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?"

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