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Starbucks Faces Sales Drop and Customer Anger

Starbucks struggles with price hikes, boycotts, and protests, leading to a 3% drop in sales in the US market.

Try this article at a different level?

 

Starbucks is having problems because they raised their prices and some customers are upset. People like Andrew Buckley have stopped buying from Starbucks. Sales have gone down, especially in the US. The company’s CEO, Laxman Narasimhan, says the drop is because customers are being careful with money and there’s some wrong information going around.

Other fast-food places like McDonald’s and Burger King are also seeing fewer sales. But experts think Starbucks’ problems are mostly about the company itself. Starbucks has been dealing with union issues and people are unhappy with their stance on certain global events. These issues have led to boycotts, which hurt their sales.

In New York, where there are many Starbucks cafes, business is mixed. Some stores are empty, while others get mobile orders. Loyal customers think Starbucks could improve by lowering prices and offering better food. The company is now seen more as a big chain rather than a cool place to hang out. Starbucks needs to work hard to win back customers and fix the problems caused by the boycotts.

Original news source: Price hikes and boycotts: Is trouble brewing at Starbucks? (BBC)

🎧 Listen:

Slow

Normal

Fast

📖 Vocabulary:

1upsetFeeling unhappy or angry
2especiallyMore than usual
3CEOThe person in charge of a company
4carefulPaying close attention to avoid mistakes
5informationFacts or details about something
6expertsPeople who know a lot about a subject
7unionA group of workers who join together to protect their rights
8stanceAn opinion or position on an issue
9boycottChoosing not to buy or use something as a protest
10loyalAlways supporting someone or something
11improveTo make something better
12chainA group of businesses owned by the same company

Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: Divide the class into pairs or small groups. Give each group a copy of the article. Instruct them to read the article together and then create a summary of the main points. They should focus on answering the questions: Why is Starbucks having problems? What are the reasons for the drop in sales? After they have finished, have each group share their summary with the rest of the class.

– Opinion Poll
Instructions: Ask the students to form small groups. Assign each group a role: Starbucks customers, Starbucks employees, or Starbucks management. Give each group a list of questions related to the article, such as “Do you think Starbucks’ price increase was justified?” or “What could Starbucks do to improve customer satisfaction?” Instruct the groups to discuss the questions within their roles and come up with their opinions. After they have discussed, have each group present their opinions to the rest of the class.

– Vocabulary Pictionary
Instructions: Write a list of vocabulary words from the article on the board. Divide the class into pairs. One student from each pair will choose a word from the list and draw a picture to represent it. The other student must guess the word based on the drawing. They can only communicate through gestures and drawing, no speaking allowed. After a certain amount of time, have the pairs switch roles and continue the game.

– Pros and Cons
Instructions: Divide the class into two groups. Assign one group the task of listing the pros of Starbucks raising their prices, and the other group the task of listing the cons. Give the groups a few minutes to brainstorm their lists. Then, have each group present their lists to the rest of the class. After both groups have presented, facilitate a class discussion about the pros and cons of raising prices.

– Future Predictions
Instructions: Instruct the students to work in pairs or small groups. Give each group a set of sentence starters related to the future of Starbucks, such as “In five years, Starbucks will…” or “If Starbucks doesn’t fix their problems, they will…” Instruct the groups to complete the sentence starters with their predictions and then discuss their ideas together. After they have finished, have each group share their predictions with the rest of the class.

🤔 Comprehension Questions:

1. Why are some customers upset with Starbucks?
2. What has happened to Starbucks’ sales recently?
3. Why do experts think Starbucks is having problems?
4. What are some issues that Starbucks is dealing with?
5. How is business at Starbucks in New York?
6. What do loyal customers think Starbucks could do to improve?
7. Why does Starbucks need to work hard to win back customers?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

(1)______ is having problems because they raised their (2)______ and some customers are upset. People like Andrew (3)______ have stopped buying from Starbucks. Sales have gone down, especially in the US. The company’s CEO, Laxman Narasimhan, says the drop is because customers are being careful with money and there’s some wrong information (4)______ around.

Other fast-food places like McDonald’s and Burger King are also seeing fewer sales. But (5)______ think Starbucks’ (6)______ are mostly about the company itself. Starbucks has been dealing with union issues and people are unhappy with their stance on certain global (7)______. These issues have led to boycotts, which hurt their sales.

In New York, where there are many Starbucks cafes, business is mixed. Some stores are empty, while (8)______ get (9)______ orders. Loyal customers think Starbucks could improve by lowering prices and offering (10)______ food. The company is now seen (11)______ as a big chain rather than a (12)______ place to hang out. Starbucks needs to work hard to win back customers and fix the problems caused by the boycotts.
Go to answers ⇩

💬 Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What is Starbucks?
2. Have you ever been to Starbucks? What did you think?
3. How would you feel if your favorite store raised their prices?
4. Do you like Starbucks? Why or why not?
5. Do you think it’s important for a company to have good prices? Why or why not?
6. Have you ever boycotted a store? Why or why not?
7. How do you think Starbucks can win back their customers?
8. What do you think about McDonald’s and Burger King having fewer sales?
9. What is a union? Do you think it’s important for workers to have unions? Why or why not?
10. Have you ever had a bad experience at a restaurant? What happened?
11. How do you feel about big chain stores? Do you prefer smaller, local businesses? Why or why not?
12. Do you think Starbucks’s problems are mostly their own fault? Why or why not?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. upset
2. especially
3. CEO
4. careful
5. information
6. experts
7. union
8. stance
9. boycott
10. loyal
11. improve
12. chain

Meanings:
(A) A group of businesses owned by the same company
(B) The person in charge of a company
(C) People who know a lot about a subject
(D) A group of workers who join together to protect their rights
(E) More than usual
(F) Always supporting someone or something
(G) An opinion or position on an issue
(H) To make something better
(I) Feeling unhappy or angry
(J) Choosing not to buy or use something as a protest
(K) Facts or details about something
(L) Paying close attention to avoid mistakes
Go to answers ⇩

🔡 Multiple Choice Questions:

1. Why are some customers upset with Starbucks?
(a) They changed their menu
(b) They raised their prices
(c) They closed some stores
(d) They started selling bad coffee

2. Who has stopped buying from Starbucks?
(a) Andrew Buckley
(b) McDonald’s and Burger King
(c) Laxman Narasimhan
(d) The CEO of Starbucks

3. Why have sales gone down at Starbucks?
(a) They changed their coffee recipe
(b) They opened too many new stores
(c) Customers are being careful with money
(d) They started selling bad food

4. What do experts think is the main reason for Starbucks’ problems?
(a) McDonald’s and Burger King
(b) Issues with unions and global events
(c) Customers being careful with money
(d) Wrong information going around

5. How are other fast-food places like McDonald’s and Burger King doing?
(a) They are doing better than ever
(b) They are not affected by Starbucks’ problems
(c) They are closing down
(d) They are also seeing fewer sales

6. What do loyal customers think Starbucks could improve?
(a) Closing down some stores
(b) Raising their prices even more
(c) Changing their logo
(d) Lowering prices and offering better food

7. How is business at Starbucks in New York?
(a) Mixed – some stores are empty, while others get mobile orders
(b) All stores are empty
(c) All stores are full
(d) All stores only get mobile orders

8. How is Starbucks now seen by customers?
(a) More as a cool place to hang out rather than a big chain
(b) More as a coffee shop than a fast-food place
(c) More as a big chain rather than a cool place to hang out
(d) More as a cool place to hang out than a big chain

Go to answers ⇩

🕵️ True or False Questions:

1. Starbucks lowered their prices and some customers are angry.
2. Andrew Buckley is one customer who continued buying from Starbucks.
3. Starbucks is facing issues with unions and people are unhappy with their stance on certain global events.
4. Starbucks needs to raise prices, offer worse food, and not work hard to win back customers affected by boycotts.
5. Starbucks’ sales have gone down, especially in the US.
6. Other fast-food places like McDonald’s and Burger King are also experiencing fewer sales.
7. The CEO of Starbucks, Laxman Narasimhan, says customers are spending freely and there is accurate information going around.
8. Some Starbucks stores in New York are empty, while others receive mobile orders.
Go to answers ⇩

📝 Write a Summary:

Write a summary of this news article in two sentences.




Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. Why are some customers upset with Starbucks?
2. What has happened to Starbucks’ sales in the US?
3. What are some of the problems Starbucks is facing?
4. How are other fast-food places like McDonald’s and Burger King doing with their sales?
5. What can Starbucks do to improve and win back customers?

Answers

🤔✅ Comprehension Question Answers:

1. Why are some customers upset with Starbucks?
Some customers are upset with Starbucks because they raised their prices.

2. What has happened to Starbucks’ sales recently?
Starbucks’ sales have gone down recently.

3. Why do experts think Starbucks is having problems?
Experts think Starbucks is having problems mostly because of issues within the company itself, like union problems and their stance on global events.

4. What are some issues that Starbucks is dealing with?
Starbucks is dealing with union issues and people being unhappy with their stance on global events.

5. How is business at Starbucks in New York?
Business at Starbucks in New York is mixed. Some stores are empty while others get mobile orders.

6. What do loyal customers think Starbucks could do to improve?
Loyal customers think Starbucks could improve by lowering prices and offering better food.

7. Why does Starbucks need to work hard to win back customers?
Starbucks needs to work hard to win back customers because they have lost some due to boycotts and they need to fix the problems caused by these boycotts.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) Starbucks
(2) prices
(3) Buckley
(4) going
(5) experts
(6) problems
(7) events
(8) others
(9) mobile
(10) better
(11) more
(12) cool
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. upset
Answer: (I) Feeling unhappy or angry

2. especially
Answer: (E) More than usual

3. CEO
Answer: (B) The person in charge of a company

4. careful
Answer: (L) Paying close attention to avoid mistakes

5. information
Answer: (K) Facts or details about something

6. experts
Answer: (C) People who know a lot about a subject

7. union
Answer: (D) A group of workers who join together to protect their rights

8. stance
Answer: (G) An opinion or position on an issue

9. boycott
Answer: (J) Choosing not to buy or use something as a protest

10. loyal
Answer: (F) Always supporting someone or something

11. improve
Answer: (H) To make something better

12. chain
Answer: (A) A group of businesses owned by the same company
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. Why are some customers upset with Starbucks?
Answer: (b) They raised their prices

2. Who has stopped buying from Starbucks?
Answer: (a) Andrew Buckley

3. Why have sales gone down at Starbucks?
Answer: (c) Customers are being careful with money

4. What do experts think is the main reason for Starbucks’ problems?
Answer: (b) Issues with unions and global events

5. How are other fast-food places like McDonald’s and Burger King doing?
Answer: (d) They are also seeing fewer sales

6. What do loyal customers think Starbucks could improve?
Answer: (d) Lowering prices and offering better food

7. How is business at Starbucks in New York?
Answer: (a) Mixed – some stores are empty, while others get mobile orders

8. How is Starbucks now seen by customers?
Answer: (c) More as a big chain rather than a cool place to hang out
Go back to questions ⇧

🕵️✅ True or False Answers:

1. Starbucks lowered their prices and some customers are angry. (Answer: False)
2. Andrew Buckley is one customer who continued buying from Starbucks. (Answer: False)
3. Starbucks is facing issues with unions and people are unhappy with their stance on certain global events. (Answer: True)
4. Starbucks needs to raise prices, offer worse food, and not work hard to win back customers affected by boycotts. (Answer: False)
5. Starbucks’ sales have gone down, especially in the US. (Answer: True)
6. Other fast-food places like McDonald’s and Burger King are also experiencing fewer sales. (Answer: True)
7. The CEO of Starbucks, Laxman Narasimhan, says customers are spending freely and there is accurate information going around. (Answer: False)
8. Some Starbucks stores in New York are empty, while others receive mobile orders. (Answer: True)
Go back to questions ⇧

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