Play some RPGs!

Role playing is an excellent way to get students talking about real-life scenarios. You'll need to prepare cards with scenarios written on them - for example, buying a car at a Toyota dealer, looking for an apt, shopping at Valley fair, ordering food, ordering coffee at Starbucks. Then, the group can act out the situation together.

If you have a mixed level group, you can have the advanced students do more of the talking - for example, they can be a store clerk and the others can be customers.