McDonald's Uses AI to Gauge What You Will Pay for a Big Mac, and Franchisees Say They Feel Pressure To Follow

McDonald's is increasingly using artificial intelligence to help determine how much customers may be willing to pay for a Big Mac, while some franchisees say they are under growing pressure to follow the technology's recommendations.

The fast-food giant's pricing engine analyses millions of transactions and other market data to suggest what it calls the 'optimal price' for individual menu items at individual restaurants.

The system is being used across nearly 14,000 McDonald's restaurants in the US and can produce different recommendations by location.

Reuters found that a Big Mac sold for $5.69 at one company-operated restaurant in Fresno, California, compared with $6.89 at another company-operated McDonald's about two miles away. The difference does not prove that AI set either price, but illustrates how prices can vary between nearby restaurants.

The technology is drawing attention both for what customers may pay and for its implications for the relationship between McDonald's corporate operation and its franchisees. McDonald's says franchise owners retain control over their prices, yet several franchisees told Reuters they had experienced pressure to use the company's pricing tools.

These tensions come as the chain tries to balance affordability for customers with rising costs for restaurant operators.

How McDonald's AI Pricing Engine Works

McDonald's pricing engine uses machine-learning algorithms to analyse millions of daily transactions and recommend prices for individual menu items. According to Reuters, the system considers factors including local demand, historical sales and estimates of customers' willingness to pay in a particular area.

The platform can also incorporate publicly available pricing information from nearby competitors such as Wendy's and Burger King. Those companies told Reuters they do not use AI for their pricing decisions.

That means the headline claim that AI can 'price your Big Mac' needs some qualification. The system is not necessarily identifying a particular customer and calculating a personal price for that person. Instead, it can assess the price sensitivity of customers in a restaurant's market and recommend a price for that location.

McDonald's has used some form of AI-assisted pricing technology since at least 2019, and has expanded the system as part of a broader push to use technology across its restaurant network. McDonald's says more than 95% of its US restaurants are owned and operated by franchisees, who set their own menu prices.

McDonald's Tracks Franchisees' Pricing Deviations

However, Reuters reported that five franchisees described various forms of pressure to follow the AI recommendations. Company documents reviewed by Reuters also showed that McDonald's tracks franchisees' deviations from recommended prices.

A January communication reportedly required franchisees to be 'constructively engaging with McDonald's approved Pricing Consultant and Tools'. Chief executive Chris Kempczinski also told investors that pricing non-compliance could form part of franchisee business reviews.

McDonald's says its pricing portal is 'a tool, not a mandate', designed to provide restaurant-specific recommendations and help franchisees make informed decisions. The company also described Reuters' reporting as 'speculative and uninformed'.

This creates tension between corporate pricing goals and the economics of individual restaurants. McDonald's earns a large share of its revenue through franchise-related payments, while franchisees must cover expenses such as wages, rent and other operating costs.

Why the Pricing Strategy Is Facing Scrutiny

Regulators are paying closer attention to algorithmic pricing. The US Department of Justice and other regulators have scrutinised whether some pricing practices can facilitate illegal coordination between competitors; Reuters reported that the FTC and DOJ did not respond to its request for comment on the McDonald's story.

The Federal Trade Commission is also examining personalised pricing. On 19 August 2026, it sought public comment on a proposed enforcement policy statement concerning the use of personal data to estimate how much an individual consumer may be willing to pay. The comment period closed on 25 September.

McDonald's pricing system is not necessarily the same as personalised pricing, because the reported recommendations focus on restaurant-level market conditions rather than a known individual's personal data. The reported system assesses customers in a restaurant's market, rather than setting a price for a known individual.

For customers, however, the practical result can still be noticeable: the price of the same burger may differ between nearby restaurants. For franchisees, the bigger question is how much freedom remains when corporate algorithms increasingly shape the prices they are encouraged to charge.

As McDonald's expands AI across its business under its NEXT strategy, pricing is becoming another test of how much decision-making should remain with individual restaurant owners and how much should be guided by corporate technology.