Papa Murphy's to Close Up to 50 Stores in the U.S.

MTY Food Group, the Canadian conglomerate that owns Papa Murphy's, plans to close as many as 50 of the "take and bake" pizza chain's company-owned locations in the United States. This decision comes as part of a larger plan to shutter 68 underperforming corporate stores across all of MTY's brands.

The announcement was made following MTY Food Group's release of its second-quarter earnings, which revealed an 8.2% year-over-year decline in revenue. The company attributed this financial dip to lower revenue from corporate stores, directly linked to a reduction in their number.

Papa Murphy's, known for its unique model where customers pick up uncooked pizzas to bake at home, is a significant brand within MTY's portfolio. The chain operates 1,014 locations across 34 U.S. states, with 49 of these being company-owned.

MTY's CEO, Eric Lefebvre, stated that the stores targeted for closure were performing significantly worse than average. "Sulkemispäätökset perustuivat suorituskykyyn, tulevaisuuden näkymiin ja kunkin toimipisteen taloudelliseen profiiliin," Lefebvre explained, according to a PitchBook transcript. He further commented on the intense competition within the U.S. pizza market, noting that consumers often prioritize the lowest price, impacting Papa Murphy's customer loyalty.

While specific locations for the closures have not been detailed, MTY expects the process to take six to nine months, with some closures beginning immediately. The company aims to enhance the profitability of its remaining operations and support its franchisees.