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Denny's American restaurant chain...

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Earlier in the week we reported on a story where a Memphis, Tennessee, Denny’s employee accused the restaurant of withholding a $4,000 tip left by a patron of the restaurant.

In February Shikira Edwards claimed that she received a tip in the amount of $4,561.61. After a few weeks passed without receiving the money Edwards doubled back with the location’s manager who revealed that the amount of the tip was being contested. In order for the monies to be released Edwards was told she would need to contact the individual to make sure there was no discrepancy.

Edwards, however was not able to locate the patron and the tip was voided by the restaurant after a review by a bank and the location’s manager.

A spokesperson for Denny’s sent MadameNoire the below statement in reference to what transpired, explaining that the tip was left in error.

Denny’s has conducted a thorough investigation into this matter and has discovered the tip in question was made in error. This investigation involved the franchise, its manager and staff, the guest and his bank. The investigation required coordination and communication between all parties, which resulted in a longer process than initially anticipated. It was ultimately determined that the guest, who is elderly and unfamiliar with the debit system used at this location, entered a tip amount of $4,451.61 when he intended to leave a $4 tip on his bill.

 Denny’s would like to make it clear that we would never withhold tips or wages from any of our employees. However, Denny’s also has an obligation to ensure that our guests are charged the proper amount for their meals. In this case, Denny’s was obliged to investigate and verify the guest did in fact intend to leave such a large tip. Denny’s has met with Ms. Edwards and advised her of the outcome of the investigation and we understand the disappointment our server must feel in receiving this news. We have also taken steps to ensure that staff is better equipped to handle similar situations in the future. Denny’s will always seek to provide the fairest and most reasonable resolution under any circumstances for guests and our employees.

While it wasn’t the news Edwards was hoping for, it’s safe to say that both parties have learned from what transpired and will move forward with better practices in place.

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