McDonald's has begun utilizing artificial intelligence to establish burger prices in the United States and several other nations. While the company asserts that franchise owners can set their own pricing, interviews with store owners indicate that the corporation is effectively imposing AI-generated prices on them. Former franchisee Karen King remarked, "You don't really have much of a choice anymore." The pricing algorithms analyze how much customers at certain locations are inclined to pay by examining transaction histories and competitor pricing. Franchisees have noted that this approach has resulted in significant price discrepancies, even among outlets situated close to one another; one instance highlighted a 21% price variation between restaurants located just two miles apart. McDonald's has responded to these allegations by stating that they are mere speculation. Nonetheless, in recent months, the algorithm has increasingly recommended stabilizing or even reducing prices, which has caused frustration among franchisees facing rising costs and declining profits. The question arises: is this a fair business practice?
Informational material. 18+.
