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Starbucks Faces Sales Slump and Boycotts Amid Challenges

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?

 

There’s some trouble going on at Starbucks. People are getting mad and even boycotting the company because they raised their prices. This has caused their sales to go down, especially in the US where sales have dropped by 3%. People are also upset because Starbucks is cracking down on workers who want to form a union. Some customers are also not happy with the company getting involved in political stuff.

The CEO of Starbucks, Laxman Narasimhan, admitted that their sales have been disappointing. He said it’s because people are being cautious with their money and there’s a lot of wrong information going around. To try and fix things, Starbucks is going to add new things to their menu, make their service faster, and do more promotions. They’re also trying to get more people to join their rewards program. But they know it’s going to take time to fix everything.

Starbucks’ troubles are making people worried about how much money people are spending. Other fast-food places like McDonald’s and Burger King are also seeing their sales go down. But experts think that Starbucks’ problems are more about the company itself, not the whole economy. The company has been getting a lot of pressure from people who want the workers to form a union. They’ve also been criticized for their stance on the Israel-Gaza conflict.

Starbucks is saying that the boycott and the union dispute are because people have the wrong information. They’re trying to fix things with the union, but it’s still hurting their sales. Experts think it’s going to be hard for Starbucks to turn things around quickly, kind of like when Chipotle had that big problem with e-coli. Starbucks needs to do more to make people think better of them and make some improvements.

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

🎧 Listen:

Slow

Normal

Fast

📖 Vocabulary:

1boycottingRefusing to buy or use something as a way to protest
2cracking downTaking strong action to stop something
3unionA group of workers who join together to protect their rights
4cautiousBeing careful to avoid risks
5promotionsSpecial deals or offers to attract customers
6rewardsBenefits given to customers for their loyalty
7economyThe system of money and trade in a country
8pressureThe feeling of being forced to do something
9criticizedPointed out the faults or problems with something
10stanceAn opinion or position on an issue
11disputeA disagreement or argument
12expertsPeople who have a lot of knowledge about a subject
13e-coliA type of bacteria that can cause food poisoning
14improvementsChanges made to make something better
15disappointingNot meeting expectations or hopes

Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: In pairs, students will read the article and then work together to write a brief summary of the main points. They should focus on key details such as the reason for the boycott, the drop in sales, and Starbucks’ efforts to fix the situation. Afterward, students can share their summaries with the class and discuss any differences or similarities.

– Opinion Poll
Instructions: Students will form small groups and take turns asking each other questions related to the article. For example, “Do you think Starbucks’ decision to raise prices was a good idea?” or “Do you believe Starbucks’ claim that the boycott is based on misinformation?” After everyone has had a chance to answer, the groups can discuss their opinions and any disagreements that arise.

– Vocabulary Pictionary
Instructions: Write a list of key vocabulary words from the article on the board. In pairs, students will take turns selecting a word and drawing a quick sketch to represent it. Their partner must then guess the word based on the drawing alone. This activity helps to reinforce vocabulary and comprehension of the article.

– Headline Creation
Instructions: In pairs or small groups, students will create catchy headlines for the article. The headlines should summarize the main points and attract readers’ attention. Afterward, students can share their headlines with the class and discuss the different approaches they took.

– Pros and Cons
Instructions: Divide the class into two groups. One group will list the pros of Starbucks’ actions (raising prices, cracking down on unions, etc.), while the other group will list the cons. Each group should discuss and provide reasons for their points. Afterward, the groups can present their lists to the class and have a debate to compare and contrast the pros and cons.

🤔 Comprehension Questions:

1. Why are people boycotting Starbucks?
2. How much have Starbucks’ sales dropped in the US?
3. Why are some customers upset with Starbucks?
4. What reasons did the CEO of Starbucks give for the decrease in sales?
5. What steps is Starbucks taking to try and fix their sales problem?
6. Are other fast-food places also experiencing a decrease in sales?
7. What are some of the criticisms that Starbucks has faced?
8. Why does Starbucks think the boycott and union dispute are happening?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

There’s some trouble (1)______ on at Starbucks. People are getting mad and even boycotting the company because they raised their (2)______. This has (3)______ their sales to go down, especially in the US where sales have dropped by 3%. People are also upset because Starbucks is cracking down on workers who want to form a union. Some customers are also not (4)______ with the company getting involved in political stuff.

The CEO of Starbucks, Laxman Narasimhan, admitted that their (5)______ have been disappointing. He said it’s because people are being cautious with their (6)______ and there’s a lot of wrong information going around. To try and fix (7)______, Starbucks is going to add new things to their menu, make their service faster, and do more promotions. They’re also (8)______ to get more people to join their rewards program. But they know it’s going to take time to fix everything.

Starbucks’ troubles are making people (9)______ about how much money people are spending. Other fast-food places like McDonald’s and Burger King are also (10)______ their sales go down. But experts (11)______ that Starbucks’ problems are more about the (12)______ itself, not the whole economy. The company has been getting a lot of pressure from people who want the workers to form a union. They’ve also been criticized for their stance on the Israel-Gaza conflict.

Starbucks is saying that the boycott and the (13)______ dispute are because (14)______ have the wrong information. They’re trying to fix things with the union, but it’s still hurting their sales. Experts think it’s going to be hard for Starbucks to turn things around quickly, kind of like when (15)______ had that big (16)______ with e-coli. Starbucks needs to do more to make people think better of them and make some improvements.
Go to answers ⇩

💬 Discussion Questions:

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

1. What is a boycott and why are people boycotting Starbucks?
2. How do you feel about Starbucks raising their prices? Why or why not?
3. Do you think it’s fair for Starbucks to crack down on workers who want to form a union? Why or why not?
4. Have you ever been involved in a boycott? If so, what was it for and did it make a difference?
5. How would you feel if your favorite coffee shop got involved in political issues? Why?
6. Do you like Starbucks? Why or why not?
7. What do you think Starbucks can do to improve their sales and reputation?
8. How do you think Starbucks’ troubles are affecting the economy?
9. Do you think it’s important for workers to have the right to form a union? Why or why not?
10. Have you ever been disappointed by a company’s service or product? How did it make you feel?
11. Do you think Starbucks’ problems are more about the company itself or the whole economy? Why?
12. What do you think about Starbucks’ stance on the Israel-Gaza conflict? Should companies get involved in political issues? Why or why not?
13. How do you think Starbucks can regain the trust of their customers?
14. Have you ever participated in a rewards program? If so, did it make you more likely to continue shopping at that store?
15. Do you think Starbucks will be able to turn things around quickly? Why or why not?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. boycotting
2. cracking down
3. union
4. cautious
5. promotions
6. rewards
7. economy
8. pressure
9. criticized
10. stance
11. dispute
12. experts
13. e-coli
14. improvements
15. disappointing

Meanings:
(A) The system of money and trade in a country
(B) Refusing to buy or use something as a way to protest
(C) Pointed out the faults or problems with something
(D) Benefits given to customers for their loyalty
(E) Special deals or offers to attract customers
(F) The feeling of being forced to do something
(G) An opinion or position on an issue
(H) Taking strong action to stop something
(I) A disagreement or argument
(J) Changes made to make something better
(K) Being careful to avoid risks
(L) People who have a lot of knowledge about a subject
(M) A type of bacteria that can cause food poisoning
(N) A group of workers who join together to protect their rights
(O) Not meeting expectations or hopes
Go to answers ⇩

🔡 Multiple Choice Questions:

1. Why are people upset with Starbucks?
(a) They lowered their prices
(b) They started a new rewards program
(c) They opened new stores
(d) They raised their prices

2. How much have Starbucks’ sales dropped in the US?
(a) 10%
(b) 5%
(c) 3%
(d) 1%

3. What is Starbucks doing to try and fix their sales?
(a) Closing down stores
(b) Raising their prices even more
(c) Adding new things to their menu
(d) Firing their workers

4. Why are people worried about Starbucks’ troubles?
(a) They are spending less money
(b) They are spending more money
(c) They are boycotting other fast-food places
(d) They are joining the rewards program

5. What is the main reason experts think Starbucks is having problems?
(a) The whole economy
(b) The company itself
(c) The workers forming a union
(d) The Israel-Gaza conflict

6. What does Starbucks say is the reason for the boycott and the union dispute?
(a) People are spending too much money
(b) People don’t like their new menu items
(c) People are boycotting other fast-food places
(d) People have the wrong information

7. What other fast-food places are also seeing their sales go down?
(a) McDonald’s and Burger King
(b) Subway and Taco Bell
(c) KFC and Pizza Hut
(d) Wendy’s and Chick-fil-A

8. What other company had a big problem with e-coli?
(a) Starbucks
(b) Chipotle
(c) McDonald’s
(d) Burger King

Go to answers ⇩

🕵️ True or False Questions:

1. Some customers are pleased with the company’s involvement in political matters.
2. Starbucks recently raised their prices, which has caused some customers to get angry and boycott the company.
3. Starbucks is facing praise for supporting workers who want to form a union.
4. The company’s sales in the US have dropped by 3% due to the price increase and other issues.
5. Experts believe that Starbucks’ issues are more indicative of the company itself, rather than being representative of the overall economy.
6. To address their sales decline, Starbucks plans to introduce new items on their menu, improve their service speed, and offer more promotions.
7. The CEO of Starbucks, Laxman Narasimhan, denied that their sales have been disappointing and attributed it to people being cautious with their money and misinformation.
8. Starbucks is also trying to attract more customers to join their rewards program.
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 people mad at Starbucks and boycotting the company?
2. How much have Starbucks’ sales dropped in the US?
3. What is Starbucks’ CEO, Laxman Narasimhan, saying about their sales?
4. What is Starbucks planning to do to fix their sales?
5. Why do experts think Starbucks’ problems are more about the company itself rather than the whole economy?

Answers

🤔✅ Comprehension Question Answers:

1. Why are people boycotting Starbucks?
People are boycotting Starbucks because the company raised their prices and is cracking down on workers who want to form a union. Some customers are also upset with the company’s involvement in political issues.

2. How much have Starbucks’ sales dropped in the US?
Starbucks’ sales have dropped by 3% in the US.

3. Why are some customers upset with Starbucks?
Some customers are upset with Starbucks because of the company’s involvement in political issues and their crackdown on workers who want to form a union.

4. What reasons did the CEO of Starbucks give for the decrease in sales?
The CEO of Starbucks, Laxman Narasimhan, said that the decrease in sales is due to people being cautious with their money and misinformation spreading.

5. What steps is Starbucks taking to try and fix their sales problem?
Starbucks is planning to add new items to their menu, improve their service speed, increase promotions, and encourage more people to join their rewards program.

6. Are other fast-food places also experiencing a decrease in sales?
Yes, other fast-food places like McDonald’s and Burger King are also seeing their sales go down.

7. What are some of the criticisms that Starbucks has faced?
Starbucks has faced criticism for their stance on the Israel-Gaza conflict and for not supporting workers who want to form a union.

8. Why does Starbucks think the boycott and union dispute are happening?
Starbucks believes that the boycott and union dispute are happening because people have the wrong information. They are trying to address the issues with the union, but it is still impacting their sales.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) going
(2) prices
(3) caused
(4) happy
(5) sales
(6) money
(7) things
(8) trying
(9) worried
(10) seeing
(11) think
(12) company
(13) union
(14) people
(15) Chipotle
(16) problem
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. boycotting
Answer: (B) Refusing to buy or use something as a way to protest

2. cracking down
Answer: (H) Taking strong action to stop something

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

4. cautious
Answer: (K) Being careful to avoid risks

5. promotions
Answer: (E) Special deals or offers to attract customers

6. rewards
Answer: (D) Benefits given to customers for their loyalty

7. economy
Answer: (A) The system of money and trade in a country

8. pressure
Answer: (F) The feeling of being forced to do something

9. criticized
Answer: (C) Pointed out the faults or problems with something

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

11. dispute
Answer: (I) A disagreement or argument

12. experts
Answer: (L) People who have a lot of knowledge about a subject

13. e-coli
Answer: (M) A type of bacteria that can cause food poisoning

14. improvements
Answer: (J) Changes made to make something better

15. disappointing
Answer: (O) Not meeting expectations or hopes
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. Why are people upset with Starbucks?
Answer: (d) They raised their prices

2. How much have Starbucks’ sales dropped in the US?
Answer: (c) 3%

3. What is Starbucks doing to try and fix their sales?
Answer: (c) Adding new things to their menu

4. Why are people worried about Starbucks’ troubles?
Answer: (a) They are spending less money

5. What is the main reason experts think Starbucks is having problems?
Answer: (b) The company itself

6. What does Starbucks say is the reason for the boycott and the union dispute?
Answer: (d) People have the wrong information

7. What other fast-food places are also seeing their sales go down?
Answer: (a) McDonald’s and Burger King

8. What other company had a big problem with e-coli?
Answer: (b) Chipotle
Go back to questions ⇧

🕵️✅ True or False Answers:

1. Some customers are pleased with the company’s involvement in political matters. (Answer: False)
2. Starbucks recently raised their prices, which has caused some customers to get angry and boycott the company. (Answer: True)
3. Starbucks is facing praise for supporting workers who want to form a union. (Answer: False)
4. The company’s sales in the US have dropped by 3% due to the price increase and other issues. (Answer: True)
5. Experts believe that Starbucks’ issues are more indicative of the company itself, rather than being representative of the overall economy. (Answer: False)
6. To address their sales decline, Starbucks plans to introduce new items on their menu, improve their service speed, and offer more promotions. (Answer: True)
7. The CEO of Starbucks, Laxman Narasimhan, denied that their sales have been disappointing and attributed it to people being cautious with their money and misinformation. (Answer: False)
8. Starbucks is also trying to attract more customers to join their rewards program. (Answer: True)
Go back to questions ⇧

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