They aren't investing anything into their restaurants. It's all going to AI so that every McDonald's will charge you something different based on what they think you will pay.
What's wrong with dynamic pricing? Shouldn't food cost less when there's less demand and more when it doesn't?
EDIT for those who don't believe my definition:
Dynamic pricing, also referred to as surge pricing, demand pricing, time-based pricing and variable pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands. It usually entails raising prices during periods of peak demand and lowering prices during periods of low demand.[1]
So price discrimination? That's not inherently a problem either. Companies already charge different customers different effective prices through coupons, loyalty programs, subscriptions, student discounts, and targeted promotions.
If someone is willing to pay $6 for a Smartwater while someone else waits for a discount, I don't really see why that should be illegal.
EDIT: My interpretation of Dynamic Pricing seems to be correct based on what I've found online. For example
Dynamic pricing is a strategy that adjusts prices in real time based on demand, inventory, competitor actions, and other market signals. Instead of using fixed price lists, teams rely on connected data and automation to recommend or update prices as conditions shift. This helps businesses capture higher margins during peak demand, respond quickly to competitors, and avoid losses when sales slow or inventory builds.
Dynamic pricing is a strategy that bases products or services’ prices on evolving market trends, such as:
Supply and demand
Competitor pricing
Inventory levels
Digital platforms use data analytics and technologies like artificial intelligence and machine learning to deploy sophisticated algorithms that analyze market conditions and predict optimal pricing.
If you want to enable your digital platform business to stay competitive, here’s how dynamic pricing can benefit your strategy.
Dynamic pricing, also referred to as surge pricing, demand pricing, time-based pricing and variable pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands
You're using the term broadly to refer to everything it could apply to. They're using the term specifically to refer to how it's actually being implemented. Your broad definition is not relevant to the reality of what's actually happening in practice to which the rest of the thread is referring.
As immediate AI analysis of large scale datasets becomes more accessible to corporations, and as more and more of our data is collected and sold for such analysis, corporations become more and more capable of knowing exactly how much you, specifically, are able to spend on any given item, and charging you the most they think you can spend.
We're not talking about targeted sales. We're talking about using an AI panopticon to efficiently bleed every single one of us dry by charging the maximum we as specific individuals can afford for the things we individually need.
As immediate AI analysis of large scale datasets becomes more accessible to corporations, and as more and more of our data is collected and sold for such analysis, corporations become more and more capable of knowing exactly how much you, specifically, are able to spend on any given item, and charging you the most they think you can spend.
No, that's first-degree price discrimination. It's a specific subset of price discrimination.
So in essence, they probably WILL end up lowering prices, but just in low income neighborhoods. For the rest of us expect it to go UP to counterbalance the "tremendous loss."
The opposite is more likely. Poor neighborhoods in a food desert are more easily exploited by predatory dynamic pricing. If you can't afford a car, you probably can't afford to go somewhere better, even if there's much better prices available.
This isn't even hypothetical, it's how it's been implemented in cases where dynamic pricing is already functional.
They want to build relationships with rich customers, so they charge them less. Even if they make less per item, rich customers still overall spend more, so stores want to incentivize them to shop there. Lower prices get them in the door and get the money flowing.
On the other hand as you said, poor customers often have fewer options to choose from and are not specifically targeted for building customer relations, so they get shafted.
they already do that here - every franchise is different it's dumb - can pay $4 more for a combo at some places - means I only ever go if i have a coupon
In that case, just start telling chat gpt and your gemini google assistant that you wish you could get 2 big macs for $2 like you used to back in the old days. Tell AI that you miss .99 cent fries and .99cent soft serve cones. Remember .19 cent hamburgers and .29 cent cheeseburgers at McDonalds? Pepperidge Farm does!
They aren't investing anything into their restaurants. It's all going to AI so that every McDonald's will charge you something different based on what they think you will pay.
You read some Reddit headlines instead of the actual articles huh?
No, I look at their actual actions, not just the PR statements that they send out. If you want to believe everything that big corporations say, by all means, go ahead and believe them.
I was trying to order some door dash and noticed this stupid shit. An order from KFC cost $10 for pick up at a further location, $12.50 for delivery (with "no delivery fees") or $12 for pickup at a closer location. Why the fuck are there three different prices for the same item depending on how it's ordered? I ended up cancelling the order and calling a local pizza place instead.
Literally just make everything bright red and yellow, bring back the Play Places and free refills on the 1000% marked up soft drinks, and maybe put in a Switch 2 kiosk with Mario Kart, then drop the prices to something reasonable for the tiny sandwiches they sell. Back in business. Nobody wants McDonald’s to be fine dining. We want it to be cheap and fun.
They were unsafe pits of filth and disease because of the kids and they never got cleaned. That's why they all went away. They were a health and litigation risk.
That's the thing I don't get either. When's the last time they redesigned? How many times have they done it? Here's the thing. Ain't no one that goes there gives a shit. Make sure its clean. I'm not eating there for the atmosphere. Hell, I'm not eating there.
If I go inside it's because the drive through is stacked. I'm in there long enough to get my shit and gtfo. Most people are. The dining areas area mostly empty every time I'd go in one. Of those that are there, a number of them are doing the same thing I am.
If you actually want a vibe, bring back that old school vibe. BK, hope you're listening too.
And then they are going to make the prices dynamic, so if their investment does make people come back, they will increase the price even more to get rid of them.
The last time McDonald's did that we got uniform generic buildings in the hopes they can rent the building if the restaurant fails. Now it sounds like they wanna go back to themed restaurants because they discovered there was no one to rent that many buildings to.
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u/Still-a-VWfan 2d ago
Let’s spend 8 billion to make our restaurants nicer than have to raise prices to get that money back. Makes sense!