After seeing their first fellow chef sent home, the competition among the remaining 9 chefs escalates. In this episode, the Chairman's charge is INNOVATION and for the Secret Ingredient Challenge, the chefs arrive at a coffee shop where they learn the secret ingredient is COFFEE AND DONUTS. The chefs must create two dishes featuring coffee and donuts in 30 mins. The cooking is fast and furious as the chefs struggle to innovate these American breakfast favorites. The Chairman's Challenge, builds upon the coffee shop theme by demanding that the chefs INNOVATE classic diner foods like meatloaf, hamburgers and corned beef hash to Iron Chef level in 60 minutes.