Quote from Ghost of Cutten:
Of course private businesses should be allowed to be racist. A private business is a private entity not a public one, it is up to the owners to do what they want as long as they don't infringe someone's rights, just like it is up to a homeowner who to let in their home, or a person to choose their friends. No one has an intrinsic right to be served by a private business.
Most countries around the world allow race discrimination amongst businesses - Russia, Japan, Dubai etc all have clubs that cater to specific ethnicities for example. I don't feel discriminated against because I can't go into Mecca or a Phillipino nightclub in Dubai or a Japanese-only brothel. If a neo-nazi or a black panther doesn't want me in his home or private members club, how on earth do I have any moral right to force entry?
Anyone saying otherwise is saying that people have no right of ownership over their own property, and that it is legitimate to assault people with armed violence in order to force them to become slaves to complete strangers. Violently enforced slavery is far worse than non-violent racism.
If individuals are not legally entitled to sell to who they want, then it is a small step until individuals are not legally entitled to be friends with or have sex with who they want. Someone who wants to outlaw business race-discrimination to customers has a very hard time explaining why they would not also outlaw only marrying or having sex with or being friends with people of your own race, or avoiding those things with one or more races.