McDonald's uses an artificial intelligence-driven pricing engine to recommend menu prices across nearly 14,000 U.S. restaurants. The system analyzes millions of daily transactions, estimates local customers’ willingness to pay, and considers public menu prices at nearby competitors, including Wendy's and Burger King, to suggest an “optimal price” for each item at each location.
Some franchisees say they feel pressured to adopt the AI-generated prices, despite McDonald's describing the tool as a recommendation. The company tracks how closely owners follow its suggestions. The practice has drawn scrutiny over potential antitrust risks, including concerns that algorithmic pricing could lead independent franchise owners to coordinate prices illegally.