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Story summary
- McDonald’s is expanding an AI pricing engine that recommends menu prices to its franchisees.
- The engine analyzes millions of transactions and competitor menus to estimate each store’s willingness to pay.
- In Fresno, California, the tool suggested a Big Mac price of $5.69 at one store and $6.89 two miles away.
- Connecticut franchisee George Michell sued, claiming the AI suggested an $18 Big Mac meal and that McDonald’s tried to oust him.
- CEO Chris Kempczinski warned that non-compliance with the pricing tool could affect lease renewals and cited antitrust risk.