Papa Murphy's, the US take-and-bake pizza chain, is set to close between 45 and 50 underperforming locations as its parent company, MTY Food Group, restructures its restaurant portfolio and focuses on improving profitability across its brands.
The closures are part of a wider plan by MTY Group to shut 68 corporate-owned restaurants across its portfolio over the next six to nine months. The first wave of Papa Murphy's closures is expected to begin immediately, with the process starting during the week of 13 July, 2026, according to The Independent.
MTY Group President and CEO Eric Lefebvre said the decision followed a detailed review of store performance. The affected Papa Murphy's locations were identified as outlets struggling to meet financial expectations, with the company saying the move would allow resources to be redirected towards stronger-performing stores and brands with better long-term potential.
The financial impact of the struggling locations has been significant. The corporate-owned Papa Murphy's stores targeted for closure collectively recorded losses of more than $10 million over the past year, prompting the company to take action to reduce costs and improve operational efficiency.
The closures will significantly reduce Papa Murphy's corporate presence. The chain had only 49 company-owned locations remaining at the end of 2025, with the majority of its more than 1,000-store network operated by franchisees. The planned shutdowns will effectively eliminate almost all of the brand's corporate-operated restaurants, according to the report.
Papa Murphy's operates under a “take-and-bake” model, where customers purchase prepared pizzas and bake them at home. While the concept helped differentiate the brand from traditional pizza chains, changing consumer habits and increasing competition from takeaway and delivery-focused rivals have created challenges.
Lefebvre said the pizza market has become highly promotion-driven, with customers increasingly choosing brands based on discounts rather than loyalty. He noted that weak customer attachment has made it difficult for operators to maintain consistent sales in the current environment.
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The closures reflect broader challenges facing the restaurant industry, including changing consumer preferences, rising competition and pressure on profitability. MTY Group said further adjustments could be considered if store performance does not improve, while the company continues to prioritise investments in healthier operations.
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