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McDonald's uses AI to decide how much to charge for Big Mac by location
Posted on 10/2/26 at 10:02 am
Posted on 10/2/26 at 10:02 am
quote:
A recent extensive report sheds light on one area where the fast-food giant has had a long and potentially lucrative history with machine learning and algorithms: dynamic pricing.
Several sources, including store owners, recently explained to Reuters how McDonald's encourages and sometimes pressures restaurants to set prices according to an AI algorithm. The outlet also viewed screenshots of an AI pricing tool taken in August.
The system aims to determine how much customers are willing to pay by reviewing data from millions of transactions across the fast-food chain's nearly 14,000 restaurants, as well as prices from online menus at nearby rival chains such as Wendy's. The tool might warn a franchise owner that their restaurants are exhibiting "medium sensitivity" to prices based on local customers' "willingness to pay."
https://www.techspot.com/news/114053-mcdonald-using-ai-decide-how-much-you-pay.html
quote:
Although store owners can set prices with or without AI based on local costs, the algorithm might widen disparities even between nearby restaurants. For example, a company-run McDonald's in Fresno, California, might sell Big Macs for $5.69, while another restaurant just two miles away might charge $6.89 – 21% more.
Posted on 10/2/26 at 10:12 am to Shexter
I love this. More affluent areas need to pay more than lower income areas.
Posted on 10/2/26 at 10:13 am to Paul Allen
quote:
Paul Allen
Posted on 10/2/26 at 10:13 am to Shexter
That revelation should really help their business out of the jam its in.
Their burgers suck so getting gouged by them doesn't affect me. Unfortunately plenty of large corporations are on board with dynamic pricing. I mean who doesn't like extra revenue for doing nothing and adding no value to the product.
Their burgers suck so getting gouged by them doesn't affect me. Unfortunately plenty of large corporations are on board with dynamic pricing. I mean who doesn't like extra revenue for doing nothing and adding no value to the product.
Posted on 10/2/26 at 10:18 am to Shexter
That’s fine. Let the Free Market reign supreme. If it’s too expensive, people will stop going there and the store will fail. I rarely go to McD’s and when I do I will gladly pay a $1 more to visit a clean and efficient restaurant with polite workers.
Other people may choose to save $1 by going to the ghetto store. That’s fine by me.
Other people may choose to save $1 by going to the ghetto store. That’s fine by me.
Posted on 10/2/26 at 10:18 am to Shexter
On one hand this seems shitty, but on the other hand this is exactly how humans have always attempted to set prices. They try to set the price where it will maximize revenue.
The only difference is now there is a machine that can figure out the sweet spot for pricing way better than humans can.
The only difference is now there is a machine that can figure out the sweet spot for pricing way better than humans can.
Posted on 10/2/26 at 10:18 am to Shexter
This is because I’m white isn’t it? Racist fricks.
Posted on 10/2/26 at 10:40 am to ezride25
quote:
This is because I’m white isn’t it?
BINGO!
Posted on 10/2/26 at 10:42 am to Shexter
I use my scale to decide never to buy anything from McDonalds.
Posted on 10/2/26 at 10:44 am to Shexter
Setting the O/U number for posts stating "I haven't eaten at a McDonald's in ____ years" at 5.5.
Posted on 10/2/26 at 10:58 am to BWHLSU
quote:
Setting the O/U number for posts stating "I haven't eaten at a McDonald's in ____ years" at 5.5.
I'll take the over!
Posted on 10/2/26 at 11:00 am to jbgleason
quote:
I will gladly pay a $1 more to visit a clean and efficient restaurant with polite workers.
Literally the selling point for Canes and CFA vs Popeyes
Posted on 10/2/26 at 11:01 am to Shexter
wait until you get charged $2000 for a coach flight from (inset Texas city) back to Louisiana for a funeral or emergency
we are so fricked
we are so fricked
Posted on 10/2/26 at 11:05 am to armytiger96
I’ve never eaten a Big Mac in my life.Might have eaten a Quarter Pounder once.
I always liked the Fish Sandwiches,I still get one about once a year.I’m pretty sure they’re a lot smaller than they used to be.
I always liked the Fish Sandwiches,I still get one about once a year.I’m pretty sure they’re a lot smaller than they used to be.
Posted on 10/2/26 at 11:25 am to Shexter
McDonalds close to the house uses AI to take orders, I don't trade with them often but I have a few times since it started and the order is correct and the lines are faster by a bunch.
Posted on 10/2/26 at 11:27 am to Shexter
I’d gladly pay more if I could get good service, clean place that I don’t feel like I’ll get kilt, and quality food that’s not only does not include spit, but is fresh and well prepared and absolutely no food poisoning. Can’t even order a Diet Coke without difficulties and the worker pissed bc she ain’t makin $25 per/hour.
This post was edited on 10/2/26 at 11:28 am
Posted on 10/2/26 at 11:27 am to Paul Allen
another terrible take Paul. one of many.
Posted on 10/2/26 at 11:36 am to Paul Allen
quote:
I love this. More affluent areas need to pay more than lower income areas.
Posted on 10/2/26 at 11:44 am to LSUA 75
quote:Everything I've ever read says McFish are the slowest selling and often sit well past a shift change.
I always liked the Fish Sandwiches
Posted on 10/2/26 at 11:44 am to StanSmith
quote:How would one be getting "gouged"? You don't have to buy a Big Mac.
so getting gouged by them doesn't
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