I agree somewhat.

But that decision should not have been in the hands of the branch manager, and if corporate Denny's does not have a policy regarding this, then it is a reflection on Denny's as a whole. That manager is the representative face for Denny's corporate whether he wants to be or not. It is up to corporate to either back him up or to discipline him.

The buck for this sort of thing stops at the top. Kudos to the police for putting a moratorium on dining at Denny's until a corporate policy is enacted.