McDonald's uses AI to set optimal prices at nearly 14,000 restaurants

Reuters reports McDonald's uses an AI pricing engine from Tiger Analytics to recommend prices for every menu item at nearly 14,000 restaurants in the US and some overseas markets. The system analyzes millions of daily transactions and estimates customer willingness to pay, while franchisees complain of pressure and widening price gaps.

• The engine covers nearly 14,000 McDonald's restaurants in the US and some foreign markets
• A Big Mac at two Fresno stores cost $5.69 and $6.89, a 21% gap
• The platform also pulls prices from nearby Wendy's and Burger King online menus
• Since January, McDonald's standards require franchisees to engage with approved pricing tools