If we're already seeing dynamic burger pricing based on market rates, does McDonald's also plan on offering a burger derivative market so customers can hedge their pricing risk in case unforeseen events cause the burger price to skyrocket?
Maybe instead of spending money on AI to squeeze as much profit as possible you could just fix your self ordering kiosks to not suck? They are painfully slow to the point where you have to click things multiple times because it doesn't register and then when it does wake up it registers the second click on some unrelated thing that you have to undo. Plus half the time the card reader doesn't work so you have to pay at the counter anyways, which they don't staff so it takes forever to flag someone down.
Why are people upset, it’s obviously “stupid” for customers but Amazon has been doing this for ages, prices change multiple times per day and the only reason is that they choose the optimal price point where you will just so buy at Amazon and not elsewhere, AI is surely involved in that process. People are fine with it apparently as Amazon grows like crazy, so why not pay dynamic rates for our burgers too, why not for everything? There are only so many ways for companies to grow 10-20 % per year forever, expect a lot more craziness as many of them reach global market penetration where regular growth mechanisms get exhausted.
There was a Jon Stewart podcast on this a couple of weeks ago on Machine Learning and custom pricing. It was an illuminating one. It all looks like a lead up to big consumer action and lawsuit in the future. TBH, McDonald’s pricing might survive as it seems to charge the same for everyone at the same store.
A meal is a pretty simple fixed-cost item from a retail outlet, not a service with a complex set of dependencies and shifting requirements. The cost of the meal is predictable to the seller - dynamic pricing has only one purpose - gouging customers.
If SaaS/consulting/architectural firms are engaging in price gouging of their customers, that is not an argument to bring the same to the fast food market.
Counterpoint: Restaurants have ALWAYS had dynamic pricing. It is called "Happy Hour". Dynamic pricing for an eatery serves an important purpose besides just gouging the customer. It moves customer traffic away from the intense surge at standard breakfast, lunch and dinner times which is a hard problem for businesses to work around.
You DESERVE a discount for patronizing them during their slower periods.
Or do what I do and buy nothing but the occasional deeply discounted item in the app (free 10 piece McNuggets with $2 purchase, $1 breakfast sandwich, free fries [no purchase necessary]).
I will never give McDonald's money after they let Trump use McDonald's to mock Kamala Harris for working at McDonald's. And the food is terrible value for money.
If we're already seeing dynamic burger pricing based on market rates, does McDonald's also plan on offering a burger derivative market so customers can hedge their pricing risk in case unforeseen events cause the burger price to skyrocket?
I see a burger arbitrage opportunity where you purchase a burger at in-n-out and deliver it to mcdonalds customers.
Delightfully devilish, Seymour.
I often wonder if it's possible to organize to have people collude to refuse any price above breakeven.
Maybe instead of spending money on AI to squeeze as much profit as possible you could just fix your self ordering kiosks to not suck? They are painfully slow to the point where you have to click things multiple times because it doesn't register and then when it does wake up it registers the second click on some unrelated thing that you have to undo. Plus half the time the card reader doesn't work so you have to pay at the counter anyways, which they don't staff so it takes forever to flag someone down.
Probably every click has to round-trip to East Ratfrak.
Soon you'll need to bring your own agent to negotiate the price of your Big Mac.
Or you could just go somewhere with better food, better prices, and no AI.
Why are people upset, it’s obviously “stupid” for customers but Amazon has been doing this for ages, prices change multiple times per day and the only reason is that they choose the optimal price point where you will just so buy at Amazon and not elsewhere, AI is surely involved in that process. People are fine with it apparently as Amazon grows like crazy, so why not pay dynamic rates for our burgers too, why not for everything? There are only so many ways for companies to grow 10-20 % per year forever, expect a lot more craziness as many of them reach global market penetration where regular growth mechanisms get exhausted.
It's better for consumers to know what something costs in advance so they can have a mental model of the space and where to buy.
The fact that people are NPCs who make the tech giants like Amazon successful out of ignorance and despite their hostility is not a good thing.
There was a Jon Stewart podcast on this a couple of weeks ago on Machine Learning and custom pricing. It was an illuminating one. It all looks like a lead up to big consumer action and lawsuit in the future. TBH, McDonald’s pricing might survive as it seems to charge the same for everyone at the same store.
> One pricing factor supercharged by AI: an estimate of how much each store’s patrons are willing to pay.
How is this any different from businesses who do not have transparent pricing? E.g.: Enterprise SaaS; consultancy; architectural materials.
A meal is a pretty simple fixed-cost item from a retail outlet, not a service with a complex set of dependencies and shifting requirements. The cost of the meal is predictable to the seller - dynamic pricing has only one purpose - gouging customers.
If SaaS/consulting/architectural firms are engaging in price gouging of their customers, that is not an argument to bring the same to the fast food market.
Counterpoint: Restaurants have ALWAYS had dynamic pricing. It is called "Happy Hour". Dynamic pricing for an eatery serves an important purpose besides just gouging the customer. It moves customer traffic away from the intense surge at standard breakfast, lunch and dinner times which is a hard problem for businesses to work around.
You DESERVE a discount for patronizing them during their slower periods.
A Happy Hour is publicly priced in advance. Not so "dynamic".
A discount is quite literally the opposite of what's happening here.
There have ALWAYS been projectiles but when guns came along we had to treat guns differently. Scale and magnitude and context matter.
> Enterprise SaaS; consultancy
If McDonald's wants to buy me steak dinners and rounds of golf to sell me a burger, I'm down.
The only winning move is not to play
Or do what I do and buy nothing but the occasional deeply discounted item in the app (free 10 piece McNuggets with $2 purchase, $1 breakfast sandwich, free fries [no purchase necessary]).
why does this never result in the food getting cheaper.
I will never give McDonald's money after they let Trump use McDonald's to mock Kamala Harris for working at McDonald's. And the food is terrible value for money.