McDonald’s is being sued over its prices. A customer in Illinois filed a potential class-action lawsuit against the fast-food giant over its alleged use of AI to recommend prices. The lawsuit says that the company has pressured franchisees to follow its recommendations, which violates antitrust law because operators are supposed to be competitors. It also blames McDonald’s price increases on the AI tool. McDonald’s said there are numerous inaccuracies in the lawsuit, which follows a report on its pricing that the company called “wrong.” The company says it plans to fight the lawsuit.
Uber is buying ezCater. The delivery company plans to acquire the online corporate catering service for $2.3 billion in cash. ezCater is the largest such catering provider in the U.S., with a selection of more than 140,000 restaurants. Uber will bring ezCater to the Uber Eats marketplace as it looks to grow its business. The companies said the deal will help bring more big-ticket orders to restaurants: The average ezCater order is more than $400.
Bank of America recently released a report showing that C-store giant Casey’s is likely taking share from some QSR pizza players, including and especially Pizza Hut. So what happens to the struggling pizza category when a much bigger C-store chain upgrades its pizza as well? 7-Eleven recently did just that, introducing an airier, bubblier crust across its approximately 12,700 locations in response to consumer research. In an interview, Brandon Brown, senior vice president, Fresh Foods and Beverages, said product innovation is a key focus area for the chain, which has also recently upgraded its wings, burgers, and beverages. The pizza upgrade comes as Technomic reports that C-stores are the biggest competitive threat to QSRs.
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