McDonald’s disputes reports that it uses AI to set menu prices, saying the chain does not employ dynamic pricing.
McDonald’s rejects AI pricing claims
The company provides franchise operators “tools, resources, research and recommendations” to help them make informed decisions on pricing, but operators ultimately make the decisions over menu costs.
According to the statement, the recommendations are advisory and do not alter menu costs automatically.
Media outlets reported that a study used transaction data from millions of daily sales at roughly 14,000 restaurants to estimate how much a patron might pay.
Historically, operators have set costs themselves, often looking at market trends. A recent limited-time offer, the Big Arch Burger, sold for $8 in some areas and $9 in others.
“Businesses have long considered factors such as local costs, customer demand, competition and economic conditions when making pricing decisions,” the chain said.
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Digital menu boards currently display limited-time items, indicate out-of-stock items and can vary the offering by day, as observed at a Virginia location.
McDonald’s emphasized that its advisory system does not change prices in real time or at different times of day.
An evaluation of franchisee’s pricing decisions began earlier this year to ensure that operators were consistently offering “reliable value” across the customer experience.
Technology investments and industry context
In September, McDonald’s launched its Next strategy, committing $8.5 billion to partner support through 2036 for modernization, operational upgrades and new technology.
As part of the plan, it introduced ArchIQ, an artificial-intelligence-powered restaurant operating system designed for drive-thru voice assistance, automated inventory tracking and computer-vision-linked equipment.
Executives said the system is intended to simplify operations and let crew members focus on hospitality rather than routine tasks.
