🍟 McDonald’s AI Suggests Local Big Mac Prices

In Fresno, a Big Mac costs $5.69 at one McDonald’s and $6.89 at another 2 miles away. That is a 21% gap, linked by Reuters to the chain’s AI pricing system.

The system seeks an “optimal price” for each US restaurant and some overseas markets, based on local customers’ willingness to pay. Franchisees see prompts about price sensitivity. McDonald’s tracks deviations and sends suggestions at least 3 times a year.

Owners formally set the price, but some told Reuters that deviations can trigger calls from headquarters. New franchise standards require them to “constructively engage” with approved pricing tools.

📊@tech