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Jack McAleer's dad was an Alabama franchisee for Krispy Kreme Doughnut Corp., a Southeastern institution whose stores combined retail shops with factories making packaged doughnuts for grocers.

Then, in 1976, Beatrice Foods bought the chain, modernized stores, changed the dough and added soups and sandwiches. The changes flopped, and in 1982, the elder Mr. McAleer led a group of franchisees who bought the chain.

After working as a store and dough factory manager, the younger Mr. McAleer, now 40, moved into marketing.

Rising to exec VP-brand development, he worked to restore Krispy Kreme's original logo and '50s-style store design, deployed miniaturized equipment that lets patrons see doughnuts made, and added neon "hot" lights to tell passersby when fresh doughnuts were cooking.

Krispy Kreme has moved into such major markets as New York, Chicago and Los Angeles, and sales are up from $117 million in 1989 to a projected $200 million this year.

Krispy Kreme relies on publicity and promotion, including selling discounted doughnuts to local charities for fundraising and delivering free doughnuts to

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