Up to 50 Papa Murphy’s stores across the United States are closing, as announced by MTY Group, the pizza chain’s parent company. The closures are due to underperformance, leading to significant financial losses. This move is part of MTY Group’s broader restructuring plan affecting multiple restaurant brands, including Wetzel’s Pretzels and Cold Stone Creamery, with Papa Murphy’s facing the largest impact.
Overall, MTY Group will close 68 locations, which represent around 1 percent of its store base, as reported by Restaurant Dive. Other restaurant chains like Wendy’s, Papa John’s, and Pizza Hut have also announced significant store closures in efforts to improve profitability.
The closures occur as food prices rise and consumer preferences shift towards takeout and delivery options. Newsweek sought MTY Group’s comment on this matter.
Potential Impact on Regions
MTY Group has not published a list of which Papa Murphy’s stores will close. The closures primarily target company-owned locations rather than franchised ones, and MTY Group had not revealed the locations publicly by July 14.
According to its 2026 franchise disclosure document, there were 49 company-owned stores 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). MTY Group increased Papa Murphy’s store count as part of a turnaround attempt two years ago, from eight stores at the end of 2023 to 49 by 2025.
Reasons Behind the Closures
In a July earnings call, MTY Group CEO and President Eric Lefebvre informed investors that the selected 68 locations had collectively lost over $10 million in the past year, with generally declining performance.
Lefebvre stated, “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 emphasized that the closures would help reduce losses and enable the company to focus resources on locations with better returns.
Papa Murphy’s has been “struggling more” than other brands, according to Lefebvre. While other brands face challenges, Papa Murphy’s struggles are more pronounced.
The company’s 2026 franchise disclosure document showed Papa Murphy’s had 1,014 locations by the end of 2025, including 965 franchised and 49 company-owned units, a decrease from 1,168 in 2023.
Timeline for Closures
MTY Group stated that closures would occur over the next six to nine months. Lefebvre mentioned the first closure wave would begin the week of July 13. The company plans a gradual process to manage staffing, lease negotiations, and supply-chain considerations. MTY also suggested the possibility of selling or closing additional stores if operational adjustments are necessary.