Inside McDonald’s push to have AI price your Big Mac
MCD•McDonald’s is using AI to recommend menu prices across nearly 14,000 U.S. and global restaurants, with the system assessing customer willingness to pay and widening price differences among stores. The company says franchisees remain free to set final prices, while some owners say they face pressure to use the tools.
1. AI guides restaurant prices
McDonald’s pricing engine analyzes millions of daily transactions and recommends prices for menu items at each location. Screenshots reviewed by Reuters show it assessing “customer willingness to pay” and comparing nearby competitors’ online prices. In September, the McDonald’s app listed a Big Mac at $5.69 at one Fresno restaurant and $6.89 at another two miles away; Reuters could not confirm the engine caused the difference.
2. Franchisee pressure and risks
McDonald’s says its pricing portal is a tool, not a mandate, and franchisees are free to set final prices. Five owners told Reuters the company pressured them to use the tools, and company documents track departures from recommendations. McDonald’s says pricing non-compliance can be part of franchisee business reviews; the portal also warns owners to follow antitrust laws because they may be competitors.
3. Pricing rules and context
Two former Tiger Analytics employees said McDonald’s provided rules and targets for the system, including limits on certain price increases and excluding ice creams and drinks from summer increases. The company has used some form of AI pricing tool since at least 2019. McDonald’s said the engine supports its affordability strategy, while franchisees have cited rising operating costs.
