McDonald's is deploying AI to set prices dynamically across nearly 14,000 US locations, adjusting costs based on local demand and customer willingness to pay. The system analyzes millions of daily transactions to optimize pricing in real time.
Price variations can reach 21% for the same item—a Big Mac might cost $5.69 at one location and $6.89 at another just 3 kilometers away. While it's unclear whether AI directly drives all observed differences, the dynamic pricing model is clearly shifting how the chain manages revenue.
Franchise owners report facing pressure to adopt the technology and say McDonald's monitors their pricing decisions, flagging instances where their choices diverge from the system's recommendations. This level of oversight has raised concerns among franchisees about autonomy and the shift toward algorithmic decision-making in their businesses.