MTY Food Group, the parent company of Papa Murphy’s, announced plans to shutter between 45 and 50 of its take-and-bake pizza locations due to ongoing challenges in the highly competitive pizza market.
MTY Food Group CEO Eric Lefebvre cited the need to reallocate resources to more viable markets as the primary reason for the closures. (Getty Images)
Papa Murphy’s, known for its customizable take-and-bake pizzas, operates under a mix of corporate-owned and franchised models. Following a strategic review, the company determined that three clusters of underperforming stores would not yield the expected turnaround despite nearly two years of operational improvements.
The chain, originally founded in Vancouver, Washington, faces intense competition from both traditional pizza outlets and delivery-focused concepts. (Getty Images)
CEO Eric Lefebvre emphasized that the closures, which will occur over six to nine months, represent a calculated long-term strategy. While Papa Murphy’s accounts for a significant portion of the 68 underperforming corporate-owned stores being closed systemwide, other brands within MTY’s portfolio are also impacted. The closed stores collectively lost over $10 million in the past year.
Lefebvre noted the company is prioritizing employee transitions, landlord negotiations, and supply chain adjustments during the shutdown process. Additional store closures or sales may be considered as part of broader efforts to streamline MTY’s corporate retail portfolio.
