"How much will you pay for a Big Mac? McDonald's brings AI into pricing"

A Reuters investigation reveals McDonald's secret pricing engine, which uses artificial intelligence to determine optimal prices at each branch. The system analyzes millions of daily transactions and creates price gaps of tens of percent between nearby branches. The company pressures franchisees to use the tool, amid regulatory concerns and tension with store owners.

A Reuters investigation reveals the secret pricing engine of the McDonald's chain, which uses artificial intelligence to guide menu pricing in the US and other markets. The system, based on machine learning algorithms, continuously analyzes data from millions of daily transactions across approximately 14,000 restaurants, generating an "optimal price" for each item at each branch – from the Big Mac to subsidized coffee for senior citizens. The investigation reveals significant price gaps between nearby branches. For example, a branch in Fresno, California sells a Big Mac for $5.69, while another branch three kilometers away charges $6.89 – a 21% gap. The system also draws information from online menus of competitors like Wendy's and Burger King. The company claims franchisees are free to set prices, but five store owners testified to pressure to use the tool. An internal document shows the company tracks deviations from recommendations. Since last January, McDonald's requires franchisees to cooperate with its pricing advisors as part of new business standards. The use of algorithms raises regulatory concerns about price coordination, though experts are divided on the question of legal exposure.