McDonald's has been using artificial intelligence to dynamically price menu items in the US and some global markets, according to a report by Reuters. This involves finding the "optimal price" to match what a particular store's patrons would be willing to pay. This fluctuates according to location, and even stores in the same city can have different cost amounts for the same exact items.

Reuters got a look at the interface that franchisees use to access this technology. Messages show stuff like "your restaurant is showing MEDIUM SENSITIVITY to price" based on "customer willingness to pay in your area." Cost differences at nearby locations can be stark. Researchers found that a Big Mac at a Fresno, California store cost $5.69, but the same burger cost $6.89 at another branch two miles down the road, a 21 percent difference.

McDonald's says that franchisees are free to set their own prices, but store owners told Reuters that the company pressures them to use the new AI tools. A corporate document shows that McDonald's tracks adherence to the platform and notes any deviations. The company has begun requiring franchisees to be "constructively engaging with McDonald's approved Pricing Consultant and Tools" as part of its new business standards.

CEO Chris Kempczinski told investors that "pricing non-compliance in certain cases is part of those conversations" regarding contract renewals. The pricing portal's terms of service warns about antitrust laws but reiterates that franchisees are "always free to determine the final price." McDonald's has decried Reuters' reporting as "speculative and uninformed," saying the portal is "a tool, not a mandate."