McDonald’s has been using artificial intelligence to dynamically price menu items in the US and some global markets, according to a report by Reuters. This involves finding the “optimal price” to match what a particular store’s patrons would be willing to pay.

This fluctuates according to location, and even stores in the same city can have different cost amounts for the same exact items, according to information reviewed by Reuters. This is basically surge pricing, like with ride-share platforms, but for hockey puck burgers that have been sitting under a hot lamp.

Reuters got a look at the interface that franchisees use to access this technology and it’s pretty creepy. Messages show stuff like “your restaurant is showing MEDIUM SENSITIVITY to price” based on “customer willingness to pay in your area.” Cost differences at nearby locations can be stark. Researchers found that a Bic Mac at a Fresno, California store cost $5.69, but the same burger cost $6.89 at another branch two miles down the road. That’s a 21 percent difference.

  • heartSagan5@lemmy.zip
    link
    fedilink
    English
    arrow-up
    9
    ·
    2 hours ago

    Stop using their “Rewards app” It’s tracking your purchases, which’ll inform their surveillance and skew the boards.

    • Kissaki@feddit.org
      link
      fedilink
      English
      arrow-up
      2
      ·
      1 hour ago

      This reminds me of a video I saw where someone committed to this. New phone, use free offers, put stuff in cart but don’t buy, GPS in low income or low spend areas. They got someone from Craigslist to do much of this work.

      It worked. I don’t remember channel or where they compared afterwards, though.

      Seems like here it’s store based not individual customer based. Maybe you can get others to join you. Buy only the cheapest items, and the other items will get cheaper.

  • Kaligalis@lemmy.world
    link
    fedilink
    English
    arrow-up
    10
    ·
    7 hours ago

    I don’t buy McDonal’s because the price/value equation is off. Whether it is off because they think I’m rich or because they think I’m addicted doesn’t really matter. The result is that I just don’t buy.
    But if I was a regular customer, I would see unstable prices as a negative because it means, I have to research current prices first before going there. That’s inconvenient. I prefer reasonable and stable prices.

    Maybe, McDonald’s introduces haggling next so customers can feel like they are buying a used car when they buy a burger…

  • Regrettable_incident@lemmy.world
    link
    fedilink
    English
    arrow-up
    9
    ·
    6 hours ago

    Not that I needed another reason to avoid McDonald’s. Tastes nice, but the burgers have become tiny, and their food gives me the shits.

    • Joelk111@lemmy.world
      link
      fedilink
      English
      arrow-up
      4
      ·
      4 hours ago

      Does it taste nice? I quit fast food 3 years ago but of all the things they serve, I don’t miss their burgers. Their fries and nuggets maybe, but I never want a McDonald’s burger. They just aren’t good at all, not by any metric.

        • Joelk111@lemmy.world
          link
          fedilink
          English
          arrow-up
          2
          arrow-down
          1
          ·
          2 hours ago

          I mostly miss the fries tbh. Fortunately a brewery near me has the bombest fries I’ve ever had, but sometimes you do just want those garbage McDonald’s fries.

      • MintyFresh@lemmy.world
        link
        fedilink
        English
        arrow-up
        2
        ·
        4 hours ago

        About once a year I’ll convince myself fast food is a good idea. I always feel ill for a day after. Idk if it’s the mega sodium or the ultra processed grease, but I just feel queezy.

        • Joelk111@lemmy.world
          link
          fedilink
          English
          arrow-up
          1
          ·
          3 hours ago

          What’s even more weird is that going somewhere that isn’t a chain, like a local burger joint, doesn’t make me feel as bad. Maybe it’s all in my head or maybe the food is that much better.

  • WizardOfFrobozz@lemmy.ca
    link
    fedilink
    English
    arrow-up
    62
    ·
    10 hours ago

    The bargain with fast food was that it was shitty for you, but it was quick, cheap, and tasted good. Now it’s even WORSE for you, costs as much as an actual meal, and increasingly tastes like garbage. What exactly are people trading off now?

      • mrgoosmoos@lemmy.ca
        link
        fedilink
        English
        arrow-up
        11
        ·
        9 hours ago

        there was ONE McDonald’s that I used to still go to on road trips.

        then the US threatened to take over my country, so ofc I stopped going to McDonald’s. I tried to make an exception for it last year because I had to pee and I figured it would be the one place actually open at 1am for me to pee and get a coffee, but nope, closed. guess they want people to piss in the drive thru

        McDonald’s doesn’t even offer washrooms anymore, they have literally nothing to offer me

        • Echo Dot@feddit.uk
          link
          fedilink
          English
          arrow-up
          4
          ·
          9 hours ago

          There’s no point going to McDonald’s anyway because there’s always a bunch of ubereats and door dashes in the way, so you can’t get in.

    • Vex_Detrause@lemmy.ca
      link
      fedilink
      English
      arrow-up
      13
      ·
      8 hours ago

      A burger-fries-drink is the same cost as the most amazing local shawarma and drink or the freshest ban-mi from the local Vietnamese resto.

    • rumba@lemmy.zip
      link
      fedilink
      English
      arrow-up
      16
      ·
      10 hours ago

      I keep being amazed when we go out once a month for a sit down dinner and it’s only $5 more a head than fast food.

    • cardboardboxfort@lemmy.world
      link
      fedilink
      English
      arrow-up
      4
      ·
      9 hours ago

      More reasons to not eat McDonalds. It sure seems like they are trying to shift from being a hamburger chain into full real estate company and are trying to sabotage their weaker franchises so they can cash out the properities PE style.

        • cardboardboxfort@lemmy.world
          link
          fedilink
          English
          arrow-up
          2
          ·
          8 hours ago

          No, corporate owns most of the stores property then leases that to franchise owners. If one wanted to liquidate some of the property they owned and downsize operations they’d have to kick out the franchise owners first.

          • frongt@lemmy.zip
            link
            fedilink
            English
            arrow-up
            1
            ·
            8 hours ago

            McDonald’s corporate is the franchise owner/franchisor. The franchisees lease and operate the stores.

    • Agent641@lemmy.world
      link
      fedilink
      English
      arrow-up
      3
      ·
      9 hours ago

      For the price of one decently sized McDonald’s meal here in Australia (about $16) I can comfortably feed myself for a week of healthy, filling dinners, and maybe lunches too, using staple foods and in-season veg.

  • GamingChairModel@lemmy.world
    link
    fedilink
    English
    arrow-up
    24
    ·
    9 hours ago

    When I’m bored, I get price quotes from Lyft and Uber to the airport. I’ll click around and look at the different tiers of service. Then I choose not to actually request a fare, and close the app.

    I fly enough to where both apps probably have me as a regular airport customer, but that I’m price sensitive enough where I just won’t use their service sometimes.

    I do the same with Doordash and other food apps, where I just put together potential orders to get a sense of how much something would cost if I ordered it, and then just never order it, letting that cart expire. I’m hoping this poisons their data or adds something to the price sensitivity metrics.

    I also look at airfares, hotel prices, etc., a lot. It’s not for the purpose of manipulating their algorithms, as I just like to get a sense for how prices move over time. But if there’s a side effect that these variable pricing algorithms take into account people who window shop and walk away, maybe I’m helping push prices down.

    If they’re gonna create a panopticon, we should fuck with their data.

    • Buddahriffic@lemmy.world
      link
      fedilink
      English
      arrow-up
      4
      ·
      7 hours ago

      Yeah, my first thought was that such a system was likely gameable.

      But then my second thought was that idgaf what any of the McDonald burgers cost. The price they’d need to set to get me to “buy” them wouldn’t be economically viable for the company because I have no clue how a “pay customers to take our burgers” scheme could work out favorably for them.

      • Regrettable_incident@lemmy.world
        link
        fedilink
        English
        arrow-up
        2
        ·
        6 hours ago

        At least where I live, what they cost is ‘way too much’. You can get a meal from a decent restaurant for the same price, and their burgers have shrunk considerably.

        • Buddahriffic@lemmy.world
          link
          fedilink
          English
          arrow-up
          2
          ·
          2 hours ago

          I remember even when I still thought I liked them, I’d never feel satisfied after finishing a meal. For a while I mistook that for meaning I liked the food. Like “oh I just had one but want another already, must be good”. But no, I think now that it was just a sign of my body being well aware that it didn’t have enough nutritional value to meet its needs.

          I’ve had other occasions where I’ll finish a combo and wish I had more with other fastfood places, but it’s not a constant experience like it was with McDonald’s.

          Hell, that time they did that 2 big macs for $2 (just the burgers) deal, I bought 4 of them. I was full by the end of the 3rd and gave the 4th away but still wasn’t satisfied, I just couldn’t physically fit any more in my stomach.

          Anyways, all that to say that any price is “too much” for those empty calories. But yeah, it used to be ok for “something quick and cheap to put in your stomach on a long drive” but even that is no longer the case.

    • tb_@lemmy.world
      link
      fedilink
      English
      arrow-up
      5
      ·
      8 hours ago

      The text is pretty good though:

      […] but for hockey puck burgers that have been sitting under a hot lamp.

  • Buffalobuffalo@reddthat.com
    link
    fedilink
    English
    arrow-up
    1
    arrow-down
    1
    ·
    4 hours ago

    Pricing the items based on the specific customer is sketchy. A franchise working with a franchisee on the most profitable pricing model is what they are supposed to do. At best this is either a nothing burger of an article, at worst it hides the fact that some places are tracking customers and adjusting prices per person. Which is shit.

  • FlashMobOfOne@lemmy.world
    link
    fedilink
    English
    arrow-up
    22
    arrow-down
    1
    ·
    12 hours ago

    On the plus side, surveillance pricing legislation has already been introduced in (IIRC) four states just this year, and if I had to guess, we could eventually see state-level bans in at least half of the states.

    This, like the electronic tags at Walmart, or Uber charging more when your phone battery is low, or Target mining your loyalty club data to surge price you, is something that they’re speedrunning to try and normalize before the law catches up.

    • dropdrip@lemmy.ml
      link
      fedilink
      English
      arrow-up
      13
      arrow-down
      2
      ·
      12 hours ago

      The issue is that these are black boxes. No one but the authors of the system know what’s happening. Law prevents Uber from increasing the price on a nearly flat mobile-computer? They didn’t. That’s just the normal price. Who has all the data? Only Uber. No one else. How then can you enforce such laws?

      • madmantis24@lemmy.wtf
        link
        fedilink
        English
        arrow-up
        5
        ·
        10 hours ago

        This is the one aspect of “Tech” that is turning me from an enthusiast into an honest Luddite. Our systems of regulation are so weak and ineffective at catching up to these sorts of exploitative practices and by design that I don’t see much being done to help people get ahead of this

        • dropdrip@lemmy.ml
          link
          fedilink
          English
          arrow-up
          1
          arrow-down
          1
          ·
          12 hours ago

          No government is going to enforce a universal flat-rate. However that doesn’t prevent what I’m talking about. Uber can give everyone a different flat-rate. How would you know? You wouldn’t. That’s the problem. A friend gets charged a different flat-rate? Ok, now you know, but when the government goes to investigate Uber says, “well the flat-rate had to increase. It’s now XXX.” Again, the imbalance is enormous between the businesses that have the data and any external regulatory body that has to do footwork to get any data.

          The same item sells for two different prices at separate stores? “Oh, that store just had a sale.”

          • FlashMobOfOne@lemmy.world
            link
            fedilink
            English
            arrow-up
            4
            arrow-down
            1
            ·
            12 hours ago

            How would you know? You wouldn’t.

            That’s not necessarily true. It’s ridiculously easy to find, especially in this example. Simply change your pickup address to the house next door.

            People are much more perceptive about this activity than you give them credit for, and in fact, there’s a whole sub-genre of content creator that focuses on it. There are also leakers. That documentation will find its way to local authorities and become actionable when the amount of it passes a certain threshold, not unlike the number of dead kids translating to FB having to go to court.

            • dropdrip@lemmy.ml
              link
              fedilink
              English
              arrow-up
              1
              ·
              11 hours ago

              That’s not necessarily true. It’s ridiculously easy to find, especially in this example. Simply change your pickup address to the house next door.

              Do you think that fools Uber into believing that the user using the same mobile-computer, the same account, the same data-connection and within the same travel patterns is now a completely different person?

              • FlashMobOfOne@lemmy.world
                link
                fedilink
                English
                arrow-up
                1
                arrow-down
                1
                ·
                11 hours ago

                It’s immaterial. Surveillance pricing algorithms aren’t without their flaws, and in this case, it’s relying too heavily on established patterns.

          • GalacticRobot@lemmy.world
            link
            fedilink
            English
            arrow-up
            2
            ·
            11 hours ago

            Except you know, all the cities that already do for taxis, which is what Uber is, regardless of how it tries to skirt around it. Get a taxi, the rate is literally posted on the side of the vehicle. Yes, taxis certainly have their own issues, but it’s a sure whole lot more honest than Uber pricing, and that’s the bottom of the barrel.

            • kestrel7_7@lemmy.world
              link
              fedilink
              English
              arrow-up
              1
              ·
              8 hours ago

              Yep. I’ve been saying for years that if ubers were regulated like taxis, they would cost the same amount as taxis, and the company would have no reason to exist. It’s not about using new tech to provide new services, it’s about using new tech to skirt regulation—and also the regulations existed for great reasons, and we get to rediscover why.

      • FlashMobOfOne@lemmy.world
        link
        fedilink
        English
        arrow-up
        3
        arrow-down
        1
        ·
        12 hours ago

        How then can you enforce such laws?

        The same way everything is enforced in billionaire-owned America: fines that, at the end of the day, are likely a minute fraction of a corporation’s profits, though some states will be heavier-handed than others. The Federal Government does not lead on any issue that is of crucial importance to the consumer anymore, so the states are where the power of regulation lies. It’s not ideal but something is better than nothing in this case.

        Ultimately, how you fare in this ecosystem depends on your own digital hygiene. The best thing you can do for yourself is simply not consume these products in the first place, but that’s not really an option for many who may live in food deserts or have no options for shopping but Walmart or Target, which is why some measure of regulation is inevitable in most of the states, I think.

        My recommendation is to avoid pieces of software that mine your data, like Windows, apps, and certain Internet browsers, use a VPN on any device you use to access the Internet, and 100% avoid loyalty clubs. Old-school methods are best, like making a reservation over the phone for example.

          • FlashMobOfOne@lemmy.world
            link
            fedilink
            English
            arrow-up
            2
            arrow-down
            1
            ·
            10 hours ago

            Agreed.

            The law is working slowly but deliberately. These bills, while new for now, will spread for sure.

  • kent_eh@lemmy.ca
    link
    fedilink
    English
    arrow-up
    4
    ·
    8 hours ago

    even stores in the same city can have different cost amounts for the same exact items

    That has been a thing for years.

    A local guy did the legwork pre-covid to price check a list of items at every McD’s in the city and found that there was a significant difference in price across the city.

    The patterns he found were that franchisees were generally consistent across their own locations, and that the locations in the more affluent parts of the city tended to be more expensive.

    The only real surprise was that corporate didn’t mandate exact prices across an entire market area.

  • Dead_or_Alive@lemmy.world
    link
    fedilink
    English
    arrow-up
    23
    arrow-down
    1
    ·
    13 hours ago

    Normally my knee jerk reaction would be against this. But if it helps to drive McDonalds to lose customers in the long run, well…🤔

    • DrSoap@lemmy.world
      link
      fedilink
      English
      arrow-up
      6
      ·
      13 hours ago

      I don’t know who is going there any more. I know there are people, I have one a few blocks away and the drive through is always full but you can go to local places and get good food for so much cheaper.

      • Dead_or_Alive@lemmy.world
        link
        fedilink
        English
        arrow-up
        3
        ·
        9 hours ago

        Kids who want happy meals drag their parents there. However once they hit 5th grade the allure of the happy meal fades and they usually don’t come back.

  • group_hug@sh.itjust.works
    link
    fedilink
    English
    arrow-up
    3
    ·
    9 hours ago

    Don’t worry they will soon be instituting klarma so you can amortize your Big Mac into a 6 month payment plan.