Starbucked.com - Consumer Activism is for Everyone

At home one day, away from the espresso grinder and customer chatter at his Country Club Plaza coffee shops, Jeff Schmidt received the kind of telephone call that's been the bane of small coffee retailers across the country.

Someone from Starbucks Coffee, whose corporate strategy is to become "the most recognized and respected brand of coffee in the world," was on the other line. Starbucks, the voice said, intended to enter the Plaza market and wanted to buy Schmidt's two shops, Latte-Land Espresso.

Schmidt wasn't about to give up his start-ups now that they were prospering. So he declined the overture. A few months later, this past September, Starbucks opened its first coffee house on the Plaza - just one block from LatteLand. "It seemed like they were the big corporate giant out to squash the little guy," Schmidt said.

Indeed, similar Starbucks openings from coast to coast have sometimes signaled the death knell for the mom-and-pop shop.

To Starbucks, this happens only by accident. The company says it has no strategy for locating near established competitors. Yet, there's enough of a pattern that Ted Lingle of the Specialty Coffee Association of America attests, "Their reputation is well-earned."

In cities as diverse as Milwaikee, New Orleans and Portland, Ore., a beloved gourmet coffee house disappeared soon after a Starbucks moved in close by.

Not in Kansas City, though. At least not yet.

At Schmidt's LatteLand, business is down slightly. At the Westport Coffee House, business leveled off after Starbucks moved in two blocks away, on the corner of Boardway and Westport Road. At Broadway Cage, business is up right next door to that Starbucks.

Coffee trends don't hold much hope for them. The industry association expects the number of cafes to decline by one-fifth by 2003, the result of too many retailers vying for a stagnant number of coffee drinkers.

What is saving Westport's and the Plaza's hometown cafes isn't necessarily the coffee. It has more to do with Kansas City itself, its willingness to support the hometown shop.

"This market has a loyalty or a root-for-the-hometown-guy type of mentality," said Becky Blades, a small-business owner who is chairwoman of the Commerce's Metrpolitan Entrepreneurs Council. "We're kind of conscious in that way-local yokels."

Consider Vicki Rivera and Patti Porter. These two friends wanted to meet for coffee one morning last week. Rivera suggested "that place in Westport on the corner."

"No, " Porter answered, "I won't go to Starbucks."

They ended up at LatteLand instead. Its ice cream, parlor-sized nook on 47th street is less than half the size of Starbucks' new shop nearby and , at least while the two women sipped their lattes, had half the customers. None of that mattered to them.

"I'd rather support the local coffee shops," Porter said. "I guess because I'm a Kansas City girl."

Call it the Starbucks backlash, an outgrowth of an increasingly corporatized retail landscape.

Businesses out

A coffee shop is more than just coffee. It fills a social need by providing a place for people to meet and relax-much as bars do, only without the booze. And during gourmet coffee's explosive boom during the past decade, Starbucks was the undisputed leader.

In that time, the company swelled from about 100 locations on this continent to 2,300, including seven here. One of every three coffee cafes in the country is now a Starbucks.

Besides coffee, Starbucks also is recognized for something unusual in corporate America: caring.

Fortune magazine included Strabucks amont "The 100 Best Companies to Work For," based on its health insurance and stock options for part-time workers. And Starbucks became North America's leading corporate supporter of CARE, the worldwide relief agency. Locally, company donations have gone to the KC Reads literacy program and Newhouse for Battered Women, among others.

Yet, all that means nothing to those who accuse the coffee colossus of trying to drive hometown shops out of business.

When Starbucks entered the Milwaukee market, it opened a suburban shop just a few blocks from a Stone Creek Coffee outlet. When Starbucks entered the New Orleans market, it opened on the same block as the local Uptown. When Starbucks expanded into the Portland suburb of Lake Oswego, it located in the same mall as the locally owned Coffee Nook.

And when Starbucks eyed Saratoga Springs, N.Y., it offered to buy Madeline's Espresso Bar. After the two sides couldn't agree on a price, Starbucks opened across the street.

On each of these coffee battle grounds, the independent cafe closed or moved.

In the minds of Starbucks executives, those shops hardly existed to begin with. The company says it selects sites in ZIP codes with high mail-order demand for its products.

"It's purely incidental that other shops may be there," said Kerry Thorpe, Starbucks' marketing director for the middle of the country. "That doesn''t enter into the equation."

Still, Starbucks locates so close to competitors so often that Californian Jeremy Dorosin, who started a web site - www.starbucked.com - to chronicle Starbucks' behavior, contends, "That's the biggest complaint I get."

Starbucks notoriety has even gone Hollywood, with its round green logo appearing in Dr. Evil's headquarters in the Austin Powers movie sequel - though the company laughs along with the joke, too.

Of course, the majority of Starbucks stores are not located next to a competitor. But its highest-profile urban locales in Kansas City are. That's how the Starbucks backlash spread here.

Local loyalty

It's one morning in Westport, and the streets of bars and restaurants are deserted, except for the corner of Broadway and Westport Road, in front is the warring coffee houses. There, it's rush hour.

Near 9 a.m. inside the Broadway Cafe, the line at the counter is five deep. That very minute next door at Starbucks, the line at the counter consists of one person, Jerry Fuller. He's on the run between business meetings and stopped at Starbucks because of the brand name. "I consider Broadway Cafe to be the local hangout, and this is the quick, run in and run out kind of place," said Fuller, a 52-year-old investment representative for Edward Jones.

Still, its hard to tell the two stores apart. Both arrange tables with wood chairs in L-shape spaces. Both have exposed brick and coffee-oriented art on the walls.

"The only thing a small business can do is make their product different," said Sara Honan, Broadway Cafe's co-owner. So her place is roasting its own coffee. Westport Coffee House, meanwhile, offers live music and computers.

"It's not us against them," said Cara McLaughlan, a Starbucks spokeswoman. "We represent one choice in the community, and we feel it's a great choice, but not everyone will agree with us on that."

Now it's a half-hour later that same morning. At Starbucks, seven patrons sit around tables or in plush chairs sipping espressos and lattes. At Broadway Cafe, 11 patrons are doing the same thing. One of them is Jeff Conrick.

"I like supporting a local business," says Conrick, a 28-year-old student and hospital therapist. "I didn't like the idea that Starbucks moved in next to my favorite coffee shop, so I've avoided them in Kansas City."

This allegiance reflects a sort of entreprenurial ethos in Kansas City. The area has ranked as high as number 7 on Entrepreneur magazine's best cities for small businesses, based on the success of start-ups as well as the dozens of entrepreneurial support agencies.

"We as a community support the local people," sayid Danny O'Niell, a local coffee entrepreneur with the Roasterie Inc.

LatteLand's Schmidt, who once lived on the East Coast, agreed.

"There's a loyalty I didn't see in Washington, D.C.," he said.

That judgement is hard to prove. This area abounds in examples like Winstead's, Boulevard beer or Hollywood At Home surviving against national chains. But in some cases, for every Rainy Day Books in Fairway, there's The Bookshop that recently announced it's closing in Brookside. Local small-business observers know of no studies about Kansas City's propensity for customer loyalty.

But they vow it's there. "It's difficult to say this without sounding like a bumpkin," said Rhonda Holman, vice president of community entrepreneurship for the Kaufmann Foundation, :but it seems to me that relationships drive the transactions in this community more than others. "I think there is a bit stronger tradition in this market for supporting local ownership."

To reach Jeff Spivak, urban and metropolitan affairs reporter for The Star, call (816) 234-4416 or email Jeff.

PINOLE RESIDENT HAS MADE STARBUCKS-BASHING HIS LIFE'S WORK

wants "starbucked" to become a verb that describes how corporate giants mistreat hapless, complacent consumers.

Dorosin is not the only anti-Starbucks crusader. The Petaluma-based Deaf Dog Coffee chain has produced "Friends don't let friends go to Starbucks" bumper stickers. And Circadia, one of a limited number of stylish coffeehouses operated by Starbucks, was one of the establishments targeted by the Mission Yuppie Eradication Project, a crusade against upscale bars, restaurants and vehicles in the Mission District.

Why has Starbucks become the symbol of all that is wrong with large companies in this country?

EVERYBODY'S BUSINESS: MICHAEL LIEDTKE

Dow 11,000 ought to be here in year

NOW THAT THE FUSS over the Dow Jones industrial average breaking 10,000 is behind us, it seems worthwhile to ponder whether it'll be a big deal if and when the stock market's most hallowed benchmark surpasses 11,000.

It'll only be noteworthy if it takes longer than a year for the Dow Jones to reach 11,000. If the index of 30 blue-chip stocks doesn't top 11,000 by April 2000, then the media might want to start asking what's taking so long.

Here's why: Historically, the stock market's average gain is just a shade under 11 percent. This is an average, of course, so the market fares worse some years and performs much better in others years -- like just about every one during the 1990s.

But here's the point: based on historical measures, an 11 percent increase in the stock market is rather routine. By this reckoning, the Dow Jones' trip from 10,000 to 11,000 -- a 10 percent gain -- should take less than a year.

Let's face it. The Dow has reached a level where every 1,000-point gain becomes increasingly less impressive.

At one time in the stock market, people used to get excited each time the Dow Jones crossed a 100-point barrier for the first time. The exuberance over the 100-point moves of yore was understandable, given that the barometer didn't close above 1,000 for the first time until the mid-1960s and traded below 1,000 as recently as October 1982.

Now, of course, the Dow Jones swings by 100 points in a matter of a few hours and the fluctuation barely elicits a yawn.

It may not be much longer before 1,000-point gains seem ho-hum.

DON'T FORGET INFLATION: The incredible bull market of the past 16 years, of course, is the chief reason that the Dow's 1,000-point gains are becoming more mundane events. And the advance is certainly impressive. As of its April 7 close of 10,085, the Dow had increased by 1,200 percent from its August 1982 low of 777.

The nominal figure is a bit misleading though. Adjusted for inflation, the Dow's August 1982 low translates into a figure of about 1,360. That puts the Dow's inflation-adjusted gain at about 650 percent.

It's a significant difference and represents just one more reason why the capital gains tax is so unfair. At the very least, it seems lawmakers should index for inflation so investors aren't paying taxes on illusory gains.

FUEL FOR THE FIRE: Is anyone surprised that gas prices soared much higher and quicker in the Bay Area than in Southern California?

Probably not, but it still seems like an issue worth examining because for many years the oil industry has steadfastly maintained that Bay Area drivers can't expect cheaper prices, even though the region has more refineries than Southern California.

If it's true -- as oil industry officials always have insisted -- that the location of refineries have relatively little influence on gas prices, why then did the problems at the East Bay plants of Tosco, Chevron and Exxon have such a dramatic impact at Bay Area pumps?

The oil industry feeds us a lot of mumbo-jumbo about the Southern California market being much more competitive than the Bay Area market. For the sake of argument, we'll buy that rationale and concede that Southern California gasoline will always be cheaper than Bay Area gasoline.

But if both parts of California must rely on the same unique, cleaner-burning gasoline mandated by state regulators, shouldn't the price differential between the two regions stay roughly the same?

It certainly hasn't worked out that way since worries about a possible gas shortage spurred panic buying and fueled substantial price increases.

Consider the findings of a March 30 survey by the regional affiliates of the American Automobile Association. The study pegged the average price for regular unleaded gas in Oakland at $1.54 per gallon, a 26 percent increase from March 11. The average price at Los Angeles stations as of March 30 was $1.31 per gallon, a 12 percent increase from March 11.

To put it in more stark terms, consider this statistic from the AAA's February gasoline survey, taken right around the time that a fatal accident at Tosco's Avon refinery began a series of events that provoked concerns about a gasoline shortage. In the February survey, the average gas price in Los Angeles was just 2 cents per gallon lower than the average Oakland price. One month later, that gap was 23 cents per gallon.

As of April 7, you may be interested to know that Tosco's stock has climbed by 18 percent since the company announced the temporary closure of the Avon refinery.

Draw your own conclusions about what's really happening here.

HE'S NOT GOING AWAY: Pinole resident Jeremy Dorosin continues to torment the trendy coffee chain, Starbucks, for a perceived slap in the face four years ago. By now, Dorosin may be familiar to many of you. He is the proverbial "customer from hell" who has been railing against Starbucks because he contends the chain sold him a defective espresso machine and then compounded the insult by refusing to make amends.

Starbucks maintains that it went out of its way to placate Dorosin within reason. Dorosin says that before Starbucks became conciliatory, the company's employees treated him rudely, convincing him that the chain needed a harsh reminder that the "customer is always right."

After a media blitz several years ago, Dorosin revived his campaign this year with a new book, "Balance at Middlefork," that touches upon the controversy. He also spent $20,000 on Wall Street Journal advertisements asking disgruntled Starbucks customers to share their thoughts at his new Web site, www.starbucked.com.

Encouraged by more than 30,000 hits on his Web site, Dorosin plans another $5,000 printing and distributing poster-sized replicas of his Journal ads. He already has hung many of the posters in Berkeley coffee houses and promises to mail them all over the country.

"My goal now is a slow-burn approach," said Dorosin, whose Starbucks siege recently was recounted in Smart Money magazine. He says he won't stop until Starbucks publicly apologizes to him and makes some good-faith gesture, such as establishing a community center for runaway teens.

Starbucks probably wishes that Dorosin would start drinking decaffeinated coffee.

Oakland Tribune, Monday, April 5, 1999

Activist Dorosin blends philosophy, anti-Starbucks campaign into new book on consumer rights

You’d think he would have given up by now.

It was 1995 when Jeremy Dorosin of Pinole ended up with two faulty espresso machines from Starbucks, topped off by what he claims was really lousy customer service in dealing with the problem. Most people would have kicked up a fuss for a little while then let it all die a natural death.

Not Dorosin. Since then, the former scuba shop owner-gone-consumer activist and social philosopher has used his own money to purchase full-page anti-Starbucks ads in publications such as the Wall Street Journal. He’s been all over every newspaper and done countless radio and TV interviews about the incident.

The more time that passes without what he considers an adequate apology from the executives at Starbucks Coffee, the more it breathes life into Dorosin’s mission, his public campaign against—not only Starbucks—but corporate conglomerates and bad customer service everywhere.

Now he’s published a book that somehow blends the Starbucks case with his concepts of Eastern philosophy and Western culture and discusses his frustrations as a gay man.

He has started an anti-Starbucks Web site and is thinking of taking on executives at the Colorado-based Tele-Communications Inc. (the huge cable company better-known as TCI) on customer service issues.

Dorosin smiles. It’s a smile that should have Starbucks executives crying in their coffee. But Dorosin isn’t even sure he’s still "on their radar," he says.

"But I’m never giving up," he says, sipping coffee—not Starbucks—at a Berkeley coffee house last week.

Dorosin once liked Starbucks and was a loyal customer of the company until he purchased a $299 espresso machine for himself at a Berkeley Starbucks and a $169 machine as a wedding present for a friend. Both machines malfunctioned, he says. The one he gave as a gift was rusted inside and even had missing parts, he says, and he accused Starbucks of selling him a used product.

He immediately complained to the local Starbucks manager, then the regional manager, then went all the way to the Seattle corporate headquarters, demanding that a letter of apology and a brand new top-of-the-line espresso machine be sent to his friend.

Starbucks officials told reporters at the time that they had offered Dorosin an upgraded machine, but he rejected it because they would not admit in a letter of apology that they’d sold used goods.

The conflict snowballed, and within weeks Dorosin had bought the first Wall Street Journal ads. He wanted Starbucks to purchase their own full-page ad with a general apology to all their customers. That didn’t happen.

No one at Starbucks corporate offices in Seattle responded to reporters calls for this story.

Today, in describing his quest, Dorosin says, "It’s transcended the original Starbucks issue."

Indeed, business schools are even studying this case of consumer activism as an example of customers who are becoming more vocal against impersonal treatment from big business.

Dorosin, 41, just returned from speaking at Miami University in Ohio and has received several invitations to lecture at colleges around the country.

He loves to talk about the subject. He has to; it’s his life now.

"In this culture, the act of complaint is looked upon merely as a whining process," he says. "A lot of people don’t understand how important it is. Without complaint, you can’t have the recognition of a problem. Without the recognition of a problem, you can’t come to a solution," he says.

Dorosin says the more hands-off we’ve been with corporate growth, the more the needs of the individual have been crushed. And, he says, that if this process continues unchecked it could be our "modern-day Fall of Rome."

"We are not certain of our end. There have long been nuclear fears. But the end could very well be an economic collapse," he says. "These are very real fears to have at this period, going into the new millennium, with more and more mergers every day.

"Somebody’s got to do something," he says. "Do I consider myself a consumer hero? No. Do I hang out with Ralph Nader? No.

"But it does always take one person leading the way for any kind of revolution. It took a Jesus. It took an Einstein. Not that I’m putting myself on that kind of level at all. But it illustrates how one person can make a difference."

Ralph Nader or just a loon taking advantage of his 15-minutes-and-counting of fame, he certainly is a persistent bulldog of a man, and he’s no dummy either. He’s articulate and calm in his presentation.

He gave up his Walnut Creek scuba shop to devote more time to the cause, using his savings to continue to purchase ads. He just printed about 1,500 placards that read, "Had any problems at Starbucks Coffee? You’re not alone." The signs give his toll-free number and the Web site address.

He says the Web site, www.starbucked.com, which has been visited more than 30,000 times since he set it up in early March, is collecting horror stories from fellow disgruntled customers and former Starbucks employees. He has received supportive comments, plus the occasional "Let it go, man."

Dorosin’s book, "Balance at Middlefork: An Adventure in Human Freedom," (Celestial Arts, $14.95), is currently in numerous bookstores. It’s even at Barnes & Noble, which Dorosin finds humorous because they serve Starbucks coffee in their cafes.

He says it took him 20 years to write this book. It is a rather stream-of-consciousness tale of a few days spent along the Tuolomne River in Yosemite, in which he discusses his quest for the meaning of life, and the possibility of combining Eastern and Western cultures. He says the book is an offering, a suggestion about one road to enlightenment.

Dorosin grew up in a Jewish home but he got his first taste of Eastern thought as a teen-ager when he happened to read Robert Pirsig’s "Zen and the Art of Motorcycle Maintenance." He got a bachelor’s degree in English literature and studied transcendental meditation in Berkeley. He tried to do a master’s thesis on Pirsig’s book, but it was rejected. He also adopted a son, an American Indian boy who is now 26.

Today, four years after his first complaint, what would it take to satisfy Dorosin’s strife with Starbucks?

"It would take an immense gesture," Dorosin says. "Something that would help the community. If they would start up a shelter for runaways in San Francisco, for instance, they could put kids to work, train them in their stores, get them off the streets.

"I could serve in some consultant capacity on that," he says. "I don’t think it’s fair for me to have been part of what they consider the problem, without my offering to be part of the solution. I would be happy to do that."

Published on February 14, 1999

EVERYBODY'S BUSINESS: MICHAEL LIEDTKE

Starbucks adversary crusades on relentlessly

JEREMY L. DOROSIN'S new book, "Balance at Middlefork: An Adventure in Human Freedom," recounts his own spiritual odyssey during an extended holiday a few summers ago in the wilderness of Yosemite. Starbucks Corp. probably wishes Dorosin had gotten lost in those woods.

But Dorosin found his way back to his Pinole home and now Seattle-based Starbucks once again will find itself trying to wade through a torrent of negative publicity that this first-time author promises to unleash as he promotes the new book, scheduled to go on sale Monday.

(Before going further, a disclosure: I am briefly mentioned in Dorosin's book as part of a phone conversation that we once had in 1995 after I wrote a story about his Starbucks struggle.)

Why should Starbucks -- a once-quaint coffee chain that has percolated into a powerhouse with annual sales of $1.3 billion -- worry about a little-known writer like Dorosin?

Dorosin is a headstrong man with some media savvy and a populist cause, that's why.

Look what happened in 1995 after Dorosin concluded that he had been disrespected by an unrepentant Starbucks. Back then, Dorosin stirred up a hornet's nest by placing ads in The Wall Street Journal seeking feedback from other consumers who had had bad experiences at either Starbucks or other major businesses.

After hundreds of consumers responded to the ads and this paper published a front-page story detailing Dorosin's unusual crusade, his tactics attracted more and more attention, much to Starbucks' chagrin. Dorosin's crusade eventually became a case study in business schools and provided the impetus that he needed to finish a book that he had been working on for 20 years.

The avalanche of publicity that trailed Dorosin's Starbucks bashing no doubt helped him convince Berkeley's Ten Speed Press/Celestial Arts to publish the book. He submitted the book to 90 publishers before finally drawing interest from Ten Speed.

While Dorosin addresses the Starbucks controversy in his philosophical book, it's not the focal point of his search for a "quality" existence. The book's release, though, is behind Dorosin's decision to renew his attempts to pressure Starbucks to make some kind of mea culpa for selling him some espresso machines that he said were defective.

Dorosin has already paid $1,700 to place an ad in the western edition of The Wall Street Journal on March 3 seeking more feedback from alienated Starbucks customers. He plans to spend up to $20,000 on an anti-Starbucks advertising blitz during March. It's a substantial financial commitment for a man who has been concentrating on finishing this book since the 1995 closure of a Walnut Creek scuba shop that he ran for six years.

Setting up Web site

Besides the advertising campaign, Dorosin also is unveiling a new Web site, www.starbucked.com, that will detail his battle with the company and post a laundry list of customer grievances. The site is supposed to debut today.

And expect to read and hear about Dorosin's Starbucks problems in the media during the next few weeks as he promotes his book in a tour that will hit at least 20 cities. Smart Money magazine is already working on a story about the book and Dorosin's Starbucks issues. Network television news magazines also have expressed an interest in doing stories about his book and quest.

Is Dorosin beating a dead horse? He doesn't think so.

"(The Starbucks controversy) has never been resolved and they are now bigger than before," Dorosin, 40, said. "I think people are a lot more fed up with Starbucks than they were just a few years ago. I think it's a perfect climate to launch an offensive to get this company to change the way it does business."

Starbucks officials say they are finished trying to placate Dorosin.

"We feel we have explored all reasonable avenues to satisfy (Dorosin)," said Starbucks spokesman Alan Gulick. "Unfortunately, it looks like we have a customer that will never be satisfied."

Gift gone bad

Here's how this whole coffee brouhaha started in the first place: Dorosin said he bought a couple of defective espresso machines, one for himself and one as a wedding gift for a good friend. He was mortified about the wedding gift, in particular, and asked Starbucks to send the bride a letter of apology along with a much more expensive machine than he purchased.

Starbucks balked, Dorosin became indignant and suddenly the dispute became much more than the run-of-the-mill customer complaint. Starbucks eventually became more contrite, but by then Dorosin had upped the ante and wanted the company to donate money to start a center for runaway teens. Starbucks wouldn't and the bickering has been going on every since.

While Dorosin has been cheered on by other consumers who have felt shortchanged by big business, plenty of other people view him as a bit of a crybaby who should just shut up.

Anyone who reads Dorosin's new book will better understand why he is pouring so much time and energy into this crusade. In his mind, Dorosin is waging this sometimes lonely battle for the greater good.

"The Starbucks struggle isn't so much about bad coffee machines and ridiculous service as it is a reminder of what happens to society when people don't complain," Dorosin writes in the book. "First step is recognition of problem, afterwards comes its correction. The willingness to conform, but not undergo the discomfort of objection, can actually weaken society."

Stimulating, obtuse

Dorosin's book is loaded with stimulating thoughts. And it has its share of turgid passages, too, filled with his obtuse interpretations of Robert Pirsig's famous treatise, "Zen and the Art of Motorcycle Maintenance."

For instance, I'm still scratching my head over lines like this: "Abandoning patterns because they are not pure Quality, or rejecting Unpatterned-becoming because its experience cannot be caged and patterned, is a violation of balanced satisfaction." Huh?

Overall, the book is part "My Dinner with Andre" as Dorosin chats about life's mish-mash with his long-time camping buddy, Randy, and part "Siddhartha" as Dorosin sits by a river searching for inner harmony. The book is also filled with odes to the sublime joys of cigars and James Brown that tobacco aficionados and the Godfather of Soul's disciples will surely appreciate.

Although Ten Speed Press is a small publishing house, the book is being broadly distributed. Lucky supermarkets is planning to sell it in more than 100 of its stores. Several well-known Bay Area book stores, including Cody's in Berkeley, also are stocking it.

You won't find the book in your local Starbucks, though.

The Contra Costa Times, Business Section, Wed. July 29, 1998, p. C1 & C5.

The Meaning of it All, by Michael Liedtke

Pinole--When Jeremy L. Dorosin turned a perceived 1995 slight at a Starbucks Coffee store into a high-profile showdown, it became a case study in consumer indignation that will be pondered in business schools around the country for years to come.

Now Dorosin, 40, can say he wrote the book on the subject, too.

The Pinole resident rehashes his highly publicized battle with Seattle-based Starbucks in a treatise due to hit stores in October.

The book, titled "Balance at Middlefork: an Adventure in Human Freedom," is actually about much more than Dorosin's tug-of-war with Starbucks over how far a big business should go for loyal customers who believe they have been short-changed.

Dorosin's ruminations, to be published by Ten Speed Press/Celestial Arts of Berkeley, concentrate on his struggle with materialism, the philosophical contradictions of Western and Eastern cultures and his frustrations as a gay man. This quest for meaning takes place during a few days spent almost entirely along the banks of the Tuolomne River in Yosemite. Along the way, Dorosin's dissertation provides frequent paeans to the joys of cigar smoking and the great outdoors.

Dorosin, who ran a Walnut Creek scuba shop before deciding to pour all his energy into the book, also devotes a fair amount of space to the Starbucks strife. He portrays his difficulty with the coffee chain as a snapshot of the obstacles facing consumers as companies get bigger and increasingly indifferent to individual complaints.

"Is it fine for a big company to walk away from a problem, leaving a loyal customer far worse off than before they patronized and supported the company?" Dorosin muses in the book. "A small business can't afford to ignore the problem, a big one can. Or can it?"

Dorosin made sure Starbucks will never forget him by dogging the company for the way it responded to a complaint he lodged after he concluded he was mistreated at a Berkeley store.

The breaking point came in the spring of 1995 when Dorosin purchased an espresso machine as a wedding gift, only to find out that it didn't work. Livid, Dorosin demanded that Starbucks replace the machine with a more expensive model and a letter of apology to the bride.

Starbucks didn't give Dorosin what he wanted when he wanted it. One thing led to another and, by May 1995, Dorosin was running ads in the Wall Street Journal lambasting Starbucks and fielding responses from hundreds of consumers who wanted to hail or assail his efforts.

Dozens of newspapers, radio stations and TV station subsequently produced feature stories about Dorosin, holding him up as a poster boy for consumer activism.

The Times was the first newspaper to run a story about Dorosin's campaign, a distinction that the author notes in his book by mentioning a Times reporter in the scene-setting prologue.

As Dorosin's 1995 campaign escalated, so did his demands on Starbucks. The coffee chain tried to refund Dorosin's money, but he refused to cash the checks.

Apology letters to the bride who received the defective machine were returned, too.

By the time Starbucks responded, Dorosin said it was too little too late.

"Our attempts to live up to the highest levels of customer service have been rejected at every turn by Mr. Dorosin," said Starbucks spokesman Alan Gulick.

The fascination with Dorosin's story didn't wane, even after Starbucks abandoned its efforts to satisfy him in August 1995.

His Starbucks battle was spotlighted in several books, including "A Complaint Is a Gift" and "Consumer Terrorism," and became a formal case study for a marketing class at Miami University in Oxford, Ohio.

Earlier this year, Dorosin even traveled back to Ohio to lecture to Professor David W. Rosenthal's Miami University class, where he drew a mixed reaction.

"Some students seemed to think, 'What kind of crazy man takes out ads in the Wall Street Journal just because he didn't get what he wanted,?" Rosenthal said.

"Other students seem to think that (Dorosin) had a right to be really angry about how Starbucks treated him," he said. "That's what makes this a good case study. There is room to interpret on either side of the issue."

The tussle between Dorosin and Starbucks will next be recounted in the "Case Research Journal," an academic publication that is used in business schools all over the country.

While he understands the lingering Starbucks tension probably will help him promote his book in the media, Dorosin insists that he wants a truce.

He said San Rafael author Janelle M. Barlow, who co-wrote "A Complaint Is a Gift," tried to broker a deal that would have required Starbucks to sell his new book in its stores and donate a portion of the proceeds to a shelter for runaway youth.

The discussions went nowhere, leaving Dorosin with plenty of consumer angst even as he basks in his epiphany in the wilderness that inspired his new book.

"I don't understand why (Starbucks executives) just don't admit they were wrong, solve this problem and put out this fire," Dorosin said. "The reason everybody continues to pay attention to this case is because everyone sees a little of themselves in my position."

San Francisco Chronicle, Saturday, July 25, 1998, Chip Johnson's column, pp. A15 - A16.

Coffee Grinder: Jeremy Dorosin, 40, of Pinole, waged a one-man war against Seattle-based coffee giant Starbucks when he claimed he was treated shabbily after purchasing a faulty espresso machine from Berkeley's Solano Avenue store in April 1995.

After finding fault with a second machine and more trouble with a third one he gave as a gift, he sought relief with the company but says he was ignored.

Dorosin decided to publicize his plight with a pricey ad campaign in Western editions of the Wall Street Journal in consecutive weeks in May 1995. The ads, five in all, asked other dissatisfied customers to contact him with their own horror stories.

The ad campaign brought more than 1,000 calls from other dissatisfied customers and national media attention, including a piece in the New York Times.

Before it was over, and it still ain't over, he promises, Dorosin says he spent somewhere between $15,000 and $20,000 fighting the good fight.

Now Dorosin, a former Walnut Creek scuba shop owner, is using this media platform to publicize his new book, "Balance at Middle Fork: An Adventure in Human Freedom."

Dorosin described his book, scheduled for an October release, as the coming together of Eastern and Western philosophies.

Well, I don't know about all that, but I did read one telling line in the few pages he faxed over.

"The Starbucks struggle isn't so much about bad coffee machines and ridiculous service as it is a reminder of what happens to society when people don't complain," writes Dorosin.

He said he offered to halt his torrent of bad press against the company if it'd offer his book in its coffee shops.

Uhhh, surprisingly, it didn't choose to carry a book that condemned its business. How odd.

For its part, the company said it tried everything, short of meeting Dorosin's demand for a $2,500 top-of-the-line espresso maker to make him whole again. It sent a chronology that described seven phone meetings, certified letters and other correspondence intended to put the issue to rest.

Dorosin turned down all offers.

I want to offer a simple suggestion that may end three years of acrimony between the parties.

Shop at Peet's Coffee, Mr. Dorosin. It's a half-block up the street on Solano Avenue.

San Jose Mercury News

Sunday, June 18, 1995, pp. 1B-2B.

Hero or milking situation' Starbucks critic takes heat

'Here I am, one guy against a $500 million company. They're growing so fast, they've lost sight of the customer.'

It all started when Jeremy Dorosin tried to steam some milk with his new espresso machine and the device didn't work. Now he's steamed'and he won't take it any more.

In an unusual Little Guy vs. Big Company battle, Dorosin has brought the mighty Starbucks Coffee Co. of Seattle to its corporate knees by taking his complaints about rude clerks and defective espresso machines to a nationwide audience.

Using $5,000 of his savings, he bought four advertisements in regional editions of the Wall Street Journal urging readers with complaints against Starbucks to call a toll-free phone hooked to his scuba-diving shop in Walnut Creek.

The whole fracas has people weighing whether Dorosin is full of beans'or a consumer hero standing up to corporate America.

"Here I am, one guy against a $500 million company," he said. "They're growing so fast, they've lost sight of the customer. They need to be brought down to reality."

Dorosin contends a Starbucks coffeehouse in Berkeley sold him two faulty espresso makers in April, including one he sent a friend as a wedding gift, then refused to make amends for the inconvenience and embarrassment.

Over the past month, nearly 3,000 people have responded to his ad with calls or letters. Many expressed outrage at his story, a few had their own complaints against Starbucks and some supported the company.

Dorosin's aggressive tactic has drawn the attention of media everywhere, from TV networks to radio talk shows to newspapers.

The widespread airing of the dispute has Starbucks, the biggest retail coffee chain in the nation, worried about its upscale public image.

"We've tried every way we know how to satisfy this customer, and he's been unreasonable," said Starbucks customer relations manager, Barbara Reed, noting that he's turned down replacement espresso machines worth $270 each, milk pitchers, cups, saucers, condiment shakers and coffee.

Instead, Dorosin has become even more tenacious. Demanding more than just apologies and merchandise, he wants the company to show remorse by building a center for runaway youths in San Francisco'a request Starbucks called unreasonable.

No matter who is right, experts said, the tidal response to Dorosin's plight sends a message to companies everywhere that there is a growing consumer demand in the 1990s for good service.

"You can't tell the difference between the customer from hell and the customer who's been put through hell," said Ron Zemke, president of Performance Research Advocates of Minneapolis, a business consulting firm. "But whether he's a schnook or not is irrelevant. Think of how many thousands of people are reading his story. It does make an impression on customers, and Starbucks has an upscale image to maintain."

Dorosin acknowledges some people think he's gone too far. He estimates he's spent $11,000 for the ads, the toll-free phone line, faxes and postage. That's enough to buy about 50 espresso machines. But he said it's been worth it.

"I'm bringing national attention to a very important issue," Dorosin said. "These large companies can't do this to people anymore. I won't have it, especially when I've been a loyal customer of theirs for a long time."

Zemke said customers today put a premium on good service'in part because they're pressed for time.

"When you deal with Federal Express, you're even more unhappy with the service at the Post Office," he said. "When you've been to the Ritz-Carlton, it makes it harder to go to Disneyland or Disney World (hotels). When customers go into a store and want to know how that VCR works and the clerk says, 'Huh'' that makes them upset."

Dorosin's escapade began in April when he bought a $299 espresso machine and asked for the half-pound of coffee that Starbucks gives away with each machine purchase. The clerk refused to give him the coffee. Later, he found the milk steamer didn't work. He returned the machine for repairs and Starbucks loaned him another, cheaper machine. He liked the $189 loaner, so he bought one for his friend's wedding gift.

But the friend told him the machine was rusted and lacked a milk steamer. When Dorosin took it back, he said the store manager denied there was a problem with the machine. Later, Dorosin asked Starbucks to send the bride its top-of-the-line espresso machine, which cost nearly $2,500. The company refused.

Dorosin contends it was only after taking out the Wall Street Journal ads that Starbucks sent him and the bride the replacement machines and gifts.

But Reed said the company apologized immediately and offered the new machines before the ads appeared.

Joseph Belluck, attorney with Ralph Nader's Public Citizen advocacy group, said Dorosin was entitled to a refund or replacement of his merchandise. But even as a consumer advocate, he questioned whether Dorosin was asking too much in demanding the runaway youth center.

Dorosin said he wants Starbucks to show true remorse.

The company had better listen, consultant Zemke said. He advised Starbucks to make a "dramatic gesture."

"Maybe they should buy out whatever the local ballpark is and have a 'Jeremy Dorosin Night,'" he said. "Everyone would get in free if they bring a can of food for the poor, and Starbucks would donate it in Jeremy's name. That's the only way to deal with this guy. Otherwise, this won't go away."

The New York Times, Living Arts Section, Wednesday, June 14, 1995, pp. B1-B2.

In the End, the Customer Is Always Right, Right'

Jeremy Dorosin, of Walnut Creek, Calif., says all he wanted in the beginning was a decent cup of coffee. Now, he says, he just wants what he considers decency.

Contending that a Starbucks coffee store in Berkeley, Calif., sold him two defective espresso machines and then failed to make proper amends, Mr. Dorosin has, in a monthlong public campaign for reparation, spent more than $10,000 on newspaper advertisements and a toll-free telephone number, soliciting other dissatisfied customers. The four advertisements, in regional editions of the Wall Street Journal, have generated a wellspring of support and become a public relations problem for the Starbucks Coffee Company, the nation's largest chain of coffee stores.

Deliberately or not, Mr. Dorosin has tapped into every retailer's nightmare: the customer who won't go away and who insists that, right or wrong, he is right. And in an economy in which service is cited as the make-or-break factor in retailing success, his crusade is becoming a very public test of how far a company is willing to go to please a customer.

"For every business in the country, this is an important issue," said Maura Burke Weiner, the director of the Service Impact Group, a management consulting company in Fairfax, Va. " A customer's word of mouth, either pro or con, is increasingly a critical factor in retail failure or success.

Starbucks, a publicly held company that prides itself on customer relations, says it is at a loss as to what more it can do to satisfy Mr. Dorosin. He has rejected offers of compensation for himself and is now demanding that the company, which underwrites a variety of community-service projects, establish a center for runaway children.

"If we can't settle this, where are we as a nation'" asks Barbara Reed, the manager of customer relations at the company's headquarters in Seattle, which oversees the 570 coast-to-coast Starbucks stores that serve 2.5 million customers a week.

The drama, being played out not in the courts but in the media, began in late April, when Mr. Dorosin, 37, the owner of Scuba Town, a shop that sells scuba-diving equipment in Walnut Creek, bought an Italian espresso machine'a $299 Estro Vapone'at the Berkeley branch of Starbucks. He said that when the steam pump soon malfunctioned and he complained, the store offered him a loaner machine until his own was repaired. Impressed by the loaner (an Estro 410, which sells for $189), he returned to the store to buy one for a friend as a wedding present.

He was suspicious of the gift machine from the start, he said. "The box was dogeared," he added, "and the machine looked used, although the clerk assured me that packages from Europe often looked that way'they just got roughed up a little in transit."

Told by an employee that it was the last model in stock, he said, he proceeded to the checkout counter, where he asked for the free half-pound of coffee that the store normally includes in all coffee-maker purchases. The cashier refused, he said, and when he suggested he might at least get a free cup of cappuccino, he said, the cashier told him, "You get nothing."

"It was humiliating to be in the store surrounded by other customers and be treated that way," he said, adding that his embarrassment escalated when his friend later said her gift machine was rusted and a part was missing.

Starbucks acknowledges that the cashier acted inappropriately, but the company denies that the gift machine was either incomplete or rusted. "We sometimes test the machines to make sure they're working, which may be why it appeared to be used," Ms. Reed said.

During the last week of April, Mr. Dorosin said, he returned to the Berkeley Starbucks to complain and was referred to the San Francisco office, which referred him to headquarters in Seattle. He said he suggested that for all his aggravation, the company should send his friend "the nicest espresso machine you have." That machine, he was told, sells for $2,495. Ms. Reed said the request was not "what the company considers reasonable."

Starbucks refused to send the next-nicest, a $450 machine, but offered to refund Mr. Dorosin's money or to substitute two other espresso makers. Mr. Dorosin considered the offer unacceptable, and on May 5 he placed a 2 1/2-by-5-inch advertisement in the Northern California edition of The Wall Street Journal. It said: "Had any problems at Starbucks Coffee' You're not alone. Interested' Let's talk."

After he bought a slightly bigger advertisement a week later in the newspaper's western edition, which covers fourteen states, Starbucks sent two new $269 espresso machines, two pounds of coffee, a steaming pitcher, condiment shakers, cups and saucers and a $30 refund. These'along with letters of apology'were sent to Mr. Dorosin and his friend, both of whom refused the packages on delivery. "It was way too late," he said. "The truth is that Starbucks was not sympathetic, they did not take me seriously, and they did not send anything until after my second ad appeared."

Each of the four advertisements, costing a total of $4,921 and the last of which ran on May 24, included a toll-free telephone number'(800) 510-3483'which is still in operation. Mr. Dorosin asked all callers to write and to give permission for their letters to be published in future advertisements. So far, he said, he has received almost 3,000 replies, several supporting Starbucks, and at least one from a competing coffee company touting its own coffee. But the majority, he said, ranged form complaints of poor coffee and service to comments on customer relations in general. Mr. Dorosin said that he did not consider himself a contentious person and that he had never made a consumer complaint before, nor did he have any connection to any coffee company or access to any money other than his own. "I'm a lot poorer now but no more satisfied," said Mr. Dorosin, who said he spent his savings for the advertisements.

Last week, he said, he received calls from CNN's "Larry King Live" and CBS News checking the status of the dispute. Harper's Magazine has been in touch about publishing some of the letters, a possibility he said he is considering.

When he began to get response to the advertisements, he said, he asked Starbucks to take out a two-page $247,182 advertisement in the national edition of The Wall Street Journal, apologizing to him and "acknowledging that they had knowingly sold me a used machine," he said.

Ms. Reed said, "That would be a lie; we do not sell used machines." She added that it "would be a ridiculous waste of money to appease one ego."

"I think it's great that people yell and scream, but we have a responsibility to all our customers, and this one has gone too far," she said.

James L. Heskett, a professor at the Harvard Business School, said the dispute is a classic business case of a breakdown in "second-level recovery," the stage in retail relations that follows a consumer's complaint.

Mr. Heskett, a co-author, with Christopher W. I. Hart and W. Earl Sasser, of "Service Breakthroughs, Changing the Rules of the Game" (Free Press, 1990), says it is crucial that a company respond to a problem with utmost speed and in a way that shows genuine concern. "The customer must feel that the solution is uniquely tailored to him or her," he said.

At Starbucks, customer service is a part of training for all 9,000 employees. Howard Schultz, the chairman and chief executive, said in a corporate-profile statement that "Starbucks' unusual dedication to investment in its people guarantees exceptional quality for the company's customers." Ms. Reed added that Starbucks is committed to community support through programs like children's welfare groups, AIDS outreach programs and cultural events.

Mr. Dorosin, the single father of an adopted Native American son who is now 22, said he was equally interested in community programs. He no longer wants a newspaper apology, but would like Starbucks to respond with "some concrete action so something good could come out of this." He has asked the company to establish a center in San Francisco for runaway children.

But Ms. Reed said "We've gone about as far as we can go. Now, Mr. Dorosin says he wants to discuss all this with me over 'a fine dinner.' I'm not quite sure what that means."

Mr. Heskett, of Harvard, speculated that for millions of frustrated customers, Mr. Dorosin may be a consumer hero.

"As a nation, we have studied service more systematically than any other country but, as individuals, we are not a nation of active complainers," he said.

Citing a recent British Airways study in which 90 percent of the respondents who experienced problems with the airline said they never actually filed a complaint, Mr. Heskett said that not formally complaining was fairly standard behavior. "Most people feel it's just too much trouble to complain and they won't get any satisfaction anyway," he said.

But one irate consumer with deep pockets can have real impact, said Ron Zemke, the president of Performance Research Associates, a corporate service consulting firm based in Minneapolis. "Breakdowns happen, but at this point in the Starbucks situation, it's way beyond who's right and who's wrong," said Mr. Zemke, a co-author, with Christian Anderson, of "Delivering Knock Your socks Off Service" (Amacom, 1992), a widely read business manual.

"Mr. Dorosin obviously feels he has not gotten any real sympathy for his situation from Starbucks, even though they have volunteered to rectify his material complaints," Mr. Zemke said. "That lack of empathy, whether it's real or perceived, is what this case revolves on, and it's the point with which other consumers identify. The only way a company can get out of a hole like this is to make a dramatic gesture, and for a $500-millon-a-year company, that would not be too painful," he said.

"If I were Starbucks," he continued, "I'd be in San Francisco right now with a shovel, digging the foundation for that runaway center."

San Francisco Examiner, Wednesday, May 31, 1995, pp. B1 and B3.

Steamed at Starbucks by John Flinn

Espresso-maker incident boils over into one-man crusade for public apology

Jeremy Dorosin is one angry customer. All he wanted from Starbucks, he says, was a working espresso maker'and an apology.

That was six weeks, four Wall Street Journal ads and $10,000 ago. Now Dorosin says it is going to take more to make him happy. A lot more.

"If they thought I was angry before, they have no idea how angry I am now," he said. "I'm not going to go away."

Dorosin, a 37-year-old owner of a Walnut Creek dive shop, has already spent $10,000 of his own money running a bitter and expensive campaign against the Seattle-based coffeehouse chain.

With a toll-free number publicized in ads in the Journal, he has been gathering complaints from other Starbucks customers about what he says is shoddy service and a disdainful attitude.

His threat: Either Starbucks takes out a full-page ad in the Journal apologizing to him and other customers, or he'll take out two full pages publishing the complaints he's gathered.

Starbucks says it has tried to apologize to Dorosin, but it won't do so in a full-page ad in the Journal. Said spokeswoman Cheri Libby: "We've tried to resolve this, but his demands are unreasonable."

Besides being good for the Wall Street Journal, the dispute offers important lessons for other businesses, experts say.

As consumers become increasingly vocal'through word-of-mouth, letters to newspapers and postings on the Internet'firms are seeking strategies to prevent small problems from escalating into major confrontations.

In the case of Dorosin and Starbucks, it's too late for that.

The dispute started in April, when Dorosin bought a $299 espresso maker for himself and a $169 model as a wedding present for a friend from the Starbucks on Solano Avenue in Berkeley.

Both machines spewed trouble. Dorosin's leaked water and would not make proper foam. Starbucks took it back and lent him another model.

The machine he bought for his friend had even bigger problems: It was rusted an, Dorosin said, missing some key parts. He believes Starbucks sold him used goods.

Starbucks denies this. The company said some machines develop rust while being tested at the factory. The machine Dorosin bought, the company acknowledges, should have been cleaned. Starbucks denies that it was missing parts.

Dorosin called the store, the regional Starbucks office in San Francisco and, finally, corporate headquarters in Seattle. He demanded that Starbucks send his friend a letter of apology acknowledging they had sold a used machine. Also, he wanted Starbucks to send the bride a top-of-the-line espresso maker as an apology.

That model, said Starbucks, sells for $2,495.

Starbucks countered with an offer to replace both the espresso machines with $269 models. The company said it also offered Dorosin $30 in cash'the difference in price between the replacement model and the one he'd bought himself. Dorosin said he was never offered the $30.

"We were certainly willing to send a letter apologizing, but we weren't going to say we sold him used goods, because that is not true," spokeswoman Libby said.

Eventually, Starbucks said, the company mailed Dorosin a full refund and his friend a new espresso maker. Not good enough, said Dorosin. He and his friend returned the packages unopened. Then he threatened to take out an ad in the Wall Street Journal.

"They thought I was bluffing," Dorosin said.

He wasn't. On May 5 Dorosin bought an ad in the Journal's Northern California edition. "Had any problems at Starbucks Coffee'" it asked, and listed a toll-free number to call.

Dorosin took out a second ad in the Journal's western states edition the following week, a third the week after that and a fourth the week after that.

In addition to calls from other angry customers'more than 3,000, he estimates'Dorosin said he has received 300 to 400 letters and enough cash donations to keep his campaign running for a while.

Dorosin's ultimate threat: If Starbucks doesn't make him happy he vows to take out a double full-page ad in the Journal printing many of these complaints.

"People are upset about spilled coffee, about getting regular when they ordered decaf, about being talked to rudely," Dorosin said. "These aren't just anyone complaining'they're doctors, lawyers and CEOS."

What, exactly, does he want'

"A full-page ad in the Wall Street Journal apologizing to everyone," Dorosin said. "It's more than just about apologizing. It's about them taking responsibility for treating their customers the way they do."

The Dallas Morning News, Friday, June 2, 1995, p. 10D.

Angry Starbucks customer seeking his coffee measure of revenge

Seattle Post-Intelligencer

It isn't every day Barbara Reed, customer relations manager for Starbucks Corp., offers to fly 800 miles to meet with an angry customer.

But Jeremy Dorosin isn't just any miffed latte lover.

The 37-year-old dive shop owner from Walnut Creek, Calif., became so steamed over how he says he was treated after buying espresso machines at a Starbucks store in Berkeley, Calif., that he began taking out ads in The Wall Street Journal inviting other customers to share their complaints about the chain via letters and a toll-free telephone number.

The monthlong campaign has cost Mr. Dorosin more than $10,000.

Mr. Dorosin says all he wanted was an apology after Starbucks sold him two espresso machines that didn't work or had parts missing, a claim Starbucks denies.

"These people are going to learn not to treat me this way," Mr. Dorosin said.

"The quality of our service and product is improving, not deteriorating," said Orin Smith, Starbucks' president and chief operating officer. "We've never had a response from a customer that even came close."

"Acknowledging something we didn't do and taking out an ad worth thousands of dollars isn't responsible," said Mr. Smith, who contends Mr. Dorosin is angry at the world and "wants to take it out on us."

S&MM, August 1995, p. 15.

Trouble Brews for Starbucks

What do you do with irate customers who demand more than just a refund or a replacement product for their troubles?

That's what Starbucks wants to know, after a customer of one of its California stores launched his own public campaign against the coffee company. Starbucks, which has been touted for its proactive customer service and employee relations, is now steeped in a public relations nightmare.

In May, a Berkeley customer, Jeremy Dorosin, placed four ads in the Wall Street Journal complaining of Starbucks' poor customer service. He was irate because the company would not replace two espresso machines he had bought with upgraded models, and because employees at the store were rude to him. After the ads ran, Starbucks sent an apology letter, replacement machines, and accoutrements'all of which Dorosin refused. He has since asked Starbucks to place a two-page ad in the Journal apologizing to him, and he wants Starbucks to build a center for runaway children.

Starbucks says it won't budge from the original offer. "We truly believe that we have done everything reasonable to rectify the situation," says Barbara Reed, Starbucks' manager of customer relations.

Starbucks has an aggressive customer service program to prevent these problems from escalating, and a Mercer Management Consulting benchmarking study says the company has an excellent service record. Reed works with five other employees to answer customer concerns. "When a situation comes up'we read every letter and respond to each call," Reed says. "We view these comments as opportunities to improve." The company passes along comments to different departments such as marketing and store planning. Starbucks uses trained shoppers who walk through the 570 stores each month to test service, quality, and environment.

Employees receive 24 hours of classroom training on developing knowledge about the coffee and machines, and on customer service. "However, in all our classes, a customer service theme runs throughout," says Reed. The employees are expected to follow a company mission and five guiding principles, which include providing a "great work environment" and "developing enthusiastically satisfied customers all of the time." Mercer estimates that Starbucks spends approximately $1,000 in training for each employee during the first six months of employment.

So what happened with this disgruntled customer? Starbucks issued a statement saying: "It is unfortunate that in this particular case we were unable to please Jeremy Dorosin. We regret that our efforts were not sufficient to meet his needs, but there is nothing more we can do." ' Allison Lucas

S&MM asked customer service experts "Did Starbucks do the right thing?"

Richard Whiteley, vice chairman Boston-based The Forum Corporation and author of The Customer Driven Company:

"[Dorosin's requests] are outlandish. The fact of the matter is, irate customers are becoming terrorist. He was certainly in his rights to demand outstanding service, but it is outrageous to expect the company to respond with a two-page ad and a runaway center. The lesson is, you have to nip the problem in the bud, but you don't necessarily give customers everything they think they deserve or want. This seemingly innocent problem has gotten out of hand."

Ron Zemke, president of the corporate service consulting firm Performance Research Associates and author of The Service Edge:

"This is a timing problem. You have to start applying bandages early and dramatically, and you have to have a lot of empathy so the customers feel they have been heard and dealt with in an expeditious fashion. If you wait and think it through, you are too late. Also, Starbucks is not having any fun with this situation. This is not war or famine, this is some customer from hell who is being crazy and Starbucks has the opportunity to be just as crazy."

The Scotsman, July 28, 1995, p. unknown.

Full head of steam

When Jeremy Dorosin turned his complaint against the Starbucks coffee company into a campaign, he brewed up a storm, reports Richard Kelly Heft from San Francisco

Affecting his best Clint Eastwood impersonation, Jeremy Dorosin, consumer vigilante, leans towards his interviewer and paraphrases Dirty Harry: "Now, was that five Wall Street Journal ads I took out last week or was it six' To tell you the truth, in all this mistreatment, I've lost count. The question is, is Starbucks sorry' Well, are they'"

At this point it would be fair to say that Seattle-based Starbucks, the largest chain of coffee stores in the United States, is mighty sorry. Sorry they were unable to quietly resolve a complaint over a couple of defective espresso machines and avoid an embarrassing ongoing public squabble waged by Dorosin in the national media.

Angered by the company's refusal to make what he considered satisfactory amends, Dorosin became a retailer's nightmare. A problem customer who wouldn't go away and who has the money, time and desire to ensure his beefs are heard far and wide.

In successive weeks, beginning in early May, Dorosin placed four advertisements in the Wall Street Journal soliciting other dissatisfied Starbucks customers to call his free phone number, write or fax him. The wellspring of support he received became a public relations disaster for Starbucks and a springboard for his one-man crusade.

Dorosin, 37, would be an intimidating prospect for any salesperson. He is a thick-set, muscular man with a flat-top brush cut and an affinity for big heavily-jewelled rings. He removes his sunglasses before being photographed because, he says, "they make me look like the Terminator."

In fact, since launching his vendetta against Starbucks, the company could be forgiven for believing it had been struck by a one-man wrecking crew.

The drama began when Dorosin, of Walnut Creek in northern California, bought a $299 Estro Vapone espresso machine which proved to be faulty. He returned the machine and was given another, less expensive model on loan while the original was being repaired. Pleased with the replacement, he returned to buy one for a friend as a wedding present. He says he was suspicious of the machine, the last one available in the store, from the start.

The box was dog-eared and appeared to be used, he says. Reassured it was not uncommon for boxes of European machines to arrive "a bit roughed up" Dorosin proceeded to purchase the machine and asked the cashier for the free half pound of coffee normally included with a coffee maker.

When the cashier refused, he suggested he at least be given a free cappuccino. He claims the cashier told him: "You get nothing."

"I was humiliated to be standing there in front of the other customers and treated that way," says Dorosin.

A bad situation was made worse when his friend called to say the wedding gift appeared rusted and was missing components. "That's when I got mad," says Dorosin.

Starbucks, which has a reputation for attention to customer service, admits the cashier reacted inappropriately, and has apologised to Dorosin from the start. It was unwilling, however, to follow through with his suggestions that it make amends by sending its "nicest espresso machine" to his friend. That machine was $2,495 and out of the question, says the company, as was the next to nicest at $450. Starbucks however offered to refund Dorosin's money or substitute new machines.

Dissatisfied with this response, Dorosin took matters into his own hands by placing a small advertisement in a local edition of the Wall Street Journal. It said simply: "Had any problems with Starbucks Coffee? You are not alone. Interested? Let's Talk." He also provided a free phone number so disgruntled customers from across the US could call him at no charge.

Over the next three weeks he placed three similar ads, soliciting letters, and claiming his support was growing. In the second ad, for example, he noted: "Over 1,000 calls say you're not alone," a subsequent edition thanked a rival coffee company for its support.

In all, Dorosin's four advertisements cost him more than $4,900 and he has run up more than $3,200 in long distance charges for the free phone number after receiving thousands of calls.

After the second advertisement appeared, the company sent two replacement espresso machines, two pounds of coffee, a steaming pitcher, condiment shakers, cups and saucers along with a $30 refund and letters of apology to Dorosin and his friend. He calls the offer "pathetic."

"It was too little too late. They weren't sorry about what had happened, they were sorry about all the attention they had gotten."

Armed with several hundreds of letters and hundreds of taped calls, Dorosin attracted the attention of local television stations and eventually the Associated Press, landing him in 38 newspapers across the country. Soon the major networks came calling, including NBC's Today show which had planned an on-air meeting between Dorosin and Starbucks chairman, Howard Schultz, until the company rejected the idea.

Meanwhile, Dorosin seems to be relishing every second of his 15 minutes in the public eye. "I'm not going to sue them," he says. "Why ruin things, I'd just be another lawsuit. Why spoil the fun?"

Dorosin's demands have been nothing if not audacious. After his complaint first went public he asked that Starbucks place a two-page advertisement in the Wall Street Journal'at a cost of $2,247,000'apologising for its treatment of him and publicly acknowledging it had sold him a used machine. The company dismissed the notion.

More recently, he has called on the company to open a runaway shelter in San Francisco as a "win-win compromise." If filled with the extras Dorosin envisions such as in-house counselling, a medical clinic, dining hall, shuttle service and a drug rehab centre, the facility could cost the company more than $5 million.

"It's always something new with Mr. Dorosin," says Cheri Libby, a Starbucks spokeswoman. "We have done all we can do for him. Opening a runaway shelter has nothing to do with a faulty espresso machine."

Dorosin contends his crusade against Starbucks is now being waged on behalf of the "thousands of angry customers" that have contacted him. "I have a commitment to the people who confided in me and are counting in representing their best interests," he says.

The showdown has caught the attention of business analysts, many of whom see this case as a warning sign to retailers. Citing a British Airways study in which 90 per cent of respondents who experienced problems with the airline never complained, James Heskett, a Harvard business professor, believes Dorosin will be seen by many as a hero.

Ron Zemke, president of Performance Research Associates, a corporate service consulting firm, says: "Right now the company has no choice but to do something very big and very public. If I were Starbucks, I'd start digging the foundation of that runaway centre."

The battle promises to be long and protracted. Dorosin says he has a co-author and publisher lined up to write a book about the experience.

He has been approached about selling rights to a made-for-TV movie and best-selling author Faith Popcorn is planning to feature him in an upcoming book on consumer trends.

"They [Starbucks] think I'll just give up and fade away," says Dorosin. "But I'm not going away. I'm going to make this my life's mission or I'll turn this into an entire career if I have to."

The Australian, July 4, 1995, p. unknown.

Consumer crusader rattles retailer

A lone consumer warrior is taking a US corporate giant to task, reports RICHARD HEFT in San Francisco

Affecting his best Clint Eastwood impersonation, consumer vigilante Mr. Jeremy Dorosin leans towards his interviewer and paraphrases Dirty Harry: "Now, was that five Wall Street Journal ads I took out last week or was it six, to tell you the truth, in all this mistreatment, I've lost count. The question is, is Starbucks sorry, well, are they?"

At this point it would be fair to say that Seattle-based Starbucks, the largest chain of coffee stores in the United States, is mighty sorry. Sorry they were unable to quietly resolve a complaint over a couple of defective espresso machines and avoid an embarrassing public squabble waged by Mr. Dorosin in the national media.

Angered by the company's refusal to make what he considered satisfactory amends, Mr. Dorosin became a retailer's nightmare'an angry customer who would not go away and who has the money, time and desire to ensure his beefs are heard far and wide.

In successive weeks, beginning in early May, Mr. Dorosin placed four advertisements in the Wall Street Journal soliciting other dissatisfied Starbucks customers to call his toll free number, write or fax him. The wellspring of support he received became a public relations disaster for Starbucks and a springboard for his one-man crusade.

"I decided to place ads in the Wall Street Journal because I wanted to humiliate them in front of their peers the way I'd been humiliated in front of mine," Mr. Dorosin told The Australian.

The drama unfolded after Mr. Dorosin, of Walnut Creek in Northern California, bought two espresso machines, one for himself and one as a wedding present for a friend. Both turned out to be defective. He also had problems with the cashier who refused to give him the free 500gm of coffee normally included with such purchases.

Finally, a bad situation was made worse when the friend who received the gift later called to say the machine was rusted and missing components.

"That's when I got mad," Mr. Dorosin said. After numerous calls to Starbucks to complain, he said the company's offer to refund his money or replace faulty machines with new ones was "completely inadequate".

He took the matter into his own hands by placing a 5cm x 10cm advertisement in a local edition of the Wall Street Journal.

It simply said: "Had any problems with Starbucks Coffee? You are not alone. Interested? Let's Talk." He provided a toll-free number so disgruntled customers from across the United States could call him at no charge. In all, Mr. Dorosin's four advertisements cost him more than $US4900 ($6900) and he has rung up more than $US3200 in long-distance charges for his toll-free number after being flooded with thousands of calls.

After the second of the advertisements appeared, the company sent two replacement espresso machines, 1kg of coffee, a steaming pitcher, condiment shakers, cups and saucers along with a $US30 refund and letters of apology to Mr. Dorosin and his friend.

He calls the offer "pathetic". "It was too little too late. They weren't sorry about what had happened, they were sorry about all the attention they had gotten."

Armed with several hundred letters and hundreds of taped calls, Mr. Dorosin attracted the attention of local television stations and eventually Associated Press, landing him in 38 newspapers across the country. Soon the major networks came calling, including NBC's Today Show, which had planned an on-air meeting between Mr. Dorosin and the chairman of Starbucks, Mr. Howard Schultz, until the company nixed the idea.

Mr. Dorosin's demands have been nothing if not audacious. After his complaint first went public he asked that Starbucks place a two-page advertisement in the Wall Street Journal'at a cost of $US 247,000 apologising for its treatment of him and publicly acknowledging it had sold him a used machine. The company dismissed the notion.

More recently, he has called for a Starbucks-funded runaway shelter in San Francisco, as a "win-win compromise". "It's always something new with Mr. Dorosin," Starbucks spokeswoman Ms. Cheri Libby said.

"We have done all we can do for him. We do not see how opening a runaway shelter has anything to do with a faulty espresso machine," she said.

He contends his crusade is now being waged on behalf of the "thousands of angry customers" that have contacted him.

"I have a commitment to the people who confided in me and are counting on me to represent their best interests," he said.

The showdown has caught the attention of business analysts, many of whom see this case as a warning sign to retailers.

Citing a British Airways study in which 90 per cent of respondents who experienced problems with the airline never complained, Harvard business professor Dr. James Heskett believes Mr. Dorosin will be seen as a consumer hero to many.

The president of corporate service consulting firm Performance Research Associates, Mr. Ron Zemke, said: "Right now the company has no choice but to do something very big and very public. If I were Starbucks, I'd start digging the foundation of that runaway centre."

The battle promises to be long and protracted.

Mr. Dorosin said he has a co-author and publisher lined up to write a book about the experience, Harper's magazine has contracted him about publishing some of the letters and bestselling author Faith Popcorn is planning to feature him in an upcoming book on consumer trends.

"They (Starbucks) think I'll just give up and fade away," Mr. Dorosin said. "But I'm not going away. I'll turn this into an entire career if I have to."

Contra Costa Times, Saturday, May 27, 1995, pp. 1A and Back Page.

Angry consumer carries out crusade against Starbucks

Walnut Creek ' Jeremy Dorosin is a consumer on a crusade that should strike a chord with everyone ever slighted by a rude clerk or arrogant corporate executive.

He wants a public apology from a business that he believes mistreated him.

Dorosin, a Pinole resident who runs a Walnut Creek scuba shop, is going to extraordinary lengths to achieve his goal. He is running national newspaper advertisements listing a toll-free phone number to attract other disgruntled customers of the object of his scorn, the popular coffee chain Starbucks Corp.

In the three weeks since Dorosin ran his first ad in the Wall Street Journal, Dorosin has apparently touched a nerve. So far, he says, he has received more than 3,000 calls and scores of faxed letters from consumers scolding Starbucks for the way he says he was treated at the chain's Berkeley store on Solano Avenue.

What's more, Dorosin says he has lined up enough support to finance his plans to spend up to $5 million on ads continuing to skewer Seattle-based Starbucks over the next six months. Dorosin already has spent about $10,000 to pay for four ads in the Wall Street Journal and for his toll-free number, 1-800-510-3483.

Dorosin, 37, swears he won't go away until Starbucks pays more than $100,000 for a full-page ad in the Wall Street Journal carrying an apology to him.

"I'm not asking for any money, so they can't say I'm trying to blackmail them," Dorosin says. "This isn't about money. It's about treating people right."

To Starbucks, Dorosin's campaign seems like a tempest in the teapot. The company can't fathom Dorosin's hostility because its customer service department went to great lengths to find a reasonable resolution to his grievances, said Starbucks spokeswoman Cheri Libby.

"We pride ourselves on providing customer satisfaction," she said.

Starbucks suspects that Dorosin is targeting the company so he can collect material for a book that he is compiling on morality. The company also suggests its competitors in the coffee industry may be bankrolling him.

Dorosin brands the theory linking the ads to his book as "absolute nonsense." He won't identify the companies that have agreed to finance his campaign.

The dispute between Dorosin and Starbucks dates to his purchase last month of a $169 espresso machine in Starbucks' Berkeley store. Dorosin picked the machine as a special wedding gift for a female friend who had just survived a bout with cancer.

When the bride opened the gift and found a rusty machine with missing parts, Dorosin became livid. He believed Starbucks had sold him a used machine.

Libby says the machine may have been tested before reaching the store, but stresses that Starbucks would never knowingly sell a used machine.

As compensation for the problem, Dorosin says he asked Starbucks to send the bride a letter of apology accepting blame for the faulty gift in addition to a top-of-the-line espresso machine. Starbucks says Dorosin wanted a $2,500 espresso machine for less than $200. Dorosin says he wanted a $400 machine for the bride. Starbucks finally offered a $269 machine.

When Dorosin couldn't get what he wanted from Starbucks' corporate headquarters, he decided to air his grievances publicly. After his second ad appeared, Starbucks tried to mail Dorosin a full refund and give the bride a new machine, but it was too late.

Dorosin will now settle for nothing less than a full-blown apology in the Wall Street Journal.

Starbucks, which earned $10.2 million last year on 1994 sales of $285 million, isn't prepared to go to those lengths. "How can we apologize for something that we didn't do?" Libby said.

In the meantime, Dorosin is preparing to buy a full-page ad in the Wall Street Journal to publish some of the letters he has received from consumers responding to his previous ads.

Starbucks probably won't want to excerpt the letters in its annual report.

In one typical diatribe, Santa Clara County management consultant Thomas A. Bottenberg writes, "Starbucks has unleashed the fury of every customer who has ever been approached incorrectly or taken for granted."

Dorosin is confident he will teach Starbucks an expensive lesson.

"Everybody in retailing knows the customer is always right, because unhappy customers can do a lot of damage," Dorosin says. "If a customer is dissatisfied, 250 people will probably hear about it. I think I have definitely increased that ratio."