McDonald’s is officially responding to concerns that artificial intelligence might have a little too much say in the price of a Big Mac.
On September 29, Reuters published an investigation into the chain’s use of AI to help guide menu pricing. According to the report, McDonald’s uses technology to analyze millions of transactions and suggest prices for individual restaurants, factoring in estimates of what customers in a particular area are willing to spend. Five franchisees also told Reuters they felt pressured to use the pricing tools, with the company reportedly keeping track of when owners strayed from its recommendations.
McDonald’s, however, would like to make a few things very clear.
In a statement titled Separating Fact from Fiction: AI Does Not Set Prices at McDonald’s, the chain issued a six-part breakdown addressing the claims, complete with its very own fact-checking graphic.
“There’s been inaccurate reporting about how menu prices are set at McDonald’s. So let’s set the record straight,” the company wrote in its response, stating that “AI does not set the price of a Big Mac or any other menu item.”
So what does the technology actually do? According to McDonald’s, its system provides franchise owners with pricing suggestions based on local factors, including operating costs, competition, and customer demand.
As for whether franchisees actually have to follow that guidance, McDonald’s said that “a recommendation is exactly that: a recommendation, not a mandate. Franchisees are not required to accept a pricing recommendation.”
The company also denied using dynamic pricing, meaning its tool isn’t automatically adjusting what you pay throughout the day. It maintains that the technology doesn’t calculate separate menu prices based on an individual customer’s willingness to spend, either.
Of course, McDonald’s isn’t exactly denying that AI has a role in its pricing strategy. Its argument is more that recommending a price and actually setting one are two different things. The chain also pushed back on the suggestion that its franchisee value standards are simply a way to police menu prices, saying its evaluations consider the broader customer experience, not just what customers pay. “Value is about much more than price,” McDonald’s emphasized.
So AI may not be calling the shots, but its influence on the menu isn’t entirely off the table.
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