McDonald’s uses AI to recommend menu prices in the US

McDonald’s is utilizing machine-learning algorithms to provide pricing recommendations for its nearly 14,000 restaurants in the United States and some international markets. The AI system analyzes millions of daily transactions, competitor pricing from chains like Wendy’s and Burger King, and local consumer demand to suggest “optimal” prices.

Investigations have revealed significant price discrepancies resulting from these recommendations. In Fresno, California, a Big Mac was found to cost $5.69 at one location and $6.89 at another just two miles away, a difference of approximately 21%. The system reportedly evaluates local “willingness to pay” and price sensitivity.

While McDonald’s maintains that the AI is merely a “tool” and that franchisees independently set final prices, several owners report significant corporate pressure to follow the algorithmic suggestions. Some franchisees have expressed concerns that the system impacts their business sustainability, particularly when it recommends lower prices that reduce overall revenue from which the corporation takes a percentage.