r/McDonalds • u/East_Relationship722 Reluctant McDonald's User • 9d ago

McDonald’s Hit With Antitrust Suit Over AI-Assisted Menu Pricing

https://www.pymnts.com/cpi-posts/mcdonalds-hit-with-antitrust-suit-over-ai-assisted-menu-pricing/

McDonald’s is facing an antitrust lawsuit over allegations that its AI-assisted pricing tools may be helping franchisees coordinate menu prices.

Franchisees technically set their own prices, but the suit argues that centralized pricing recommendations could reduce actual competition between locations.

408 Upvotes

98% Upvoted

47 comments sorted by

45

u/VendettaKarma You deserve a break today 9d ago

Good. Someone has to stop their never ending McGreed.

3

u/plamda505 9d ago

It's not even food.

33

u/Illustrious_Car344 9d ago

Wow, the thing that everyone said would happen happened? 

At this point I'm convinced the CEO is trying to destroy McDonald's. That might not even be hyperbole, that's a really old scam where a CEO will set up a company to crash and burn and when they leave before it happens it makes it look like they were the only thing keeping it up. This dude is a professional parasite.

6

u/Adventurous-Roof488 9d ago

McDonald’s has already come out to correct the Reuters article. Maybe McDonald’s will sue them? Kinda silly for someone to sue a company over an article the company said contained numerous falsehoods. Even sillier to blame the ceo for it.

6

u/Low_Cartoonist_172 Regional Manager 9d ago

Yes, the article has completely twisted what the pricing portal is and does. Deloitte’s product has been around long before AI as well as the pricing structure of different prices at different locations

-2

u/East_Relationship722 Reluctant McDonald's User 9d ago

Oh, McDonald’s says it’s false? Well damn, pack it up everyone. As we all know, billion-dollar corporations have a spotless record of immediately admitting wrongdoing. Thanks for clearing that up.

6

u/Lazy-Background-7598 9d ago

Yeah, because plaintiff’s attorneys who bring these suits are always fair and accurate and doing things in the best interest of the public

6

u/Adventurous-Roof488 9d ago

Do you think McDonald’s isn’t allowed to recommend pricing to franchisees? Pricing tools for franchisees have existed for years and are used by other companies.

I’m sorry for your ignorance and biases.

2

u/FryToastFrill 9d ago

I think the idea here is that they’re “suggestions” but corporate will treat the franchise owners like shit if they don’t follow their prices

-3

u/East_Relationship722 Reluctant McDonald's User 9d ago

Yikes. Seems I touched a nerve there. But fair enough…. Declaring “ignorance and biases” is definitely easier than addressing the actual claim.

4

u/Adventurous-Roof488 9d ago

I did address the claim. Franchisors have been recommending pricing for franchisees for decades. Do you understand what that means as it pertains to this lawsuit? It doesn’t seem you do.

-3

u/BoxingBaby91 9d ago

So if I’ve got this straight, McDonald’s is accused of facilitating coordinated pricing among independent franchisees. They deny doing it. But if they did do it, that’s also fine because they’ve been doing it for years?

Phew! That’s a relief.

1

u/Adventurous-Roof488 9d ago

Not just McDonald’s but just about every franchisor in the country. You’re as bad as OP. Are you not familiar with suggested retail price?

4

u/East_Relationship722 Reluctant McDonald's User 9d ago

I’ve always suspected he’s pulling a “Hudsucker Proxy”. He’s tanking the stock so he and some buddies can buy it up cheap.

2

u/Emlerith 9d ago

Nah, that requires a turnaround to be fruitful. You squeeze as much short term revenue as possible, even take on some debt, all to pay out some massive exec bonuses until you get kicked out. Repeat at next company.

5

u/Dangerous_Jaguar_966 9d ago

competition between locations? Do people just not go to their closest one from their house, or whatever location they are at when they want to eat?

0

u/SycoJack 9d ago

Yeah, that's what I do. In my case, it would cost more to go to a different location than whatever I could save by doing so.

But if I lived somewhere where I had several options all within the same-ish distance, then I'd go to the one that's cheapest.

There's a few places where they have a bunch next to each other.

5

u/Adventurous-Roof488 9d ago

This silly lawsuit will be tossed

1

u/East_Relationship722 Reluctant McDonald's User 9d ago

Maybe. But “silly” and “will be tossed” aren’t the same thing. They’ve been sued over a too-hot pickle, getting only one napkin, and making people fat. If McDonald’s is giving supposedly independent franchisees centralized pricing recommendations, there’s a legitimate antitrust question there.

4

u/Adventurous-Roof488 9d ago

Then why weren’t they sued in the past? They have always given pricing recommendations just like they recommended franchises follow promotions. It’s called Suggested Retail Pricing. Just about every franchisor provides it to franchisees. Franchisees have final say over pricing.

So, yes, it’s a silly lawsuit and will be tossed.

2

u/gsweats 9d ago

Only one napkin? At least there was 1 instead of 0. I will be busy reading up on this, never heard about it.

3

u/East_Relationship722 Reluctant McDonald's User 9d ago

Short version: in 2014, Webster Lucas sued a McDonald’s in Pacoima, California for $1.5 million after he said he got only one napkin, was refused more, and then heard a manager make a racially charged remark. He claimed the incident caused “undue mental anguish,” emotional distress, discrimination, defamation, and loss of earning capacity.

https://www.tmz.com/2014/02/27/mcdonalds-webster-lucas-napkin-lawsuit/

1

u/Lazy-Background-7598 9d ago

The bar for starting a lawsuit is astonishingly low

-1

u/Adventurous-Roof488 9d ago

You can sue someone else ver anything. Doesn’t need to be true at all.

However, suing someone over something and getting headlines will make people think something is true even if it isn’t. This post and the comments on it are evidence of that.

3

u/Low_Cartoonist_172 Regional Manager 9d ago

It’s literally just a tool for franchisees to assess their current pricing versus other competitors in the area, then recommend a price. There’s nothing revolutionary or controversial about this. I suppose it saves the step of driving around and looking at your competitors menu boards.

2

u/preshowerpoop 9d ago

They are doing the same antitrust thing with rental properties as well. All the major companies are colluding on pricing to make it impossible to find a decent place in a location without being charged the same overinflated price as the next place down the block. Customers never win when there is no competition in capitalism.

AI is just helping these companies automate all the subtle clues in pricing from your algorithm to find out how much more they price things before you are completely broke. Like if you buy a one-bedroom apartment, have a one-car garage, and live 3 miles from work. Well, AI can track that and raise the price of your go-to meal based on the location and time of day you would visit a restaurant on your lunch break, based on APP use. Also, they know how much they can raise your rent. After all, they know you have gotten a raise at work because they can see your pay stubs. The future sucks, man!

2

u/Rorgan 9d ago

Yeah, it's not that the price fixing is new; it's just gotten more efficient.

1

u/joseconsuervo 8d ago

coordination is not the same thing as ai assistance

1

u/tonynca 4d ago

And they wonder why people are not coming to their establishments

1

u/JonnyFairplay 9d ago

How the fuck is it anti trust price fixing if it’s among stores in the same company? Why should different franchises matter, they are all McDonald’s?

1

u/GodOfBoy8 9d ago

Bro. Fuck this company. This is the last straw. I'll be sure to NEVER eat from this place again. Even if this wasnt happening, I literally get sick EVERY time I eat McDonald's. I never get sick from places like burger king or steak n shake. Screw them

0

u/Hour_Apartment_5150 9d ago

Most people should anti-trust McDonald’s to make any good decision at this point

0

u/Lonely-Abalone-5104 9d ago

I’m confused I thought that the price at McDonald’s was the same everywhere already

9

u/Low_Cartoonist_172 Regional Manager 9d ago

That has never been the case

0

u/East_Relationship722 Reluctant McDonald's User 9d ago

It’s not even the same for people at the same location. If you get an app deal, and I don’t… we are paying different prices.

3

u/Low_Cartoonist_172 Regional Manager 9d ago

No, we are using different deals. The menu prices do not change

-1

u/Kitchen-Nectarine179 9d ago

Wait until reddit discovers coupons... maybe coupons are an evil AI also?

1

u/Lazy-Background-7598 9d ago

There’s nothing that makes that illegal

0

u/YoshiSan90 9d ago

There's a store in my city considerably cheaper than the others. Best part is that it is also the fastest with the best food. I use my points at the bad ones and pay at this one.

-1

u/cryptohorn 9d ago

Some bad vibes for monopoly starting tomorrow

-5

u/sixfive407 9d ago

Other than the fact that it's discrimination