TITLE: Quotient of a category by a group action
QUESTION [7 upvotes]: Let a group $G$ act on a small category $C$. If $G$ acts freely on objects, there is a sensible construction of the quotient $C/G$ (this is briefly spelt out here)
What about the non-free case?

REPLY [3 votes]: Here is a particular special case that seems to be useful to me:
Let $F: D \to G$-Sets be a diagram of $G$-sets, indexed by some small category D.  Then ignoring the G-actions, one can form the Grothendieck wreath product $D\wr F$.  Objects are pairs (d, x) with $x\in F(d)$, and morphisms $(d,x)\to (d', x')$ are arrows $a:d\to d'$ such that $F(a)(x) = x'$.  This category inherits an action of G from the actions on the sets in the diagram; $g\cdot (d,x) = (d, gx)$ (on morphisms, $g$ looks like the identity: $g\cdot (a:(d,x)\to(d',x')) = a:(d,gx)\to(d',gx')$, which makes since $F(a)$ is $G$-equivariant.  
There is another diagram $F/G : D\to$ Sets, which takes $d\in D$ to $F(D)/G$, and there's a natural functor $D\wr F \to D\wr (F/G)$.  I claim that this functor satisfies the universal property of the colimit, i.e. $(D\wr F)/G = D\wr (F/G)$.  
This special case has the interesting property that the nerve of $D\wr (F/G)$ is precisely $N_\cdot (D\wr F)/G$.  I don't think that will hold for arbitrary group actions on categories.