McDonald’s is deploying an AI-based pricing platform that recommends menu prices for individual restaurants in the US and some international markets. The system analyzes millions of transactions and factors in estimates of what customers in a given area may be willing to pay, potentially widening price differences between nearby locations.
In Fresno, California, Reuters found that the price of the same Big Mac differed by 21% at two restaurants roughly 2 miles apart. The report could not confirm whether the gap was directly caused by the algorithm’s recommendations.
McDonald’s says the platform provides recommendations rather than setting prices automatically, with franchisees retaining the final decision. However, five restaurant owners interviewed by Reuters said they faced pressure to use the tools, and that the company tracks departures from recommended pricing.
Pricing algorithms carry particular scrutiny because they can influence what customers pay at a local level. McDonald’s franchisee portal reportedly cautions operators to comply with antitrust laws, while the company continues to maintain that franchisees determine the final prices. The key unresolved question is how much influence the recommendations exert when operators choose whether to diverge from them.
