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)
π§ Listen:
π 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.
π€ Comprehension Questions:
π§βοΈ Listen and Fill in the Gaps:
Trouble seems to be brewing at as the company faces backlash from customers and boycott . The recent price increase has led to a decline in , with some loyal customers like Andrew 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 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 . The struggles faced by Starbucks have raised concerns about the state of consumer in the economy. Other fast-food brands like McDonald's and Burger King have also reported softening sales. However, believe that Starbucks' sales drop 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 . Analysts suggest that a quick turnaround may be , comparing it to the brand crisis faced by Chipotle after e-coli outbreaks. Starbucks needs to dampen the negative perception with other and improvements. In New York, where Starbucks cafes are abundant, the of the business is mixed. Some shops appear empty, while others have customers coming in for mobile orders. have 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 sales. The company needs to address these issues and make improvements to regain the trust and loyalty of its customers.
π¬ Discussion Questions:
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
ππ Vocabulary Meanings:
Click a dot next to a word, then click the dot next to its meaning to draw a line connecting them.
Words
Meanings
π‘ Multiple Choice Questions:
π΅οΈ True or False Questions:
π Write a Summary:
Write a summary of this news article in two sentences.
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