MTY Group, the parent company of Papa Murphy’s, announced that up to 50 stores of the pizza chain are set to close across the United States. This decision is due to the underperformance of these locations, leading to significant financial losses for the company.
Restructuring Effort
This closure is part of a broader restructuring plan that impacts multiple restaurant brands, such as Wetzel’s Pretzels and Cold Stone Creamery. Papa Murphy’s, however, will experience the largest share of closures. In total, MTY Group plans to close 68 locations, which represent about 1% of its store base according to Restaurant Dive.
Other restaurant brands are also facing challenges this year. Companies like Wendy’s, Papa John’s, and Pizza Hut have similarly announced major closures as part of their profitability strategies.
Impact of Changing Consumer Trends
These announcements come at a time when food prices are rising and consumer trends are shifting. More customers are opting for takeout and delivery over dine-in experiences, a change affecting many in the restaurant industry.
Newsweek reached out to MTY Group for comments on this development.
States Potentially Affected
MTY Group has not released a specific list of Papa Murphy’s locations set to close. The closures mainly concern company-owned stores rather than franchises. As of July 14, locations had not been publicly identified.
According to the company’s 2026 franchise disclosure document, there were 49 company-owned Papa Murphy’s locations spread across 10 states at the end of 2025: Alabama (3), Arkansas (2), Georgia (3), Indiana (8), Michigan (6), Minnesota (1), Missouri (3), North Carolina (7), Tennessee (15), and Washington (1).
Reasons for Store Closures
MTY Group CEO and President Eric Lefebvre discussed the decision during a July earnings call. He noted that the 68 locations picked for closure collectively lost over $10 million in the previous 12 months, with their performance continuing to deteriorate.
Lefebvre explained, “The decision will reduce our store count in the near term, but we believe it is the right long-term action for the business.” He added that this would allow the company to concentrate resources on more profitable locations.
He further mentioned that Papa Murphy’s faces greater challenges compared to other brands within MTY Group.
Timeline for Closures
The process of closing the stores is expected to occur over the next six to nine months. The first wave started during the week of July 13. The company plans to manage staffing, lease negotiations, and supply-chain considerations gradually.
MTY also indicated that additional closures or sales of stores could happen in the future if necessary adjustments to their corporate portfolio are required.