Denny’s Reaches Accord Over Denver Racial Dispute : Restaurants: Chain will drop charges against four blacks arrested after confrontation over service.

The president of Denny’s Inc. has agreed to ask Denver police to drop all charges against four black women who were arrested last week during a confrontation at one of its restaurants.

President C. Ronald Purdy and representatives from Denver’s black community negotiated the agreement Monday after meeting with a federal mediator.

The national restaurant chain also said it will give special consideration to black candidates for ownership of local franchises.

The four women face a Denver County Court hearing Friday on disturbance charges. They were arrested, along with a white male, March 26 after an altercation broke out in a Denny’s in southeast Denver.

The four women said they waited for a table while several white customers were seated before them, then were subjected to racial slurs after they were seated.

After the incident, more than 150 blacks demonstrated in front of the restaurant. The restaurant was closed prior to Thursday’s demonstration and reopened Saturday after Purdy agreed to meet with the city’s black leaders.

Denny’s, which operates 1,500 restaurants in nine countries, paid $46 million last year to settle a class-action lawsuit alleging racial discrimination. In December, a dozen blacks in Chicago filed suit saying a waitress threw menus at them and served white customers first.

Denny’s is owned by Spartanburg, S.C.-based Flagstar Cos.