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submitted 18 hours ago* (last edited 18 hours ago) by spaghettiwestern@sh.itjust.works to c/technology@lemmy.world

McDonald's has been using artificial intelligence to dynamically price menu items in the US and some global markets, according to a report by Reuters. This involves finding the "optimal price" to match what a particular store's patrons would be willing to pay.

This fluctuates according to location, and even stores in the same city can have different cost amounts for the same exact items, according to information reviewed by Reuters. This is basically surge pricing, like with ride-share platforms, but for hockey puck burgers that have been sitting under a hot lamp.

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.

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[-] Buffalobuffalo@reddthat.com 1 points 55 seconds ago

Pricing the items based on the specific customer is sketchy. A franchise working with a franchisee on the most profitable pricing model is what they are supposed to do. At best this is either a nothing burger of an article, at worst it hides the fact that some places are tracking customers and adjusting prices per person. Which is shit.

[-] Smaile@lemmy.ca 5 points 1 hour ago

How do I manipulate it to lowball

[-] PumaStoleMyBluff@lemmy.world 3 points 1 hour ago

Start stealing burgers so they know you're not willing to pay the current price

[-] Kaligalis@lemmy.world 9 points 2 hours ago

I don't buy McDonal's because the price/value equation is off. Whether it is off because they think I'm rich or because they think I'm addicted doesn't really matter. The result is that I just don't buy.
But if I was a regular customer, I would see unstable prices as a negative because it means, I have to research current prices first before going there. That's inconvenient. I prefer reasonable and stable prices.

Maybe, McDonald's introduces haggling next so customers can feel like they are buying a used car when they buy a burger...

[-] Regrettable_incident@lemmy.world 7 points 2 hours ago

Not that I needed another reason to avoid McDonald's. Tastes nice, but the burgers have become tiny, and their food gives me the shits.

[-] Joelk111@lemmy.world 1 points 17 minutes ago

Does it taste nice? I quit fast food 3 years ago but of all the things they serve, I don't miss their burgers. Their fries and nuggets maybe, but I never want a McDonald's burger. They just aren't good at all, not by any metric.

[-] Zedd_Prophecy@lemmy.world 5 points 3 hours ago

Been 5 years since I ate my last Mc Crap. Not going back ever.

[-] GamingChairModel@lemmy.world 24 points 5 hours ago

When I'm bored, I get price quotes from Lyft and Uber to the airport. I'll click around and look at the different tiers of service. Then I choose not to actually request a fare, and close the app.

I fly enough to where both apps probably have me as a regular airport customer, but that I'm price sensitive enough where I just won't use their service sometimes.

I do the same with Doordash and other food apps, where I just put together potential orders to get a sense of how much something would cost if I ordered it, and then just never order it, letting that cart expire. I'm hoping this poisons their data or adds something to the price sensitivity metrics.

I also look at airfares, hotel prices, etc., a lot. It's not for the purpose of manipulating their algorithms, as I just like to get a sense for how prices move over time. But if there's a side effect that these variable pricing algorithms take into account people who window shop and walk away, maybe I'm helping push prices down.

If they're gonna create a panopticon, we should fuck with their data.

[-] Buddahriffic@lemmy.world 3 points 3 hours ago

Yeah, my first thought was that such a system was likely gameable.

But then my second thought was that idgaf what any of the McDonald burgers cost. The price they'd need to set to get me to "buy" them wouldn't be economically viable for the company because I have no clue how a "pay customers to take our burgers" scheme could work out favorably for them.

[-] Regrettable_incident@lemmy.world 1 points 2 hours ago

At least where I live, what they cost is 'way too much'. You can get a meal from a decent restaurant for the same price, and their burgers have shrunk considerably.

[-] WizardofFrobozz@lemmy.ca 53 points 6 hours ago

The bargain with fast food was that it was shitty for you, but it was quick, cheap, and tasted good. Now it’s even WORSE for you, costs as much as an actual meal, and increasingly tastes like garbage. What exactly are people trading off now?

[-] paultimate14@lemmy.world 27 points 5 hours ago

It isn't quick anymore either.

[-] mrgoosmoos@lemmy.ca 10 points 5 hours ago

there was ONE McDonald's that I used to still go to on road trips.

then the US threatened to take over my country, so ofc I stopped going to McDonald's. I tried to make an exception for it last year because I had to pee and I figured it would be the one place actually open at 1am for me to pee and get a coffee, but nope, closed. guess they want people to piss in the drive thru

McDonald's doesn't even offer washrooms anymore, they have literally nothing to offer me

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[-] Vex_Detrause@lemmy.ca 8 points 4 hours ago

A burger-fries-drink is the same cost as the most amazing local shawarma and drink or the freshest ban-mi from the local Vietnamese resto.

[-] rumba@lemmy.zip 13 points 6 hours ago

I keep being amazed when we go out once a month for a sit down dinner and it's only $5 more a head than fast food.

[-] Agent641@lemmy.world 3 points 5 hours ago

For the price of one decently sized McDonald's meal here in Australia (about $16) I can comfortably feed myself for a week of healthy, filling dinners, and maybe lunches too, using staple foods and in-season veg.

[-] cardboardboxfort@lemmy.world 3 points 5 hours ago

More reasons to not eat McDonalds. It sure seems like they are trying to shift from being a hamburger chain into full real estate company and are trying to sabotage their weaker franchises so they can cash out the properities PE style.

[-] frongt@lemmy.zip 2 points 4 hours ago

Every franchise is, and has been, a real estate company first.

[-] cardboardboxfort@lemmy.world 2 points 4 hours ago

No, corporate owns most of the stores property then leases that to franchise owners. If one wanted to liquidate some of the property they owned and downsize operations they'd have to kick out the franchise owners first.

[-] frongt@lemmy.zip 1 points 4 hours ago

McDonald's corporate is the franchise owner/franchisor. The franchisees lease and operate the stores.

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[-] aesthelete@lemmy.world 10 points 4 hours ago

There should be quotes around "burgers" in this headline as well IMO.

[-] tb_@lemmy.world 5 points 3 hours ago

The text is pretty good though:

[...] but for hockey puck burgers that have been sitting under a hot lamp.

[-] myyass@lemmy.world 1 points 2 hours ago

Why is it still referred to as a burger; it's a product, get it right.

[-] kent_eh@lemmy.ca 4 points 4 hours ago

even stores in the same city can have different cost amounts for the same exact items

That has been a thing for years.

A local guy did the legwork pre-covid to price check a list of items at every McD's in the city and found that there was a significant difference in price across the city.

The patterns he found were that franchisees were generally consistent across their own locations, and that the locations in the more affluent parts of the city tended to be more expensive.

The only real surprise was that corporate didn't mandate exact prices across an entire market area.

[-] DoucheBagMcSwag@lemmy.dbzer0.com 4 points 4 hours ago

How about McFuck Yourself

[-] FlashMobOfOne@lemmy.world 20 points 8 hours ago* (last edited 8 hours ago)

On the plus side, surveillance pricing legislation has already been introduced in (IIRC) four states just this year, and if I had to guess, we could eventually see state-level bans in at least half of the states.

This, like the electronic tags at Walmart, or Uber charging more when your phone battery is low, or Target mining your loyalty club data to surge price you, is something that they're speedrunning to try and normalize before the law catches up.

[-] dropdrip@lemmy.ml 11 points 8 hours ago

The issue is that these are black boxes. No one but the authors of the system know what's happening. Law prevents Uber from increasing the price on a nearly flat mobile-computer? They didn't. That's just the normal price. Who has all the data? Only Uber. No one else. How then can you enforce such laws?

[-] madmantis24@lemmy.wtf 5 points 6 hours ago

This is the one aspect of "Tech" that is turning me from an enthusiast into an honest Luddite. Our systems of regulation are so weak and ineffective at catching up to these sorts of exploitative practices and by design that I don't see much being done to help people get ahead of this

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[-] group_hug@sh.itjust.works 3 points 5 hours ago

Don't worry they will soon be instituting klarma so you can amortize your Big Mac into a 6 month payment plan.

[-] echodot@feddit.uk 2 points 4 hours ago* (last edited 4 hours ago)

Isn't this going to hurt them more than it helps them? The whole point of places like McDonald's is I know that no matter what location I go to I will get the same food at the same price.

If I don't know in advance how much a meal is going to cost I might as well just go to a local business since the quality will be better.

[-] ILikeBoobies@lemmy.ca 1 points 4 hours ago* (last edited 4 hours ago)

Then they came for the accountants.

To be clear the dynamic pricing isn't the problem in this story, they did that before AI. It becomes a problem when they use surveillance to change prices per person rather than per store.

[-] Dead_or_Alive@lemmy.world 22 points 9 hours ago

Normally my knee jerk reaction would be against this. But if it helps to drive McDonalds to lose customers in the long run, well…🤔

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this post was submitted on 30 Sep 2026
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