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Denny’s Gets New COO

July 28, 1993

SPARTANBURG, S.C. (AP) _ Flagstar Cos. Inc. on Wednesday named a new chief operating officer at its Denny’s restaurant division, one day after naming a civil rights monitor to settle customer discrimination charges.

C. Ronald Petty, president and chief executive of Miami Subs Corp., replaces E. Bernard Scott, who retired as Denny’s COO at the end of 1992.

On Tuesday, Flagstar hired Joseph D. Russell, a business consultant, to monitor civil-rights violations at Denny’s restaurants and run a program to train the chain’s workers to avoid discrimination.

Russell will administer an agreement, known as a consent decree, between the U.S. Justice Department and Denny’s that includes random testing of the chain’s California restaurants for bias.

In March, the Justice Department claimed Denny’s restaurants in California forced black customers to pay for their meals in advance and denied service to some. Later lawsuits alleged bias against blacks at other Denny’s restaurants.

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