McDonald's to use AI to set burger prices restaurant by restaurant
The fast-food chain is moving towards using AI and data to fix menu prices by area, so a burger may no longer cost the same everywhere.
McDonald's is moving towards using AI and data to set menu prices for individual restaurants. Burger prices will no longer necessarily be the same everywhere.
Prices are said to be set by location and by what amount a customer finds affordable. McDonald's is currently working on fixing burger prices at the level of the area.
An example shows how this could work. If people in a particular area are willing to spend more, a burger there may cost more. If customers in the same area are not willing to buy an expensive burger, or find it unaffordable, prices in such areas may be set accordingly.
The role of AI is described as key. It will pull and examine past sales data from individual restaurants and decide which items are in greater demand. This is why burger prices may differ from one area to another.
Most importantly, McDonald's AI system is monitoring transaction data from a large number of restaurants. Its aim is to find out how much demand for burgers there is in each area and how much customers there can spend. This can help fix the right price, and the company may benefit from it.
The question is whether the system has been introduced in India. According to a Reuters report, the AI system has not yet been introduced in India. For now it is being used in McDonald's restaurants in the United States. There is no information yet on when it will be introduced in India.
