McDonald’s Deploys AI for Dynamic Menu Pricing Amid Franchisee Friction

McDonald’s is expanding the use of artificial intelligence to recommend menu prices across its U.S. locations by analyzing transaction data and competitor pricing to estimate customer price sensitivity. While the company maintains that franchisees retain final pricing authority, a Reuters investigation reports that some operators feel pressured to follow the AI-generated suggestions. The system aims to optimize sales and profitability, though it has created tension between the corporation and franchise owners, as the algorithm can lead to significant price variations even between nearby locations.