald’s, Wendy’s, KFC, and Domino’s have spread in many
foreign countries as it has developing and immensely competitive domestic market. Fast food
franchising in international markets had also been identified for smaller food service
companies. US fast-food chains have also been attracted to countries like Hong Kong, Belgium,
Poland, Brazil, and China. (Lee & Ulgado, 1997)

For evaluations of fast-food initiation, US consumers give more importance to low food prices.
So, reasonable prices are a significant trait. They do not want to kill their valuable time on pre
and post-purchase conflict or uncertainty about something on which they do not spend too
much time and money. (Lee & Ulgado, 1997) The United States fast food market continues to
be dominated by hamburger fast food restaurants, accounting for over 30% of industry sales.
(Cheng et al, 2011)

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American fast food restaurant chains have been growing more quickly into foreign markets
than locally, with a 13.5% international sales growth reported in 1994, compared to 7% in
domestic sales development. (Lee & Ulgado, 1997)

Global fast-food chain

Globally higher demand of fast-food helped by creating platform to produce processed food
varieties and fast-food chains are attractive and popular because of having longer shelf life and
anyone can travel further distances with no degradation, can be produced in bulk and having
higher profit margins. (Christian & Gereffi, 2010) The fast-food industry is different from the
general food retailer. It has the characteristics of being rapid, convenient, and having a low
price. (Cheng et al, 2011)

Through global expansion Fast-food chains have been fueled their rapid growth. This rapidity
has been improved significantly in developing economies since the 1990s, where the gradual
deduction of market barriers and trade limits made the process of internationalization easier for
leading companies. Yum! Brand is a conglomerate that includes KFC, Pizza Hut, Taco Bell,
Long John Silver, and A&W. (Christian & Gereffi, 2010)

The fast food industry in Asia’s major countries, such as China, Japan, Korea and Taiwan can
also create a production value over US$1 billion every year. (Cheng et al, 2011)

The fast-food revolution had been adopted fast in other countries like Brazil, Mexico, Vietnam,
India, and in Philippines. China symbolizes the penetration of fast foods in developing
countries and the interaction between global and local dynamics. (Christian & Gereffi, 2010)

Major characteristics of fast food Industry

Fast food restaurants are typically distinguished by several major characteristics. There is a
standardized menu, portions and ingredients are tightly controlled, and the food is for
immediate consumption. The universal view of market experts is that fast food will carry on
being a dynamic group due to lower costs comparing with other foodservice outlets and the
pace of service offered.

• Food quality:

Food quality is one of the major characteristics that effects customers’ overall evaluations
toward a restaurant to repurchase intention. The quality of food is deemed to be evaluated based
on the taste, freshness, and how the food is being presented to customers. Food quality is a vital

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thing that should be provided by restaurants to meet the needs and satisfaction of customers.
(Hanaysha, 2016)

• Quick service

Food and beverages need to be served very quickly. There should not be too much waiting to
serve products. Providing service to maximum number of customers in minimum amount of
time is the goal. The whole industry is largely controlled by Quick Service Restaurants (QSR),
which are responsible for large amount of the whole industry revenues.

• Reasonable Cost

The costs of a product or service can affect among customers because they assess the given
value of a purchased product or service and tend to consider its price. Various restaurants have
diverse price points, but the perception of a fair or affordable price has a positive impact on
consumer brand associations. All the large companies have the advantage of economies of
scale, which is displayed in their continuing effort to provide low priced value meals to their
customers. (Hanaysha, 2016)

• Good Service

Good service quality will indeed satisfy the diversified demands of the customers which creates
overall attitude based on experience, which is the comparison of before and after the customer
received the service. Fast food outlets should be ready to accept returns or any customer request
to change what they have already bought. When the actual service result provided by the service
provider is higher than the customer service expectation, then the customer will be very
satisfied. (Cheng et al, 2011)

• Physical environment:

Physical environment consists of all the tangible and intangible elements that exist inside and
outside a restaurant and a well-maintained physical environment in a restaurant should then
provide typical customers’ experiences and makes them willing to revisit the restaurant
frequently. Good physical environment consists of aesthetics, the atmosphere, functionality,
and convenience. (Hanaysha, 2016)

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 • Location:

The place where fast food restaurant is located plays a essential role in its success. It is
Appropriate to strategically evaluate the different variables with the purpose of choosing the
most convenient location. By locating fast food outlets in shopping malls areas, busy
commercial areas will gain business and impulse purchases from customers. Fast food is about
convenience, so to be successful a fast-food outlet should be located in a high-traffic area.

Objective 2: Identifying Fundamental changes Denny's made in terms of

diversity
Denny’s chain has decided to turaround after they had to pay a huge price of $54million.
African American clients of Denny's restaurants have brought class-action lawsuits claiming
that the restaurants refused to serve them (McGuire, Denny's Learns to Manage Diversity,
2009). Denny's chief diversity officer, Ray Hood-Philips, outlined the steps the troubled
business took to become a role model for diversity. She emphasized the importance of
implementing a "Holistic Approach to Diversity" and making structural as well as cultural
improvements. They believed bringing changes in structure and culture can bring a big
difference to Denny’s. Hence, Advantica (parent company) and Denny’s have decided to make
rigorous training on diversity.

The fundamental changes that Denny's have made in terms of diversity are:

1. Training:
Denny's have arranged various level of training where everyone was expected to take part in,
including the Board of Directors and every cook, hostess, and waiter. Because this training
would upgrade their skills, knowledge, and other attributes. Hence, both the server and cook
were required to watch video on diversity and Board of directors had to attend full day training.
The most rigorous training was given to restaurant managers, who attended two days of training
that lasted between seven and nine hours each.

2. Arise in Denny’s “people system”:

To Denny’s amazement they have found they had massive lacking in their “people system” it
is basically the way Denny’s Hire, fire and develop and promoted people. Denny's is aware
that they unintentionally established a diversity gap throughout the entire system. Later, Hood-
Phillips mentioned they did not realize most businesses have obstacles in place which they
haven't realized. They discovered that their hiring procedures were to blame.

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 3. Changes in Recruitment:
Denny's hired companies run by African Americans, Hispanics, and women to utilize their
networks' innate diversity. Their main objective was to recognize the limitations of their own
personal environments and figuring out how to interact with others from completely different
cultural contexts. Phillips Hood said their goal was to reach out to all different type of cultural
people.

4. Performance Appraisal System

After watching Burger King tactics during tenure Denny’s have evaluated their performance
appraisal system. The hiring of diverse people was not rewarded by managers, and diversity
was not traditionally recognized. The company set up a process to evaluate ten core
competences as a result, one of which was appreciating and managing diversity. Denny's have
tied 25% of senior management bonuses to the proportion of women and minorities in each
division. As a result, about 50% of Advantica's 46,000 employees are not just in entry-level
jobs; 32% of the company's supervisory positions are filled by minorities in their division.

5. Rise in Franchise

In 1993, by hiring just one AFRICAN AMERICAN franchisee. The ability of franchise sales
managers to hire and retain minority franchisees was a key factor in their merit increases. The
number of African American franchise owners increased to 64 in 2002. Additionally,
minorities currently own around 42% of the company's franchised restaurants. Advanticas
former CEO Jim Adamson made this all happen.

6. The Diversity Success

The dedication to diversity has paid off. According to the company's most recent analysis, 61
million African Americans dined at Denny's restaurants in 2000, up from 51 million in 1998.
Sales also reached a record $2.23 billion, illustrating once more how advantageous it is for
businesses to prioritize diversity.

Objective 3: Identify the lessons that can be drawn from Denny's experience
All cultures perform in their own ways, and this influences the relative to which one culture
can interact with individuals from other cultures. Businesses that struggle to handle diversity
will experience negative economic and social effects. A workplace culture that allows low
morale, employee turnover, harassment, discrimination, absenteeism, and disruption to work

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teams results in a loss of productivity. Businesses with an effective diversity strategy will have
a leading edge in employee productivity and retention. (MCARTHUR, 2004)

From Denny's experience, other businesses can learn about the advantages of diversity for the
economy. Other companies may follow some strategies, which were the responsible for the
Denny’s success and they are:
• Recognizing the economic consequences on the company's operations:

Businesses that lack an efficient plan for managing diversity may have some of the following
negative effects: loss of productivity, employee turnover, lost opportunities, and potential
employment law mistakes. Top management must acknowledge that it is a commercial issue
and that they must create a successful strategy for managing diversity in order to prevent these
consequences. (MCARTHUR, 2004)
• Interacting with employees:

Whenever management commits to the Managing Diversity for Success method,

communication among employees can occur. Depending on the number of employees and the
locations, several methods of communication will be used. By ensuring employees know about
the company's plans for diversity initiatives, the MDS process as an opportunity to enhance
productivity and growth. As well, ensure that all employees understand policies, procedures,
safety rules, and other important information. (Kilbourne, 2018)
• Distributing accountability:

The management must monitor, plan, execute, and evaluate the organization's diversity
initiatives. Develop the action plan and implementation timeline, and assign responsibilities.
(Human Capital Singapore) When selecting the individual to lead this process, be sure that the
person is a respected employee who consistently demonstrates a commitment to the principles
of inclusion, and that the person is a decision maker with the authority to lead and implement
suggestion.
• Financial resource distribution:

The process for Managing Diversity for Success must be implemented at a cost. By allocating
a diversity budget, management makes it very clear to all parties involved including staff
members, vendors, and clients that management is serious about bringing about changes to
enhance productivity and opportunities for growth.

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 • Forming a diversity task force:

A task force or council on diversity is required for the organization. A task force typically has
a set duration and set purpose, and it concludes with a report of the findings prepared for
management. The diversity council is a crucial corporate collaborator in the creation,
execution, supervision, and evaluation of the action plan. Creating a diversity council provides
an opportunity to engage directly with staff members, who frequently serve as the
organization's "diversity champions". Members of the committee should be chosen carefully,
and the group's objectives should be established.
• Building accountability:

The first step in establishing responsibility for the organization's diversity efforts is for the CEO
to make clear what goals and achievements are expected from the diversity plan. All employees
must work toward attaining diversity business success, but long-term sustainability is only
possible if management is held responsible for integrating diversity throughout all business
activities and is evaluated on their capacity.
• Delivering the action plan:

The diversity action plan's elements will change depending on the company's strategic goals,
size, available time for committee work, and human and financial resources. Giving employees
a clear message that MDS is a continuous process and not a one-time activity which is one of
the essential elements for success during the Managing Diversity for Success process. The goal
is to bring about real organizational change to benefit the business, employees, suppliers, and
customers.
• Performing the initial diversity evaluation:

By include every employee in the diversity assessment, the company gains knowledge about
its many employee groups, positions, age, gender, years of service, races, sexual orientations,
etc. The diversity assessment results provide a baseline of information to measure future
progress. Understanding the effects of diversity management on corporate performance is
important for monitoring progress and demonstrating how it may improve productivity. (Tatli,
2006)
• Providing employee training and development:

Achieving diversity is the responsibility of all employees. It is important to give employees the
chance to participate in diversity training so they may improve their knowledge of diversity

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and acquire the skills needed to meet the company's diversity goals. Effective diversity skills-
based training helps individuals develop the abilities they need to succeed at work, including
communication, negotiation, problem-solving, and conflict resolution abilities. (Pasquini,
2012)
• Analysing the diversification strategy:

To restate, Managing Diversity for Success is an ongoing process, not a program. The goal for
MDS is to establish diversity as an organizational and business value. To achieve MDS, it is
important that management evaluates each element of the diversity strategy to determine
successes, setbacks, and new opportunities in order to revise the diversity strategy. The purpose
of your communication strategy at this point is to talk about business. The goal is to be
recognized by employees, suppliers, customers, and the public as an inclusive organization that
places a high value on diversity that is reflected in the business products and services.
(MCARTHUR, 2004)

Objective 4: Identifying the effect that diversity might have on a company's

performance
Denny and its parent company advantica bring some cultural changes in their company. They
conduct an intensive diversity training program where everyone participates from top line to
bottom line employee of the company. Researchers have suggested that diversity has enhanced
performance by broadening the group’s perspectives. There is a strong empirical confirmation
that successful diversity management and a resulting improvement in organizational
performance are positively correlated (Ozbilgin and Tatli, 2008). Even though diversity offers
many benefits to both companies and employees, companies can face some challenges also.

Benefits of workplace diversity:

Diversity helps in the expansion of an organization’s perspective, approach, strategic tactics,
launch of a new product, development of a marketing plan, creation of a new idea, design of a
new operation, and assessment of emerging trends (Adler, 2002).

• Enhance creativity:

A diverse workplace increases productivity, increases creativity, and improves problem

solving. Organizations with a diverse workforce can make a greater variety of solutions to
problems in service, sourcing, and allocation of resources. Employees from diverse
backgrounds bring individual talents and experiences in suggesting ideas that are flexible in

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adapting to fluctuating markets and customer demands. Denny provided a diverse training
among all employees so that they may show their own individuality.

• Creating Dynamic Leader:

If managers are successful in embracing diversity, then organizational agility, founded upon
creativity and innovation, can ensue (Cox & Blake, 1991). Leaders who have the ability to
handle multicultural people. Therefore, it will make a dynamic leader of any organization.
Those who can adapt to any unpredictable situation and can control any cultural background
people. Previously there were white males, and rarely white females were presented as
candidates for employment. But Deny hired a firm which was owned by African Americans.
Being a dynamic leader, they can handle different cultural people.

• Decision making skill:

Restaurant managers received the most extensive training which is two nonconsecutive days
of training lasting seven to nine hours each. There were more than 100 certified diversity
trainers on staff. The training covered diversity awareness and diversity skills which helps the
manager to take any decision properly. It will be beneficial for the company.

• Benefit the business performance:

A diverse workplace also allows an organization to effectively execute its plans (Kapoor, C.
2011). A proper planning can bring success for the company. The increase in productivity
allows employees and managers to reach their goals within the organization.

On the other hand, In a diverse workplace all employees feel valued and accepted by the
company. So employees will be happier in their workplace and stay longer with the company.
As a result, the turnover rate becomes lower.

• Open Workplace for All:

Diversity of workforce means that work place is open for all. It works as a motivator for the
workforce. Previously women were rarely appointed. Women and racial minorities have been
shown to report greater per- ception of discrimination in the workplace and more positive
diversity attitudes (Bezrukova et al., 2012; Soni, 2000; Strauss & Connerley, 2003). There was
not only a gender discrimination but also rasicm existed in that company. But in a diverse
workplace different types of gender, culture, age can participate and work together. A diverse
workplace also improves communication with an organization’s clients.

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Challenges of workplace diversity:
To execute a diverse workplace, sometimes organizations face some difficulties. Diversity in
the workplace can create some conflict between heterogeneous groups. When two people of
different cultural backgrounds work together there might create some conflicts. The flip side
of the argument, however, is that when the work environment fails to support diverse
employees, negative outcomes may result, such as an increase in harassment and discrimination
(Schneider, Hitlan, & Radhakrishnan, 2000), intergroup conflict (Jehn, Bezrukova, &
Thatcher, 2008), and turnover (McKay et al., 2007). There can be numerous issues that can
be identified that can undoubtedly affect the performance of a company.

• Communication:

The first challenge is communication problems in a work environment. Employers should

ensure that communication barriers are fixed at once. It can create a huge problem when
workers are left unable to communicate with each other due to differences in languages. It
will greatly affect not only the workplace environment, but also the whole business as well.
• Another type of challenge that Denny may face is when some workers show resistance
to change. Some workers sometimes are stubborn and do not adhere to new rules that
are being set up by the company. These types of workers rebel and retaliate against the
company.
• High Cost of Diversity Management:
Sometimes companies provide training on diversity. Some training programmes require a high
traveling and participation cost. Therefore, workplace diversity management could sometimes
be very costly.

• Discrimination:

The final challenge is ethnocentrism and discrimination in the workplace. Some business
establishments show favoritism among their employees. Some managers or bosses favor one
person or group of people over another. This is unhealthy for a business because fairness and
equality is what makes up a great team. Without a great team and teamwork among the workers,
no business will run long enough.

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 Conclusion
Diversity is any dimension that can be used to differentiate groups and people from one another,
in which the dimensions can be visible or invisible. The existence of workplace diversity,
within a workplace, indicates that the workplace is heterogeneous in terms of gender, race, and
ethnicity, in which employees possess distinct elements and qualities, differing from one
another (Robbins, 2003, Buckingham, 2012). Denny believed that they can achieve
organizational strength through developing diversity in the workplace. As a result, he
developed diversity among the customers, employees, suppliers, franchisees and other partners.

Denny took a very deliberate approach to change the overall face of the company. There are
some symbolic changes which create a positive impact on Denny’s workforce. Putting a new
system, incentives have been placed that form a diversity. Previously, there was no value placed
on diversity, and no incentive for managers to hire diverse candidates. So the company built a
process that evaluated ten core competencies, one of which was valuing and managing
diversity. According to their latest study, African American traffic in Denny's restaurants
increased to 61 million visitors in 2000, from 51 million in 1998. In addition, sales reached a
record $2.23 billion. They proved once again that companies can indeed benefit from paying
attention to diversity. Denny gave the right attention specially on incentive so that corporations
can find quality minority and women talent. Despite having some minority issues, companies
need to re-evaluate their methods to gain success.

One of the primary channels they used to significantly grow the company's diversity base was
the Supplier Diversity Program. As a central referral service, it provides the essential link
between diverse suppliers and corporate units. They ensured that qualified minority suppliers
have an equal opportunity to compete and participate in the procurement process. Through this
program, they were able to support minority suppliers in other key areas, such as mentoring,
community outreach, and second-tier development. On the other hand, Advantica has also
made huge strides in supplier diversity.

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 Recommendation

• The company should launch more training on diversity so that they can achieve more
customer satisfaction towards their restaurants. Especially for managers, they can
arrange new hire training programs or advanced training programs. This training can
also teach managers effective intercultural communication.
• They need to recruit more diverse employees to improve their operation so that there
would not be any racism or other social problems that can be created. Denny’s
recruiting zone should be wider and worldwide to improve diversity.
• They should also nourish an attitude of openness in the organization. They will
encourage employees to express their ideas and opinions. It is a sense of equal value to
all.
• In the overall situation, The employees of Denny’s had some understanding problems
about local law, rules, and regulations. Denny can induce the proper information about
local law, rules, and regulations throughout the organization.
• They can arrange an employee satisfaction survey to persuade employees' reaction
about the diversity in the workplace. This practice would help to understand the
visibility and realization of the employee's how they feel about the diversification.
• They need to practice human resource management. Beginning of Denny’s journey was
practicing personnel management. That is why they were doing discrimination about
minorities and black people.

Overall, diversity is good but anything excess is bad. Sometimes sudden changes can create a
negative impact in the organization. Therefore, they should stay within a certain boundary of
diversity. If they make diversity in every aspect diversity.

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