McDonald’s uses AI pricing engine to recommend store-specific menu prices

McDonald’s is using an AI pricing engine to recommend what each of its nearly 14,000 restaurants should charge for every menu item, Reuters reported on Tuesday. The engine covers the US and some markets abroad. One factor the engine weighs is an estimate of how much each store’s customers are willing to pay. Waylon Cunningham […] This story continues at The Next Web

"BigMacGPT": McDonald's Uses AI To Figure Out How Much Your Next Burger Will Cost Depending On Location One week after McDonald's held its investor day at its Chicago headquarters, Wall Street has soured on a near-term turnaround effort, with Deutsche Bank analysts saying it has effectively been delayed.  Now, a new report says the quick-service restaurant chain behind the Big Mac is rapidly expanding its use of artificial intelligence to recommend menu prices based partly on what customers in each restaurant's area are willing to pay. Reuters details exactly how and what AI expansion at the QSR means for customers: The details of how that pricing system works, its extensive use of AI, the company's regulatory concerns and the tensions with its franchisees haven't been previously reported. For this story, Reuters reviewed screenshots of the company pricing engine taken in August and interviewed nine sources with first-hand knowledge of the burger chain's strategy. McDonald's pricing engine uses machine-learning algorithms to continually analyze data from millions of daily transactions across McDonald's nearly 14,000 restaurants and generate what the company calls "the optimal price" at each location for each menu item, from Big Macs ‌to discounted coffee for seniors. The engine has widened existing price differences for the same product between restaurants, including from neighborhood to neighborhood within the same area, three franchisees told Reuters. Screenshots of the interface franchisees use, reviewed by Reuters, show messages including: "Your restaurant is showing MEDIUM SENSITIVITY to Price" based in part on "customer willingness to pay in your area." The platform also contains public price information pulled from online menus of nearby restaurants of competitors including Wendy's and Burger King. Those chains said they do not use AI in pricing decisions. McDonald’s is using artificial intelligence to help set menu prices across the US and some global markets, a plan that aims to boost profit but risks alienating customers and attracting antitrust scrutiny https://t.co/FI5dBN4luP pic.twitter.com/D1Rd1RMGJf — Reuters (@Reuters) September 29, 2026 McDonald's pricing engine is operated by Tiger Analytics and follows corporate parameters as well as transaction data, the outlet said, citing former employees. Those parameters have included avoiding summer price increases on ice cream and drinks and targeting items whose prices have remained unchanged for at least two years. The bet on using AI appears part of a major overhaul the burger chain is making as a way to regain marketshare in the QSR space and continue its affordability war with competitors. However, there is a collision because customers want cheaper meals, franchisees face higher costs, and management wants to squeeze every restaurant to boost revenue to drive the stock price higher.  "It's in the interest of the company to know where there's (customer) demand and to get that feedback in real time," said Brooklyn resident Diane Bezucha. But if that AI engine is used to raise prices simply because of more demand, "that doesn't really help me as a customer." The other question is whether McDonald's pricing engine can determine each customer's economic status and generate different prices on a customer-by-customer basis. This all comes as the stock has slid to a four-year low, with shares on track for their worst annual performance since 2002. Deutsche Bank's Lauren Silberman warned last week, shortly after Investor Day, that any turnaround inflection point for the QSR behind the Big Mac has been delayed Tyler Durden Wed, 09/30/2026 - 12:20

McDonald's is reportedly using AI-powered pricing tools to recommend menu prices based on what customers near individual restaurants are willing to pay. Franchisees technically retain control over final prices, but some told Reuters they feel pressured to follow the algorithm's recommendations. "A corporate document reviewed by the publication shows that McDonald's tracks adherence to the platform, and notes any deviations from the algorithm's price recommendations," reports Engadget. From the report: Reuters got a look at the interface that franchisees use to access this technology and it's pretty creepy. Messages show stuff like "your restaurant is showing MEDIUM SENSITIVITY to price" based on "customer willingness to pay in your area." Cost differences at nearby locations can be stark. Researchers found that a Bic Mac at a Fresno, California store cost $5.69, but the same burger cost $6.89 at another branch two miles down the road. That's a 21 percent difference. The company acknowledges that using this dynamic pricing system could open up franchisees to legal hurdles, all while continuing to push the platform. The pricing portal's terms of service reportedly warns that owners "may be competitors of each other" and "it is particularly important for all Users of the Tool to understand and comply fully with antitrust and competition laws." The document also reiterates that franchisees are "always free to determine the final price," thus potentially absolving corporate from any antitrust concerns. McDonald's has decried Reuters' reporting as "speculative and uninformed." The company says the pricing portal is "a tool, not a mandate, designed to provide restaurant-specific recommendations to help franchisees deliver value for customers and make informed business decisions." The company has been using some version of this technology since at least 2019, according to Reuters. In 2023, however, CEO Kempczinski boasted to investors that it had developed proprietary tools to evaluate pricing at individual restaurants. Read more of this story at Slashdot.