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McDonald’s Uses AI to Recommend Different Menu Prices by Location

Screenshots and franchisee interviews show the tool factors local ‘willingness to pay,’ prompting regulators to examine algorithmic pricing.

Overview

  • Reporting published Sept. 29–30 reviewed screenshots of a pricing portal that uses machine-learning models and millions of transactions to generate restaurant-level “optimal price” recommendations.
  • The tool labels outlets with sensitivity scores such as “MEDIUM SENSITIVITY to Price” and explicitly includes estimates of local customer willingness to pay.
  • Franchisees retain formal price-setting authority, but multiple owners said they felt pressure to follow recommendations and McDonald’s records stores that deviate from suggested prices.
  • Independent checks found visible price gaps at nearby locations, including Big Mac differences of roughly $1 to $1.20 in Fresno, California, that customers noticed on the company app.
  • The platform pulls competitor menu data and is run with outside analytics help; its use raises antitrust and consumer-fairness questions and could trigger further regulatory and legal scrutiny.