McDonald's is using AI to help stores set prices for burgers and other menu items, according to a Reuters investigation.
Reuters reported that the company's pricing engine continuously analyzes millions of daily transactions across nearly 14,000 U.S. restaurants. It also reviews publicly available prices from nearby competitors such as Wendy's and Burger King, estimates what local customers are willing to pay, and produces what the report described as an "optimal price" recommendation for each item at each store. The system has also been used in some overseas markets.
Price gaps between nearby stores
Reuters said the AI recommendations can widen pricing differences that already exist between locations. In Fresno, California, the news agency found that two McDonald's stores about 3.2 kilometers apart were charging $5.69 and $6.89 for the same Big Mac, a 21% difference.
Reuters said it could not confirm whether that specific gap was directly caused by the AI system's recommendations.
Not real-time surge pricing
The report said the system does not work like Uber by changing prices constantly based on real-time demand. Instead, the AI keeps analyzing sales and competitor data, then periodically provides pricing suggestions to individual stores. Final pricing decisions still rest with franchisees.
The recommendations do not always point to higher prices. Reuters said some items were instead given suggested price cuts in recent months.
Franchisees keep final say, but deviations are tracked
McDonald's said the tool is only a reference. Even so, five franchisees told Reuters that the company keeps detailed records of whether they depart from suggested prices.
Starting this year, franchisees have also been required to "actively cooperate" with McDonald's-approved pricing consultants and tools, and that requirement has been written into new business standards.