McDonald's Secretly Uses AI Models to Set Menu Prices Across 14,000 US Restaurants
Reuters found that McDonald's uses AI models to set "optimal" menu prices at nearly 14,000 US restaurants, analyzing millions of daily transactions. Big Mac prices differ by 21% between stores two miles apart: $5.69 versus $6.89. Franchisees say they face pressure to comply, while corporate tracks "pricing non-compliance."
- AI analyzes millions of daily transactions to generate an "optimal price" for each menu item
- Big Mac prices differ 21% between stores two miles apart: $5.69 vs $6.89
- Corporate sends pricing guidance at least three times a year and tracks compliance
- McDonald's built the system with Tiger Analytics, setting targets like raising prices on items unchanged for two years
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