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McDonald’s using AI to price burgers? Same Big Mac can cost more nearby
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Mint: AI

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IndiaMint: AI

McDonald’s using AI to price burgers? Same Big Mac can cost more nearby

McDonald’s is reportedly using AI to recommend menu prices based on customer willingness to pay at individual restaurants. The system can lead to different prices for the same Big Mac at nearby outlets, raising concerns among franchisees and legal experts.

McDonald’s is reportedly using artificial intelligence to recommend different prices for the same menu items at its restaurants in the US and some global markets, according to a Reuters report published on September 30, 2026. The system will process customers' willingness to pay in a given area and recommend the company's “optimal price” for each restaurant. This means customers in the same city could pay different prices for the same burger.

The pricing system is being used through a portal available to McDonald’s franchisees. The tool can analyse the price elasticity of a restaurant's customer base and suggest a price several times a year, Reuters reported. McDonald's states that franchisees can still determine final prices and that it's a business decision-making tool, not a rigid pricing tactic.

AI recommendations can create major price gaps

Reuters checked the pricing data and found that restaurants in the immediate vicinity varied widely in price. For instance, a Big Mac in Fresno, California, sold for $5.69 at one outlet and $6.89 at another two miles away.

The system reportedly shows a message that indicates a restaurant's “price sensitivity” by how much customers are willing to pay. These recommendations have been embraced by some franchisees, who told Reuters that McDonald's has urged them to adopt them, although the company said final pricing decisions would be left to individual operators.

The McDonald's internal communication, reviewed by Reuters, apparently requires franchisees to use approved pricing consultants and tools. Company documents also show that McDonald's monitors adherence to its pricing suggestions at restaurants.

Pragya Singha Roy

Original source

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