Price Variations for Big Macs Across McDonald’s Locations in California

Think that a Big Mac is priced the same at every McDonald’s? Well, that’s not quite the case.

In California, customers are realizing that the cost of their go-to fast-food meals can vary from one location to another—sometimes by a dollar or even more. This is happening as McDonald’s increasingly utilizes AI to help franchisees set prices based on what local customers might be willing to spend.

The fast-food giant has been encouraging franchisees to implement an AI-driven algorithm that analyses data from McDonald’s approximately 14,000 outlets to determine what customers in a specific area are inclined to pay.

In Fresno, residents don’t need to travel far to notice these price discrepancies.

For instance, at the McDonald’s located at 4505 E. Cesar Chavez Blvd., a Big Mac is priced at $5.69, according to the company’s mobile app from September. Meanwhile, if you drive just 1.3 miles to the branch at 4898 E. Kings Canyon Road, that same burger will set you back $6.69. That’s a dollar difference for the identical sandwich.

These price disparities aren’t exclusive to the Big Mac. For example, an M&M McFlurry costs $4.69 at the cheaper location compared to $5.19 at the other branch. Similarly, a Deluxe McCrispy is $5.99 at 5645 E. Kings Canyon Road, whereas it goes for $6.49 at the Kings Canyon Road branch. The Deluxe Spicy McCrispy also shows differences in pricing, listed at $6.79 on Cesar Chavez Blvd and $6.99 at Kings Canyon.

It’s unclear how much of the price variation is attributed to AI suggestions versus the decisions made by individual franchise owners. Ultimately, franchisees have the final say in setting their menu prices.

Fresno local Adam Ramos has figured it out: check the app and, if needed, drive a bit further. He noticed the price difference despite living farther from the cheaper Cesar Chavez location and decided the extra drive was worth it.

“When you order the same thing, sometimes it could be a dollar different and sometimes just a few cents more,” Ramos shared.

Gabriel Corral-Cardenas, who chose the Chavez Boulevard spot because it’s closer to his workplace, was unaware that McDonald’s prices could vary so much.

“If it’s cheaper here, that’s a better deal for customers,” he noted and mentioned he plans to check the app next time he orders, especially given that fast food prices have increased significantly over the years.

Another customer, Vanessa Aguilar, who often visits the Cesar Chavez location, confirmed it’s the cheapest in town, having noticed varying prices at other nearby restaurants. “Everything’s very expensive right now,” she remarked, emphasizing that it’s worth it to opt for the cheaper McDonald’s.

However, customers at the more expensive locations were surprised to find out that prices differ. Leticia Oliva, who lives in Fresno, had no idea that the Kings Canyon road McDonald’s was pricier and felt it wasn’t fair.

“I didn’t even know that until you told me,” Oliva said, admitting that she’d likely be less inclined to return to a location that charges more.

Another patron at the pricier branch seemed equally uninformed about the pricing differences, stating he had always assumed uniformity among the restaurants.

Franchise owners informed Reuters that the use of the pricing algorithm has increased the discrepancies in prices for identical items across different locations—even within the same neighborhoods.

This AI system also considers the prices of competing restaurants like Wendy’s and Burger King, though those chains claim they do not use AI for their pricing strategies.

McDonald’s has pushed back against the notion that AI is covertly setting prices, arguing that the report by Reuters was misleading.

The company clarified that its algorithm doesn’t adjust prices dynamically but rather gives recommendations that franchisees have the option to accept or reject.

“These speculative claims attempt to paint a standard business practice as something controversial. AI does not set the price of a Big Mac or any menu item,” a spokesperson explained.

As concerns about AI-driven pricing strategies grow among consumers, they are becoming more cautious about such practices, especially dynamic pricing that adjusts based on demand.

Notably, Wendy’s had to quickly backtrack from plans to try dynamic pricing after customer backlash in 2024. Similarly, Instacart faced criticism regarding varied pricing for the same products ordered simultaneously from the same store, ultimately discontinuing that program.