McDonald’s AI tool suggests varying Big Mac prices by location

McDonald's uses an AI pricing tool run by Tiger Analytics across about 14,000 U.S. restaurants to recommend prices based on customer willingness to pay. Reuters reviewed interface screenshots with messages such as "Your restaurant is showing MEDIUM SENSITIVITY to Price" and a document tracking franchisee adherence to recommendations. A Big Mac cost $5.69 at one Fresno location and $6.89 two miles away. McDonald's has used some version since at least 2019, sends guidance at least three times a year, and requires constructive engagement with approved pricing tools. McDonald's called Reuters' reporting "speculative and uninformed" and said the system is "a tool, not a mandate" for restaurant-specific recommendations. CEO Chris Kempczinski said Aug. 4 the company provides recommended pricing guidance and pricing non-compliance can be part of franchisee business reviews. Former owner Karen King said, "You don't really have much of a choice [about pricing] anymore." Owners described corporate calls after straying from recommendations. George Michell's ongoing lawsuit says Deloitte recommended over $18 for a Big Mac combo by Jan. 31, 2023; the usual combo price is about $10.19. William Kovacic called the tool's terms language "an acknowledgment there's a potential problem."