A new report from Reuters, published on September 29, claims that McDonald’s is deploying an AI-powered pricing engine that analyzes data from millions of transactions across thousands of restaurants to determine an “optimal price” for menu items at each location, a system that has reportedly led to outlets just miles apart charging vastly different prices for the same burger.
According to the report, the pricing tool examines factors such as customer willingness to pay in a given area to set location-specific prices. Reuters spoke with multiple franchise owners and reviewed screenshots of the engine itself. In those screenshots, the outlet identified messages indicating that certain McDonald’s locations were labeled “MEDIUM SENSITIVITY to Price,” a designation tied to “customer willingness to pay in your area.” To test the real-world impact, Reuters compared prices at two corporate-owned stores in California located just two miles from each other and found that one was selling a Big Mac for $5.69 while the other charged $6.89 for the identical sandwich.
A Pricing System That Has Evolved Since 2019
McDonald’s has used some form of algorithm-powered pricing systems since 2019, but the company says it has recently pushed harder to get all locations to adopt the newer AI-driven tools. The fast-food giant told Reuters that franchise owners remain free to set their own prices and dismissed the report as inaccurate and uninformed about how the business actually operates. Still, the evidence gathered by the outlet suggests a more coordinated push toward standardized, algorithm-driven pricing than the company publicly acknowledges.
McDonald’s maintains that franchise owners are free to set their own prices, and it characterized the report as inaccurate and uninformed.
McDonald’s, per Reuters
Five store owners told Reuters that they felt pressured to use the AI-pricing tools, and the company reportedly keeps track of stores that deviate from its recommended pricing. This dynamic has occasionally sparked tension between franchise owners and McDonald’s corporate headquarters, though not always over the direction of prices. Several owners have pushed back against reports that McDonald’s wants lower prices set on cheaper-to-make items in an effort to draw customers through the door.
New Rules and Legal Gray Areas
The pressure to comply appears to have formalized in recent months. In January, McDonald’s reportedly began requiring franchise owners to begin “constructively engaging with McDonald’s approved Pricing Consultant and Tools” as part of new rules and standards. Yet the company is reportedly aware that AI-powered pricing systems are not only a public relations liability but could also be breaking the law.
At some locations, neighboring McDonald’s franchises are considered competitors under antitrust rules, and owners could face legal trouble if they begin adjusting prices as part of a larger coordinated effort with nearby stores. McDonald’s is said to be well aware of this risk. Reuters reports that the pricing engine software itself contains a message to owners noting that they “may be competitors,” advising them to consult their own lawyers about any legal issues or concerns.
You May Also Like
Ubisoft has lovingly named its GenAI gaming initiative “Motherbrain,” while the Assassin’s Creed maker is reportedly trying to trademark a nod to Nintendo’s Metroid series. Meanwhile, McDonald’s is bringing back Pokémon Happy Meals, with the annual event expected to start in a couple of months and long lines to follow.
In gaming news, a major tabletop convention has banned AI with few exceptions, as UKGE refuses to embrace the unpopular technology. Insomniac also confirmed that its Wolverine game does not contain AI-generated assets after a strange-looking sign went viral, attributing the glitch to an in-game error rather than AI-generated material.
Looking Ahead
As the story develops, the relationship between McDonald’s corporate and its franchise owners will likely come under increased scrutiny, particularly around how pricing decisions are made and enforced. Whether the company softens its stance, clarifies its tools, or faces further regulatory questions remains to be seen. Owners and customers alike will be watching closely to see whether the “optimal price” for a Big Mac keeps shifting—and whether it lands differently depending on which side of the street you’re standing on.
Join the conversation