CEO Luther has launched an ambitious growth plan. Can he take on Starbucks?
Allied Domecq PLC CEO Philip Bowman recruited Jon L. Luther to revive Dunkin' Donuts two years ago after complaining that the venerable chain had become a sleeping giant. Krispy Kreme Doughnuts Inc (KKD )., with a cult-like following for its sugary doughnuts, was running circles around it. In coffee, Dunkin' hadn't even bothered to offer the lattes that gave Starbucks Corp. (SBUX ) its buzz. And while it was a powerhouse in the Northeast and mid-Atlantic, much of the U.S. was ignored. "What about the rest of America?" Bowman remembers wondering. "Is there some reason that these folks in this white space [on the map] don't drink coffee or eat doughnuts?"