McDonald's is using AI to set burger prices in the US and some other countries. The company says franchisees can set their own prices, but store owners interviewed by Reuters say that, in practice, the corporation is pushing AI prices on them.
"You don't really have much of a choice anymore," says former franchisee Karen King.
The algorithms estimate how much customers at a specific location are willing to pay, based on transaction data and competitor prices. According to franchisees, this has made prices vary more even within the same area: in one example cited by Reuters, the difference reaches 21% between restaurants two miles apart.
๐ McDonald's calls the claims that it forces AI prices on franchisees speculation. At the same time, in recent months the algorithm has increasingly advised holding prices steady or even lowering them, and this is reportedly what frustrates franchisees, whose costs are rising and profits are falling.
Is this fair businessโฆ
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