OMG, I remember Sambos.
But Denny's and Sambos was NOT the same company.
Denny's was founded under the name Danny's Donuts in 1953 by Richard Jezak and Harold Butler in Lakewood, California. They expanded to 20 restaurants by 1959, when he renamed the chain to Denny's to avoid confusion with another chain "Doughnut Dan's".
The word "Sambo" itself was USED in a derogatory manner meant to humiliate people.
Sambo's was formerly a restaurant chain, started in 1957 by Sam Battistone and Newell Bohnett.
Though the name was taken from portions of the names of its founders, the chain soon found itself associated with The Story of Little Black Sambo.
In the late-1970s, controversy over the chain's name drew protests and lawsuits in communities that viewed the term Sambo as pejorative towards African-Americans, particularly in the Northeastern states.
By November 1981, the company filed for bankruptcy.
Many of the closed Sambo's buildings are still standing, and they are being used as restaurants. Denny's acquired some of them, as their operation is nearly identical to Sambo's. An original Sambo's building is distinguished from a Denny's building in that a Sambo's is square-shaped with a mansard roof-line, while a Denny's building has a peaked-roof.