McDonald's AI pricing system sparks controversy in the US as franchisees face pressure to accept algorithm-driven prices

McDonald's is increasingly using AI to set menu prices in the US and some overseas markets, according to Reuters. The pricing engine uses machine learning to analyze millions of daily transactions across nearly 14,000 US stores, generating an "optimal price" for every item at every location. Three franchisees said the system has widened price gaps for the same product between stores, even those just a few blocks apart.

McDonald's says franchisees can set their own prices, but five store operators said the company pressures them to use the AI pricing tool. Internal documents show franchisees must "actively cooperate" with approved pricing consultants and tools. McDonald's works closely with data firm Tiger Analytics, and the company influences the pricing engine's output.

Some franchisees said headquarters staff call them when store prices deviate from the system's suggestions. The pricing platform's terms warn that using the tool may trigger antitrust scrutiny. McDonald's says the tool is "a suggestion, not a mandate," and denies any anti-competitive conduct.