What I get tired of is when everyone is punished because of the actions of one individual or in some cases the mere imagination of the possibility that someone could do something. It is basically thought crime. Just because someone could enter a restaurant wired with explosives under a long coat doesn't mean that all restaurants should start banning long coats. Unfortunately, this is essentially the "logic" that many people use. Because one person is "uncomfortable" by a gender variant person in a restroom or the mere fact that someone at some imaginary future date could become uncomfortable, let's make a policy and an issue about it.
Denny's obviously has some issues. They have been sued many times before over discrimination-type issues. You'd think they would learn or train their staff better. Isn't it more sensible to simply run the restaurant normally vs. spend all of that money defending lawsuits that they know they are going to lose? As I've stated elsewhere, how does Denny's know who is trans or not or what surgeries someone may or may not have had? The only thing they can do is make assumptions.
I'd really like it if one of their managers asked a masculine-looking genetic female if she has had her MTF surgery yet. Talk about another lawsuit let alone a national news story. This restaurant chain in general isn't very professional either. Every Denny's I've been to is pretty trashy relative to comparable eating spots. The staff will smoke cigarettes right up in front where the customers come in, they literally slam the plates and silverware down on the table, and one server will yell across the restaurant to another one to get their attention. You simply don't find that at IHOP, Coco's, Applebee's, and a bunch of other restaurants.