McDonald's AI ‘Pricing Engine’ Gauges What Customers Will Pay for a Big Mac: Report
60-second summary
McDonald’s deploys a machine‑learning “pricing engine” that calculates an optimal price for each menu item at every individual restaurant, creating distinct price points even between locations just two miles apart. The system predicts how much each customer will pay, aiming to maximize revenue per store, and signals broader fast‑food pricing personalization that could reshape competitive pricing dynamics.
Machine-learning models set an 'optimal price' per item per restaurant, and have widened the gap between branches two miles apart.