McDonald's Uses AI to Set Menu Prices in Some US Markets

McDonald's is increasingly relying on artificial intelligence to set menu prices in the US and some international markets. According to Reuters, the company uses a pricing engine that incorporates machine-learning algorithms to analyze millions of daily transactions and recommend prices for each restaurant.

The system takes into account an estimate of how much customers in the area are willing to pay, which can lead to varying price recommendations between nearby locations. In some cases, this has resulted in price differences of up to 21% for identical products within the same neighborhood.

A Reuters investigation found that a company-operated McDonald's in Fresno, California charged $5.69 for a Big Mac, while another location two miles away charged $6.89. The platform also considers publicly available prices from nearby competitors' online menus, including Wendy's and Burger King.

While McDonald's claims that franchisees remain free to set their own prices, several store owners told Reuters that the company pressured them to use AI pricing tools. Since January, the company has required franchisees to engage with approved pricing consultants and tools as part of its business standards.