The following memorandum is from the business manager of Happy Pancake House restaurants.” Butter has now been replaced by margarine in Happy Pancake House restaurants throughout the southwestern United States. Only about 2 percent of customers have complained, indicating that an average of 98 people out of 100 are happy with the change. Furthermore, many servers have reported that a number of customers who ask for butter do not complain when they are given margarine instead. Clearly, either these customers cannot distinguish butter from margarine or they use the term ‘butter’ to refer to either butter or margarine. Thus, to avoid the expense of purchasing butter and to increase profitability, the Happy Pancake House should extend this cost-saving change to its restaurants in the southeast and northeast as well.”

The following memorandum is from the business manager of Happy Pancake House restaurants.

“Butter has now been replaced by margarine in Happy Pancake House restaurants throughout the southwestern United States. Only about 2 percent of customers have complained, indicating that an average of 98 people out of 100 are happy with the change. Furthermore, many servers have reported that a number of customers who ask for butter do not complain when they are given margarine instead. Clearly, either these customers cannot distinguish butter from margarine or they use the term ‘butter’ to refer to either butter or margarine. Thus, to avoid the expense of purchasing butter and to increase profitability, the Happy Pancake House should extend this cost-saving change to its restaurants in the southeast and northeast as well.”

Write a response in which you discuss what specific evidence is needed to evaluate the argument and explain how the evidence would weaken or strengthen the argument.

The business manager of Happy Pancake House assumes that he has found the perfect recipe for making his business more profitable. He observes that by replacing butter with butter-flavored margarine, Happy Pancake House has eliminated waste. His claim that butter has now been replaced by butter flavored margarine in Happy Pancake House restaurants throughout the southwestern United States is based on hearsay. One can only assume that Happy Pancake House has either been around since the late 19th century or, more likely, that the business manager has read about it or seen an advertisement. It would be unlikely that the company’s customers would know which of the restaurant’s foods contained butter, and the manager’s assertion that 98 out of 100 people are satisfied provides no insight into what these customers are thinking. Furthermore, if the manager claims that some customers ask for butter when they really mean margarine, then the manager himself does not know which customers he is referring to. It is natural for people to substitute products they have used before with new products. In this case, customers may be asking for margarine when they actually want butter. Because of this, managers cannot assume that customers’ requests are genuine. It would be wise for the manager to ask the managers of Happy Pancake House restaurants in the area whether the butter-flavored margarine is replacing butter. If he finds that customers are not asking for butter, he can consider offering butter to some of his customers. If he finds that customers are asking for butter, he can consider offering them butter flavored margarine. Given the manager’s limited knowledge, it would be unwise for him to assume that the customers’ requests are genuine.

The business manager has overlooked the fact that Happy Pancake House employees may be unaware of the changes. Even if they know which foods contain butter, they may not know which foods contain butter flavored margarine. This ignorance could result in complaints from customers, which the business manager may not have anticipated. He should require a meeting with the managers of the restaurants in the area and request a list of which foods contain butter flavored margarine. If the employees of the Happy Pancake House restaurants are ignorant, the manager should provide them with training on the differences between butter flavored margarine and butter.

The business manager is assuming that the customers’ loss of butter will not have a negative impact on the business. If customers do not complain about the loss of butter, then the manager has not taken into account that customers may be angry or disappointed. If the customers’ loss of butter causes them to cancel their Happy Pancake House dinner plans, the restaurants in the area will experience a decrease in revenue. The manager could make his restaurants more inviting by offering more food at a lower price. Managers who fail to recognize the relationship between business profitability and customer satisfaction often fail to see the losses that result from their decisions.