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.
How do I manipulate it to lowball
Start stealing burgers so they know you’re not willing to pay the current price
WTF is even Grimace? The turd after a supersize meal?
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…
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?
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.
It isn’t quick anymore either.
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
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.
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.
It wouldn’t surprise me if they had some super addictive drug in there
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.
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.
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.
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.
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.
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.
I kinda miss ordering a double quarter pounder big mac, but otherwise not worth it for many reasons
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.
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.
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.
There should be quotes around “burgers” in this headline as well IMO.
The text is pretty good though:
[…] but for hockey puck burgers that have been sitting under a hot lamp.
Been 5 years since I ate my last Mc Crap. Not going back ever.
Why is it still referred to as a burger; it’s a product, get it right.
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.
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.
Don’t worry they will soon be instituting klarma so you can amortize your Big Mac into a 6 month payment plan.
Dynamic pricing nudges the price to the maximum a customer can afford which temporarily maximises profits but creates in the mind of the customer a feeling of being relentlessly over charged and eventually and long-term they won’t come back.
That and the food.
You’ll profit early though. Usually people don’t leave when they see high prices. They just pay it once and are much more reluctant to ever return.
that’s where the app deals for free french fries every 3rd tuesday in February comes in. now you really got em!
Those app deals are customised per customer as well. Basically a gacha but for McDonald’s.
I don’t like vendors who think they can take advantage of me for a few extra bucks because of what they see (isn’t that a form of prejudice?)
Same with haggles at flea markets or garage sales. If you don’t label your prices I’m immediately not interested. I’m a demographic that looks “put together” and thus “wealthy” when in reality I’m basically broke and would file for bankruptcy if it’d clear my debt.
So when I come across a haggler (usually an old guy or a foreigner from a country that has a culture of haggling) I tend to avoid them because I don’t enjoy that process. Thats why America came up with price tags and fixed pricing for stuff. Way less hassle. Only idiots really savor the process of haggling. It sucks.
Only idiots really savor the process
Strong “I don’t like a thing, therefore nobody should” vibes there buddy…
Cool. Glad I’m on an opinion forum and not a member of a legislative body that makes laws that apply to everyone.
Opinion and insulting other people are not the same thing.
Nah dude, haggling rules. I get and respect your attitude that you don’t like it, because you’re coming from a place of fairness and transparency. But haggling isn’t about ripping people off—quite the opposite, it’s about finding a deal that both parties are happy with. It’s also more important in some cultures than others, e.g. to some people not haggling is actually rude.
The secret is that you can still haggle when there are price tags and fixed prices. You can ask for discounts, etc. I’ve successfully haggled my rent down! There are no rules! It’s basically a socially acceptable form of social hacking.
If haggling is idiotic, then I’m saving too much money to not be idiotic.
There are no rules!
That isn’t great when it cuts both ways. I’ll stick with fixed pricing and enforceable tenant protection laws. Rules are there for a reason.
I mean yeah, I basically got sick of landlords arbitrarily raising rents, and so I eventually started negotiating back with them, and it worked way better than I expected.
I would dramatically prefer a system of transparent rent control, but sadly there are no rules like that where I live.
Normally my knee jerk reaction would be against this. But if it helps to drive McDonalds to lose customers in the long run, well…🤔
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.
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.
Kids who want happy meals drag their parents there.
Not my kids. It’s called parenting.
Then they came for the accountants.
To be clear the dynamic pricing isn’t the problem in this story, they did that before AI. It becomes a problem when they use surveillance to change prices per person rather than per store.
The prices they charge in Allentown PA is ridiculous. I rather go to Texas roadhouse and get steak
I’d rather go to Texas Roadhouse
Eww. I’d rather neither, thanks.
