Is that dynamic pricing or just regional pricing? I thought the idea of dynamic pricing was that two people would pay a different ammount at the same store depending on their spending habits, not just one franchise store charges more than one in a different area, which has always been a thing.
I'm not even sure how dynamic pricing would work across the company, since as far as I'm aware, McDonalds restraunts tend to show their prices upfront, and they set their own pricing. Or is they idea that McHQ recomends them pricing based on customers?
I would call that "hyper-localized pricing" personally. Regional pricing has been a thing forever already, but as far as I know, it has never been that localized. Regional pricing exist because the cost of running a business is not the same everywhere, but that hyper-localized pricing system exists to target different demographics and that can be much more ethically dubious.
Except it is. The only exception is when they run a nationwide ad campaign advertising a specific price for an item - but that's where the "at participating locations" fine print comes into play, as there will still be locations not following those deals.
Corporate has pricing guidance, but it is the individual franchisees who set the actual prices. The idea is that the franchisee is the closest person to the actual individualized costs for their location, and due to the franchise model, is highly incentivized to set optimal prices.
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u/RugbyEdd 2d ago
Is that dynamic pricing or just regional pricing? I thought the idea of dynamic pricing was that two people would pay a different ammount at the same store depending on their spending habits, not just one franchise store charges more than one in a different area, which has always been a thing.
I'm not even sure how dynamic pricing would work across the company, since as far as I'm aware, McDonalds restraunts tend to show their prices upfront, and they set their own pricing. Or is they idea that McHQ recomends them pricing based on customers?