Papa Murphy’s will close up to 50 of its underperforming locations within the next six to nine months, parent company MTY Group announced on July 10 during its second-quarter earnings call, marking another significant contraction for the struggling take-and-bake pizza chain.
The closures are part of a broader restructuring in which MTY Group will shut 68 corporate-owned locations across its entire restaurant portfolio, which includes brands like Wetzel’s Pretzels and Cold Stone Creamery. The restaurants slated for closure have collectively lost more than $10 million over the past 12 months, MTY Group CEO and President Eric Lefebvre said on the earnings call.
“Their performance was for the most part deteriorating,” Lefebvre said. “This is an important step for MTY. The decision will reduce our store count in the near term, but we believe it is the right long-term action for the business. It will allow us to reduce losses, improve the quality of the corporate store portfolio, and focus our resources on locations and brands with stronger return potential.”
Papa Murphy’s has faced years of steady decline. The chain operated about 1,437 locations in 2018 but has contracted to roughly 1,000 stores today, representing a loss of more than 400 units over eight years. The store count fell from 1,168 in 2023 to 1,014 in 2025, according to the chain’s franchise disclosure documents.
MTY Group acquired Papa Murphy’s in 2019 for approximately $190 million, touting the chain’s unique take-and-bake concept and 35-year history as assets worth reviving. The turnaround effort has not succeeded. Lefebvre acknowledged that Papa Murphy’s, particularly in the United States, has been struggling more severely than other brands in MTY’s portfolio.
“Papa Murphy’s, certainly in the U.S., has been struggling more than our other brands as of recent. So that’s a significant weight on QSR,” Lefebvre said, referring to the quick-service restaurant segment. The closures will begin as soon as the week of July 13, with the company working systematically to protect staff, negotiate with landlords, and manage distribution issues. MTY may also close or sell additional stores in the future, Lefebvre indicated.
The Papa Murphy’s closures reflect broader turbulence in the pizza industry. Pizza Hut, Papa John’s, and other chains have announced significant closures in 2026 as Domino’s has increased its market share at competitors’ expense. The pizza market has grown increasingly competitive, with consumers gravitating toward delivery-focused chains over the take-and-bake model that Papa Murphy’s pioneered.
Sources
- MLive.com — Confirmed Papa Murphy’s will close up to 50 locations within six to nine months, MTY Group’s broader 68-store closure plan, $10 million in losses, and store count decline from 1,437 in 2018 to about 1,000 currently.
- Restaurant Dive — Provided details on the 68 corporate closures, six to nine month timeline, $10 million combined losses, store count decline from 1,168 in 2023 to 1,014 in 2025, and context on Papa Murphy’s U.S. struggles relative to other MTY brands.
