McDonald’s leans on AI to price Big Macs

The article reports that McDonald’s pricing engine relies on machine-learning algorithms to continually analyze data from millions of daily transactions across nearly 14,000 restaurants. That system is being used to shape menu prices in the U.S. and some global markets, with one factor being an estimate of how much each store’s patrons are willing to pay.

The details of how the pricing system works, its extensive use of AI, the company’s regulatory concerns and tensions with its franchisees had not been previously reported, the article says. It adds that screenshots of the pricing engine taken in August were reviewed and that nine sources with firsthand knowledge of the strategy were interviewed.

The stakes appear to hinge on how franchisees and regulators respond, since the article frames the plan as aiming to boost headquarters’ profit while risking customer alienation and antitrust scrutiny. How those tensions are managed is likely to shape how far the system spreads.