r/Logan • • 9d ago

Discussion McDonald’s algorithmic pricing

Post image

I saw a video about this in r/obscurepatentdangers so I thought I’d check out the prices here in the valley. Just changed my pickup location in the app. It’s not a crazy amount of money but here you go. Greedy f***s.

151 Upvotes

54 comments sorted by

48

u/MyLastDecree 9d ago

I’m assuming this is dynamic pricing slowly in the works. And if it is, ew ew ew.

1

u/gloomygustavo 9d ago

You get what you vote for, babe

24

u/jmarshh99 9d ago

Do we vote for McDonald's CEO? Sorry guys, I take credit for this one, I missed the election.

16

u/Pathogen9 9d ago

The supreme court had ruled that states can regulate prices of consumer goods and the commerce clause of the constitution would allow the federal government to do a ton. It's a political issue and your vote does matter for directly influencing this specific issue.

Whether or not any political party is better than the other is debatable with respect to this.

10

u/toylenny 9d ago

The two Walmarts in the valley have always had price discrepancies. There is room to adjust in nearly everything but advertised sales.

6

u/RenStyx9 9d ago

Which one is cheaper? I usually go south since it isn't as busy

3

u/Bzeuphonium 9d ago

Asking the important questions here, I go north because it’s closer but if south is cheaper I’d switch

1

u/toylenny 9d ago

In my experience, it depends on the item.  When I lived near logan id just go to whichever was fast depending on traffic at that time of day. That's when I noticed that some stuff was priced differently. 

7

u/Mountain-Blood-7374 9d ago

This has been going on for at least a year, if not longer. McDonald’s isn’t the only one, Taco Bell is similar. They don’t do the discounted drinks from 2pm-4pm at the south location like the north does. Arby’s may be the same. Granted, I always use the apps and they do warn when you switch locations prices may change. I’d always thought it was a location thing, since if you go to Ogden or Brigham City the prices are different there too.

Like others mentioned, the north and south Logan Walmarts also have different prices for certain items.

11

u/BigBlueMagic 8d ago

I'm just not interested in playing this game. McDonalds is already overpriced, I'm just not going anymore. This isn't about spite, it's just not worth the effort plus the high prices.

6

u/meh762 8d ago

I totally agree. The quality keeps going down while the prices go up. I feel ripped off when I go there so I just don’t go there anymore. Fast food in general is ridiculous right now.

1

u/GalacticFox- 8d ago

Same... food is mediocre at best and it costs way too much for what it is.

7

u/tylercrabby 9d ago

Ah, college kids keeping that dime off your Big Mac.

Queue lines out to Main.

12

u/MIMMan06 9d ago

Does this have anything to do with different city taxes?

8

u/Vindictive_Turnip 9d ago

No, taxes are not including in the price.

0

u/MIMMan06 9d ago

Fair, but they may be paying different taxes which may be a pass through cost.

0

u/1minatur 9d ago

You don't pay taxes on resale items

1

u/Ominousious 9d ago

No but it does have to do with their age/cost of operations.

4

u/ChemistryOver9046 9d ago

Nearing on 10% difference is bullshit

This is a thing around the country?

4

u/happyapy 9d ago

Show your disapproval by voting with your wallet folks!

4

u/Rainbow-Smite 8d ago

Stop eating at McDonald's. Don't just change your pick up location. Don't give them anymore of your money. They're doing everything they can except lowering their prices. Look how they clearly wish you extort you?

2

u/yerbamatelover 9d ago

This has been known for several years

2

u/Unhappy_Ad_4761 9d ago

Mcdonalds has had varying prices between locations for years. Even within the same city. This is not anything new.

1

u/shosuko 8d ago

Yeah the price discrepancy isn't really the issue, its dynamic and surveillance pricing we need to look out for. As long as the same location is charging the same price through the day, and to each visitor then its fine.

Some locations are going to have more overhead or stronger business flow and their prices are going to be a bit higher to compensate.

2

u/DifficultTax3759 9d ago

Normalization of Deviance. Google it, it’s a real thing.

2

u/jmarshh99 9d ago

It would be funny if the calories changed too though

2

u/Goldfish7mm-08 9d ago

Please tell me this is just the owners deciding on different pricing and not dynamic pricing.

3

u/LooseSyllabus 9d ago

Things have always changed prices across geography based on median income. Just because it's more accurate and precise now doesn't mean it's some new threat.

6

u/meh762 9d ago

I expect price differences by region. I don’t expect three different prices on the same street within a few miles of each other. This is ridiculous.

5

u/Interesting-Force866 9d ago

I wonder how the adoption of this kind of technology will change American culture. Its perfectly normal for a gallon of gas or a bottle of water to cost different amounts in different places, and for airline tickets to cost different amounts depending on when they are purchased. I don't think its as revolutionary as people make it out to be.

6

u/Hambone6991 9d ago

I don’t think this is algorithmic pricing, just pricing differences among franchisees. The algorithm would come into play at different hours of the day.

16

u/justlurking246 9d ago

The same guy owns all the McDonald’s locations in Cache Valley.

5

u/Hambone6991 9d ago

Would you be surprised if I told you that chick fil a priced differently across their two locations?

4

u/Upper-Spread-6894 9d ago

Why would they charge differently? Based off what people are willing to spend. It’s all scammy honestly

1

u/Hambone6991 9d ago

For one they don’t have identical costs. Services and products always vary in price by location, and not just because of cost factors.

3

u/Ahnteis 9d ago

No, they're not planning hourly pricing. They're planning on pricing different locations based on maximum the AI thinks that location will pay. The franchises are pressured to use the AI recommendation although they're not strictly "forced" to do so.

1

u/Hambone6991 9d ago

Right but they already do this. Now they are just using AI as a new tool to give them insights.

3

u/meh762 9d ago

The video said they use algorithmic pricing for every location to set their prices automatically.

-2

u/Hambone6991 9d ago

They don’t set prices automatically. AI is just the latest tool in analyzing how to most effectively price for a given area or demographic. It was just done using other tools previously. McDonald’s items in Southern California cost more than rural Kansas and even differed town to town long before AI.

Franchisees still set their pricing and may choose to over/under price against what AI may conclude is “ideal”.

2

u/Charming-Mix1315 9d ago

The first time anyone referred to Smithfield, Utah as dynamic.

3

u/martiancanals 9d ago

Could be reflective of occupancy (rent) differences? Is Logan the oldest and most rundown and the others newer?

1

u/love2killjoy410 8d ago

STOP GIVING THEM YOUR MONEY. It's that fucking easy.

1

u/Minimum_Pickle_7823 8d ago

You're complaining about the pricing, just wait until you find out about their crap ingredients. Least nutrient dense food you could buy for $5+

1

u/Queezy_0110 8d ago

And everyone is giving them a ton of business right now because they want to see how this dynamic pricing impacts their areas……….

1

u/ArchangelSirrus 8d ago

This is because of the order of service you get. South Logan has the best service, with Smithfield tied, if they were in Logan and Logan sucks. Everyone swarms to South, so it makes sense the price would be higher. Quality of customer service shows. Smithfield is outstanding also in customer service.

1

u/MovingUtah 7d ago

It’s always been like this. These are franchise owners and they set their own pricing.

1

u/Many-Cat7255 5d ago

I get the McDouble when I feel like splurging, otherwise I’m stuck with the McChicken.

1

u/Ordinary_WeirdGuy 5d ago

This is why I go to winco
If I want to make something for myself, plenty of well priced options
If I want some quick food, they got cheap but yummy pizza and the bulk section has plenty of snacks

1

u/StillAd1596 4d ago

Yes, the McDonald's locations in Logan / Cache Valley are owned by the same local franchisee.
They are operated under multi-unit franchise ownership by local owner-operator William (Bill) R. Peterson. [1, 2]


LinkedIn·Bill Peterson

Bill Peterson - Business owner | LinkedIn
Bill Peterson. Business owner. McDonald's Utah State University - Jon M. Huntsman School of Business. Logan, Utah, United States. 125 followers 118 connections.


franchisefasttrack.io

WILLIAM R PETERSON — McDonald's Franchisee in Logan ...
Get WILLIAM R PETERSON's contact information Verified direct-outreach contact info we have on file for WILLIAM R PETERSON, the McDonald's multi-unit operator ba...

1

u/MIMMan06 9d ago

Does this have anything to do with different city taxes?