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.
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.
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?
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.
Only allow flatrate pricing per distance and time?
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.”
It is a lot too, like the reuters guy was charged like 6 and 8 dollars for one of these garbage sandwhiches. I would get real food for that money.
Using slop to rate yor slop. Great.
I am using my brain to avoid going there if I can.
There are better places for less.Oh no a socialist ‘planned’ economy via computers. Argentina don’t you dare! … I’m sure glad we have capitalist ‘planned’ economies now. Their plan is to fuck you till you die. More surveillance please! Surveillance-capitalism demands it!
The prices they charge in Allentown PA is ridiculous. I rather go to Texas roadhouse and get steak
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.
Maccies has a very high opinion of something that makes me chuck up half an hour after I’ve eaten it…
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’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.
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.
Glad I haven’t eaten their trash microplastic food in like 5 years since I found out it was our pedophile and Chief’s favorite restaurant
You get to eat slop and have it priced by slop. What a time to be alive!
So if I have no income, dynamic pricing will set the price to free, right?
Congratulations! Based on your phone data you’ll become a Happy Meal for free!
A special offer for our broke customers from Germany.
The German translation for “I get” is “ich bekomme”.
The AI will determine there are a few generous people on the parking lot to whom you can beg for the money.
The dynamics is unidirectional.
Never! Corporations only use technology for evil.
So glad Washington state was the first state to ban AI “Surveillance Pricing” at Grocery Stores. Hopefully it expands to dynamic pricing and for all business soon.
I mean it’s peoples fault really. They let them get through with this. Shit food, shit prices, smaller portions etc and people still queue to get a burger.
Unfortunately things will get shittier because people are just too careless about these things so we can’t have nice things.
Absolutely. If people accept it they’ll keep doing it.
However, if they’re departing from a straightforward price tag where prices are consistent and pre-agreed, it sounds like we’re going back to the time of bartering. Anywhere that implements this, customers should be prepared to say no at the till. They might backtrack on this when customers with a huge trolley pull up at the checkout and then refuse to pay because they disagree with the amount.
I’m so glad I quit going. And if I quit going, pretty much everyone has
I had one of those less than stellar childhoods, but I had a fantastic grandparent that would take me to McDonald’s sometimes, and that was A HUGE BRIGHT SPOT for me, back when they had aquariums and play places in them? Like, until pretty recently, I was a die-hard fan. I WANTED to like them. What they actually tasted like almost didn’t matter, the SIGHT of the yellow arches made me start to think about what being loved by a trusted adult feels like.
They had to WORK TO LOSE ME as a customer rather than the other way around. And they still managed.
i think you underestimate how little most people care about politics, current events, AI, etc.
It’s sad but true… drive through still full in my area. I often find McDonald’s trash polluting the parks and sidewalks. What’s the point of the “paper” cups when they’re lined with plastic or something that causes them to never decompose?
They put pfas on the paper cups, also all the wrappers your food is in.
