McDonald's Uses AI for Menu Pricing, Sparks Lawsuit
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Insights by Echo AI
McDonald's employs artificial intelligence to set menu prices at its U.S. restaurants, analyzing millions of daily transactions to determine 'optimal' prices for each item. This practice has led to significant price variations between nearby stores, with a single Big Mac ranging from $5.69 to $6.89 in Fresno, California. Franchisees allege they're pressured to use the AI pricing tool, while McDonald's insists it's merely a recommendation. The company now faces a class-action lawsuit accusing it of using AI to unlawfully coordinate prices.
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