Dunkin’ Donuts accused of racial bias by ex-franchise owners

| 22nd August, 2012
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A customer enters a Dunkin’ Donuts store Monday, Oct. 31, 2011, in Atlanta. -AP Photo

Shares of Dunkin’ Brands Group Inc fell as much as five per cent a day after three former franchisees filed a lawsuit against the company, accusing the doughnut and coffee seller of “systematic racial discrimination” against African Americans and Asian Indian women.

Plaintiffs Amy Pretto and Reggie Pretto, who are African American, filed suit in New Jersey Superior Court Monday, claiming they were “steered” by Dunkin away from their home in the New York/New Jersey area to open stores in less economically favorable areas in Maryland, where stores ultimately failed financially.

The other plaintiff, an Indian-American named Priti Shetty, faced harassment by Dunkin’s operations managers because of her gender and was prevented from opening a third store in Stockholm, New Jersey, the complaint said.

The suit seeks an unspecified amount of monetary damages, and asks a judge to stop Dunkin’ Donuts from discriminating against African Americans and other minority franchise owners and to put in place incentives for minority franchisees.

“While we cannot comment on pending litigation, our franchisee diversity and our franchisee relationships are a source of pride for us and a strength within our system,” Dunkin’ spokesperson Michelle King wrote in an email to Reuters.

Shares of the Canton, Massachusetts-based company, which also owns the Baskin-Robbins ice cream brand, ended regular trading down 2.6 percent at $29.54, after falling as low as $28.71.

COMMENTS

  1. Most of the Dunkin stores that I have visited-that means many- are owned by Indians and some of their management team is also Indian so I am surprised that an Indian filing suit for discrimination. Well some like to collect easy money. Large companies like to settle rather than fight the case in the court.

  2. I love how in West it is very easy for us to claim RACISM even if we fail a driving test!

  3. Dunkin Donuts does not discriminate based on color. They sell brown, black, yellow and white donuts, to cater to all color's, tastes and sizes. However, since all donuts are round, they don't cater to all shapes, so that can be construed as discrimination. In addition, since they taste like cardboard they also discriminate against people with functional taste buds, so the franchise owners should however be the ones to be sued for not having enough brains to realize that.