McDonald's uses AI 'pricing engine' to gauge customer willingness to pay, widening price gaps between restaurants: Report
McDonald's is reportedly using machine-learning models from Tiger Analytics to set "optimal prices" for menu items at each of its nearly 14,000 restaurants, based partly on customer willingness to pay and competitors' prices. This system has widened price gaps, with Reuters finding a Big Mac selling for $5.69 at one Fresno, California store and $6.89 at another two miles away. While franchisees officially set prices, McDonald's allegedly pressures them to follow recommendations and records deviations.
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