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.
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?
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.
Every franchise is, and has been, a real estate company first.
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.
McDonald’s corporate is the franchise owner/franchisor. The franchisees lease and operate the stores.