Trouble seems to be brewing at Starbucks as the company faces backlash from customers and boycott calls. The recent price increase has led to a decline in sales, with some loyal customers like Andrew Buckley deciding to quit the firm. The company’s sales have dropped globally, particularly in the US, where sales at stores open for at least a year have fallen by 3%. The decision to raise prices and the crackdown on workers seeking to unionize have contributed to the dissatisfaction among customers. The company’s involvement in political issues has also left a bad taste in some customers’ mouths.

During a conference call discussing the company’s results, Starbucks CEO Laxman Narasimhan acknowledged that sales had been disappointing and attributed it to cautious customers and misinformation. The company plans to bring back business through new menu items, faster service, and promotions. While the company has seen some growth in active rewards members, it acknowledges that the challenges it faces will take time to overcome.

The struggles faced by Starbucks have raised concerns about the state of consumer spending in the economy. Other fast-food brands like McDonald’s and Burger King have also reported softening sales. However, analysts believe that Starbucks’ sales drop reflects more about the company itself rather than the wider economy. The company has been under pressure from union activists and has faced backlash over its stance on the Israel-Gaza conflict.

Starbucks has blamed misinformation for the boycott calls and has taken steps to address the union dispute. However, the impact of the boycott on sales cannot be ignored. Analysts suggest that a quick turnaround may be difficult, comparing it to the brand crisis faced by Chipotle after e-coli outbreaks. Starbucks needs to dampen the negative perception with other initiatives and improvements.

In New York, where Starbucks cafes are abundant, the state of the business is mixed. Some shops appear empty, while others have customers coming in for mobile orders. Customers have expressed their dissatisfaction with recent price hikes and have suggested improvements in the food offerings. The perception of the company has also changed for some, with customers feeling that it has become more like a chain rather than a unique coffee shop.

Overall, Starbucks is facing challenges from dissatisfied customers, boycott calls, and declining sales. The company needs to address these issues and make improvements to regain the trust and loyalty of its customers.

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

🎧 Listen:

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📖 Vocabulary:

Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: In pairs, students will read the article and then summarize the main points in their own words. They should focus on the key information, such as the reasons for Starbucks’ declining sales and the actions the company plans to take to address the issues.

– Opinion Poll
Instructions: In groups, students will discuss their opinions on the article and Starbucks’ current situation. They should answer questions such as: Do you think the price increase is the main reason for the decline in sales? Should Starbucks be involved in political issues? Should the company make changes to its menu and service to attract more customers? Each group will then present their opinions to the class.

– Keyword Taboo
Instructions: In pairs, one student will have a list of keywords from the article. They must describe the word to their partner without using the actual keyword. The partner must guess what the keyword is. This activity will help students practice their vocabulary and comprehension skills.

– Pros and Cons
Instructions: In groups, students will create a list of pros and cons for Starbucks’ current situation. They should consider both the internal factors (such as the price increase and involvement in political issues) and external factors (such as consumer spending and boycott calls). Each group will present their list to the class and discuss their reasoning.

– Future Predictions
Instructions: In pairs, students will discuss and make predictions about the future of Starbucks. They should consider the potential outcomes of the company’s actions to address the current challenges. Students should use modal verbs to express their predictions, such as “might,” “could,” or “will.” Each pair will then share their predictions with the class and explain their reasoning.

🤔 Comprehension Questions:

1. What has led to a decline in sales at Starbucks?
2. How has the company’s involvement in political issues affected customer satisfaction?
3. How does Starbucks plan to bring back business?
4. What concerns have been raised about consumer spending in the economy?
5. What steps has Starbucks taken to address the union dispute?
6. How has the boycott impacted Starbucks’ sales?
7. What comparisons have been made to another brand crisis?
8. What suggestions have customers made for improvements at Starbucks?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

Trouble seems to be brewing at (1)______ as the company faces backlash from customers and boycott (2)______. The recent price increase has led to a decline in (3)______, with some loyal customers like Andrew (4)______ deciding to quit the firm. The company’s sales have dropped globally, particularly in the US, where sales at stores open for at least a year have fallen by 3%. The decision to raise prices and the crackdown on workers seeking to unionize have contributed to the dissatisfaction among customers. The company’s involvement in political issues has also left a bad taste in some customers’ mouths.

During a conference call discussing the company’s results, Starbucks CEO Laxman Narasimhan (5)______ that sales had been disappointing and attributed it to cautious customers and misinformation. The company plans to bring back business through new menu items, faster service, and promotions. While the company has seen some growth in active rewards members, it acknowledges that the challenges it faces will take time to (6)______.

The struggles faced by Starbucks have raised concerns about the state of consumer (7)______ in the economy. Other fast-food brands like McDonald’s and Burger King have also reported softening sales. However, (8)______ believe that Starbucks’ sales drop (9)______ more about the company itself rather than the wider economy. The company has been under pressure from union activists and has faced backlash over its stance on the Israel-Gaza conflict.

Starbucks has blamed misinformation for the boycott calls and has taken steps to address the union dispute. However, the impact of the boycott on sales cannot be (10)______. Analysts suggest that a quick turnaround may be (11)______, comparing it to the brand crisis faced by Chipotle after e-coli outbreaks. Starbucks needs to dampen the negative perception with other (12)______ and improvements.

In New York, where Starbucks cafes are abundant, the (13)______ of the business is mixed. Some shops appear empty, while others have customers coming in for mobile orders. (14)______ have (15)______ their dissatisfaction with recent price hikes and have suggested improvements in the food offerings. The perception of the company has also changed for some, with customers feeling that it has become more like a chain rather than a unique coffee shop.

Overall, Starbucks is facing challenges from dissatisfied customers, boycott calls, and (16)______ sales. The company needs to address these issues and make improvements to regain the trust and loyalty of its customers.
Go to answers ⇩

💬 Discussion Questions:

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

1. How do you feel about the recent price increase at Starbucks?
2. Have you ever boycotted a company before? If so, why? If not, would you consider boycotting Starbucks?
3. What do you think about companies getting involved in political issues? Should they stay neutral or take a stance?
4. How important is it for a company to have loyal customers? Why or why not?
5. What do you think Starbucks could do to improve their sales and regain the trust of their customers?
6. How do you feel about the idea of workers seeking to unionize? Do you think it is a positive or negative development?
7. Have you ever been dissatisfied with a company’s product or service? How did you handle it?
8. Do you think the negative perception of Starbucks will have a long-term impact on their sales? Why or why not?
9. How do you feel about fast-food brands like McDonald’s and Burger King also reporting declining sales? Do you think this reflects a wider economic issue?
10. Have you ever experienced a brand crisis with a company? How did it affect your perception of the company?
11. What improvements would you suggest for Starbucks’ food offerings?
12. Do you think Starbucks has become too much like a chain rather than a unique coffee shop? Why or why not?
13. How important is it for a company to address customer dissatisfaction? Why or why not?
14. Have you ever been cautious about spending money? What factors influence your spending decisions?
15. How do you think Starbucks can overcome the challenges they are currently facing?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. backlash
2. boycott
3. crackdown
4. unionize
5. misinformation
6. cautious
7. promotions
8. analysts
9. activists
10. dispute
11. abundant
12. perception
13. initiatives
14. unique
15. loyalty

Meanings:
(A) A disagreement or argument
(B) A refusal to buy or use goods and services to show disapproval or bring about change
(C) Being careful to avoid potential problems or dangers
(D) Activities or events designed to increase sales or awareness
(E) A strong negative reaction by a large number of people
(F) A strong feeling of support or allegiance
(G) The way in which something is regarded, understood, or interpreted
(H) People who study or analyze data and trends to provide insights
(I) False or inaccurate information spread intentionally or unintentionally
(J) Severe measures to restrict or discourage undesirable behavior
(K) Existing in large quantities; more than enough
(L) To organize workers into a group to collectively bargain for better conditions
(M) Individuals who campaign for social or political change
(N) Being the only one of its kind; unlike anything else
(O) Plans or actions intended to solve a problem or improve a situation
Go to answers ⇩

🔡 Multiple Choice Questions:

1. What has led to a decline in sales at Starbucks?
(a) A recent price increase
(b) Faster service
(c) New menu items
(d) Promotions

2. Where have Starbucks’ sales dropped the most?
(a) Europe
(b) The US
(c) Asia
(d) South America

3. What has contributed to the dissatisfaction among customers?
(a) The company’s involvement in political issues
(b) The decline in sales
(c) The state of consumer spending in the economy
(d) The decision to raise prices and crackdown on workers seeking to unionize

4. What does Starbucks CEO Laxman Narasimhan attribute the disappointing sales to?
(a) The company’s involvement in political issues
(b) The decline in sales at other fast-food brands
(c) Cautious customers and misinformation
(d) Union activists

5. What does Starbucks plan to do to bring back business?
(a) Lower prices
(b) Close stores
(c) Increase prices even more
(d) Introduce new menu items, faster service, and promotions

6. What do analysts believe Starbucks’ sales drop reflects?
(a) The state of consumer spending in the economy
(b) The decline in sales at other fast-food brands
(c) More about the company itself rather than the wider economy
(d) The company’s involvement in political issues

7. What has Starbucks blamed for the boycott calls?
(a) The decline in sales
(b) Misinformation
(c) Union activists
(d) The state of consumer spending in the economy

8. What does Starbucks need to do to regain the trust and loyalty of its customers?
(a) Address the issues and make improvements
(b) Increase prices
(c) Close stores
(d) Continue with the current strategies

Go to answers ⇩

🕵️ True or False Questions:

1. Starbucks CEO Laxman Narasimhan acknowledged that sales had been disappointing.
2. Starbucks does not need to make improvements to regain the trust and loyalty of its customers.
3. Starbucks is facing backlash from customers and boycott calls.
4. Other fast-food brands like McDonald’s and Burger King have also reported strengthening sales.
5. Starbucks’ involvement in political issues has left a positive impression on some customers.
6. Sales at Starbucks stores in the US have risen by 3%.
7. The company’s crackdown on workers seeking to unionize has contributed to customer dissatisfaction.
8. The recent price increase has led to a decline in sales.
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. What has led to the decline in sales at Starbucks?
2. How does Starbucks plan to bring back business?
3. What concerns have been raised about the state of consumer spending in the economy?
4. What steps has Starbucks taken to address the boycott calls and union dispute?
5. What changes have customers suggested for Starbucks to improve?

✅ Answers

🤔✅ Comprehension Question Answers:

1. The recent price increase and crackdown on workers seeking to unionize have led to a decline in sales at Starbucks.
2. The company’s involvement in political issues has left a bad taste in some customers’ mouths, affecting their satisfaction.
3. Starbucks plans to bring back business through new menu items, faster service, and promotions.
4. Concerns have been raised about the state of consumer spending in the economy due to the struggles faced by Starbucks and other fast-food brands reporting softening sales.
5. Starbucks has taken steps to address the union dispute, but the article does not provide specific details about these steps.
6. The impact of the boycott on Starbucks’ sales is not specified in the article.
7. Analysts suggest that a quick turnaround may be difficult for Starbucks, comparing it to the brand crisis faced by Chipotle after e-coli outbreaks.
8. Customers have suggested improvements in the food offerings at Starbucks.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) Starbucks
(2) calls
(3) sales
(4) Buckley
(5) acknowledged
(6) overcome
(7) spending
(8) analysts
(9) reflects
(10) ignored
(11) difficult
(12) initiatives
(13) state
(14) Customers
(15) expressed
(16) declining
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. backlash
Answer: (E) A strong negative reaction by a large number of people

2. boycott
Answer: (B) A refusal to buy or use goods and services to show disapproval or bring about change

3. crackdown
Answer: (J) Severe measures to restrict or discourage undesirable behavior

4. unionize
Answer: (L) To organize workers into a group to collectively bargain for better conditions

5. misinformation
Answer: (I) False or inaccurate information spread intentionally or unintentionally

6. cautious
Answer: (C) Being careful to avoid potential problems or dangers

7. promotions
Answer: (D) Activities or events designed to increase sales or awareness

8. analysts
Answer: (H) People who study or analyze data and trends to provide insights

9. activists
Answer: (M) Individuals who campaign for social or political change

10. dispute
Answer: (A) A disagreement or argument

11. abundant
Answer: (K) Existing in large quantities; more than enough

12. perception
Answer: (G) The way in which something is regarded, understood, or interpreted

13. initiatives
Answer: (O) Plans or actions intended to solve a problem or improve a situation

14. unique
Answer: (N) Being the only one of its kind; unlike anything else

15. loyalty
Answer: (F) A strong feeling of support or allegiance
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. What has led to a decline in sales at Starbucks?
Answer: (a) A recent price increase

2. Where have Starbucks’ sales dropped the most?
Answer: (b) The US

3. What has contributed to the dissatisfaction among customers?
Answer: (d) The decision to raise prices and crackdown on workers seeking to unionize

4. What does Starbucks CEO Laxman Narasimhan attribute the disappointing sales to?
Answer: (c) Cautious customers and misinformation

5. What does Starbucks plan to do to bring back business?
Answer: (d) Introduce new menu items, faster service, and promotions

6. What do analysts believe Starbucks’ sales drop reflects?
Answer: (c) More about the company itself rather than the wider economy

7. What has Starbucks blamed for the boycott calls?
Answer: (b) Misinformation

8. What does Starbucks need to do to regain the trust and loyalty of its customers?
Answer: (a) Address the issues and make improvements
Go back to questions ⇧

🕵️✅ True or False Answers:

1. Starbucks CEO Laxman Narasimhan acknowledged that sales had been disappointing. (Answer: True)
2. Starbucks does not need to make improvements to regain the trust and loyalty of its customers. (Answer: False)
3. Starbucks is facing backlash from customers and boycott calls. (Answer: True)
4. Other fast-food brands like McDonald’s and Burger King have also reported strengthening sales. (Answer: False)
5. Starbucks’ involvement in political issues has left a positive impression on some customers. (Answer: False)
6. Sales at Starbucks stores in the US have risen by 3%. (Answer: False)
7. The company’s crackdown on workers seeking to unionize has contributed to customer dissatisfaction. (Answer: True)
8. The recent price increase has led to a decline in sales. (Answer: True)
Go back to questions ⇧