McDonald's AI Pricing System Sparks Price Gaps Between Stores

McDonald's has implemented an artificial intelligence (AI) pricing system that recommends different menu prices for individual restaurants. The company uses AI and machine learning to analyze millions of daily transactions from over 14,000 US restaurants and propose an 'optimal price' for each item.

The system takes into account local customers' willingness to pay and factors in publicly posted menu prices at nearby competitors. However, this has led to varying prices between stores. A check on the McDonald's app revealed that two company-operated restaurants in Fresno, California, listed the Big Mac at $5.69 (about 7,700 won) and $6.89 (about 9,400 won), a difference of roughly 21% for the same product.

Franchisees have expressed frustration with the system, stating that it pressured them into using AI pricing recommendations. Some operators said the system recommended steep price increases during inflationary periods, while more recently, it suggested lowering prices on some items or scaling back increases, adding to their burden.