Papa Murphy's to Close Up to 50 Locations Amid Performance Review
MTY Group cites over $10 million in losses from underperforming stores as reason for the closures.
Papa Murphy's, the popular take-and-bake pizza chain, is set to close between 45 and 50 locations over the next six to nine months. The decision comes after a performance review by its Canadian franchisor and operator, MTY Group, which indicated significant financial losses from these underperforming outlets.
MTY Group CEO and President Eric Lefebvre stated that the affected stores have collectively lost over $10 million in the past 12 months. "The decision will reduce our store count in the near term, but we believe it is the right long-term action for the business," Lefebvre said. He added that the move will help reduce losses, improve the quality of the corporate store portfolio, and allow resources to be focused on locations and brands with stronger return potential.
The process of closing the stores is set to begin this week, with MTY Group aiming to manage the transition smoothly for staff, landlords, and distribution. Lefebvre indicated that further store disposals might occur as the company works to reduce its corporate store portfolio.
While Papa Murphy's is experiencing these closures, Lefebvre noted that other brands within MTY Group's extensive portfolio, which includes Wetzel's Pretzels, Cold Stone Creamery, and Pinkberry, are not facing similar magnitude of issues. However, he acknowledged that some other brands are also exposed and have initiatives planned.
The take-and-bake pizza segment has seen challenges, with Papa Murphy's store count decreasing from 1,168 in 2023 to 1,014 in 2025, though most of these were franchised units. The chain is known for its customizable, uncooked pizzas that customers take home to cook themselves.
This trend of closures extends to other pizza chains. Mountain Mike's Pizza operator filed for bankruptcy earlier this year, and Papa John's announced in February that hundreds of its underperforming locations would close by the end of 2027. Pizza Hut also revealed plans to close 250 locations as its parent company conducts a business review, with the possibility of the chain being sold.