McDonald's is using AI-driven pricing tools that suggest menu prices, including for the Big Mac, according to reports from multiple outlets. The tools reportedly factor in local conditions such as customers' willingness to pay in a given area.
According to the New York Post, franchisees said the algorithm has widened the gap between prices for identical items at different restaurants within the same neighborhoods.
The Independent Journal Review reported a specific example: a Big Mac cost $5.69 at one Fresno, California McDonald's location and $6.89 at another location two miles away.
Coverage of the pricing tools spanned outlets across the political spectrum, with several framing the story around the idea of AI setting or influencing fast-food prices.
How each side covered it
Left
- The Verge and Engadget both raised the question of AI influencing Big Mac pricing.
- Engadget noted customer reaction to McDonald's food and pricing practices as 'leaving a bad taste.'
“McDonald's is reportedly using AI to "dynamically" price its burgers” — Engadget
Center
- CNBC and Reuters both reported on McDonald's broader push to use AI to price the Big Mac.
- Coverage centered on the mechanics of McDonald's AI pricing initiative.
“Inside McDonald's push to have AI price your Big Mac” — CNBC
Right
- The New York Post reported franchisees said the algorithm widened price gaps between identical items at nearby locations.
- The Independent Journal Review cited a specific example of a $1.20 price difference for a Big Mac between two Fresno locations two miles apart.
- The Daily Caller framed the story around McDonald's using a new method to determine what customers will pay.
“Franchisees said the algorithm has widened the gap between prices on identical items at various restaurants within the same neighborhoods, according to a report.” — New York Post
Questions readers ask
What did McDonald's reportedly do with AI pricing?
McDonald's is reportedly using AI tools that suggest or 'dynamically' set menu prices, including for the Big Mac, based on factors like local customer willingness to pay, according to multiple outlets.
How much did Big Mac prices vary by location?
According to the Independent Journal Review, a Big Mac cost $5.69 at one Fresno, California McDonald's and $6.89 at another location just two miles away.
Why are franchisees concerned about the AI pricing tool?
The New York Post reported that franchisees said the algorithm has widened the gap between prices for identical menu items at different restaurants within the same neighborhoods.
What did left- and right-leaning outlets focus on?
Left-leaning outlets like The Verge and Engadget focused on the broader question of AI influencing fast-food prices and customer reaction, while right-leaning outlets such as the New York Post and Independent Journal Review emphasized franchisee concerns and specific location-based price differences.
Sources · 8 outlet reports
- EngadgetLeft-leaningMcDonald's is reportedly using AI to "dynamically" price its burgers
- The VergeLeft-leaningIs AI pricing your Big Mac?
- CNACenterInside McDonald’s push to have AI price your Big Mac
- CNBCCenterInside McDonald’s push to have AI price your Big Mac
- ReutersCenterInside McDonald’s push to have AI price your Big Mac
- Independent Journal ReviewRight-leaningMcDonald’s AI tool suggests varying Big Mac prices by location
- New York PostRight-leaningMcDonald's pushes AI tools that suggest Big Mac prices based on 'customer willingness to pay'
- The Daily CallerRight-leaningMcDonald’s Has New Way To Figure Out How Much You Will Pay For Its Food