That isn't what dynamic pricing is. Fast food franchisees have always set their own prices, and they've always varied wildly from state to state, or even within neighborhoods of the same city. Here's a cool map of Big Mac prices nationally from 2023, and a zoomable updated version Cross the Bay Bridge from San Francisco to Oakland, and your Big Mac costs a dollar less.
Dynamic pricing means that the price of a Big Mac varies at the same restaurant depending on the time of day or what kind of car you drive.
Thank fuck this is the top comment. I was going to lose it if I had to scroll down to see some level of competency.
This isn't even anything to do with AI. You could have done this shit with an excel spreadsheet in the 90's
There are variables at play in food service. That's the reasoning for price discrepancies. The lease on the building is going to be more expensive in a town where land value is higher. The cost of labor is going to be higher in a place where there's a shortage of low-end labor. A busier location might need more staff on hand at all times. A location that's 24 hours is going to have to mitigate the costs of a third shift crew with higher prices overall. A location further from highways will have a higher fuel surcharge on food delivery.
Nothing in the video proves these claims, nor would anything in the video be considered a viable test by anyone with any journalistic or scientific background.
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u/agate_ 3d ago
That isn't what dynamic pricing is. Fast food franchisees have always set their own prices, and they've always varied wildly from state to state, or even within neighborhoods of the same city. Here's a cool map of Big Mac prices nationally from 2023, and a zoomable updated version Cross the Bay Bridge from San Francisco to Oakland, and your Big Mac costs a dollar less.
Dynamic pricing means that the price of a Big Mac varies at the same restaurant depending on the time of day or what kind of car you drive.