News Summary

• McDonald's is using an AI pricing engine to recommend what each of its nearly 14,000 restaurants should charge for every menu item.
• The engine uses machine-learning algorithms to analyse data from millions of daily transactions.
• It produces what McDonald’s calls ‘the optimal price’ for each item at each location, from Big Macs to discounted coffee for seniors.
• Three franchisees said the engine has widened price gaps between restaurants, even between neighbourhoods in the same area.
• Five store owners told Reuters the company pressured them to use the AI tools.