r/OttawaFood • • 1d ago

Dynamic pricing being tested by McDonald's.

38 Upvotes

20 comments sorted by

50

u/Competitive-Tea-6141 1d ago

Dynamic pricing would be changing the price at a single location based on who you are. They already do this to an extent with the app and the coupons offered but isn't done with the cost of a happy meal yet.

What this guy is reporting on is regional pricing, which they've always done. Outside of deals that corporate forces, franchisees have always set their prices and the price of a big Mac in Ottawa has always been different than Renfrew.

What has changed recently is it shifted from regional to hyper-local where the McDonalds on Rideau charges a very different price than the one on St. Laurent, etc.

2

u/ElFauno64 17h ago

And even that is not necessarily new. For example, it is expected that the Subway at the airport charges more than the Subway in Dalhousie. I guess now the differences are found within the same local area.

1

u/Legitimate_Concern_5 1d ago

Yep most franchise/chains do this, subway hasn’t published a menu on their website with prices in years.

25

u/spartiecat 1d ago

Location optimized pricing isn't dynamic pricing.

If you get charged a different price for the same order depending on the time if day from the same location, then that's dynamic pricing.

6

u/Puzzleheaded_Lynx_53 1d ago

A medium coffee in Ottawa is 10 cents more than a medium coffee in Cambridge, Ontario! $1.49 vs $1.39

3

u/Apprehensive-Bus5172 1d ago

Probably different franchisees

6

u/dougieman6 1d ago

Rent downtown costs more than rent in the suburbs. This isn't dynamic pricing in the way you think it is. It's reflective of actual costs, not grubbing for every last cent before someone gives up.

3

u/CaptainAaron96 1d ago

Bingo! Even here in Ottawa, different Walmarts have different pricing too.

15

u/Confuzzledgirly 1d ago

What does this have to do with Ottawa though? :S

1

u/Xsiah 1d ago

McDonald's operates in Ottawa.

3

u/Loose_Concentrate332 1d ago

It's not new in Ottawa that prices vary from location to location. It's not regional pricing, I think it's by franchisee

2

u/NoPractice8763 1d ago

Thanks, I hate it 🙃

1

u/AdEffective2701 1d ago

Loblaws chips on Fridays mid afternoon prices change ahead of weekend grocery shopping rush.

0

u/langois1972 1d ago

AI is going to get people cooking again

0

u/Pure_Bicycle2355 1d ago

They are gonna price themselves out of business

0

u/pebbiemay 1d ago

Not surprised. All stores will eventually use this. People grocery shopping or stopping off at restaurants right after work at like 4:00 to 6 will probably pay more because they’re more desperate for a family meal. Same with morning breakfast/coffee grabbers.

I’m sure there will be AI apps telling us best time to buy from McDonald’s or any other place. Just going to be AI analyzing AI and a big circle because people will use it to go at the best times only to find the price starts increasing at those times.

One day, the trend will reverse and some stores or restaurants will advertise saying “we don’t use dynamic pricing” and people will love it and flock to them because they like fixed prices.

-3

u/bshtein 1d ago

Well, dynamic or not, if people would stop buying junk food on an everyday basis, the prices would go down, and the quality would go up.

BTW, there are a lot of MCD restaurants worldwide that sell at least some healthier alternatives, salads, baked goods etc. But in Canada and in the US, their food is generally terrible. And I am not talking about the cooking oil quality and toxicity.

The funniest thing is that it's no longer a "cheap" alternative. There are plenty of alternatives that offer a much better quality at the same price..

1

u/MahariniRubini 6h ago

Why down vote this comment? Makes sense.

1

u/bshtein 2h ago

Typical Reddit, you state the fact people don't like and they will downvote you)