Papa Murphy’s Faces Major Store Closures Amid Financial Restructuring

Up to 50 Papa Murphy’s stores will be closing across the United States, as announced by the pizza chain’s parent company, MTY Group. The closures stem from underperformance that has resulted in notable financial losses. This decision forms part of a wider restructuring effort impacting various restaurant brands, including Wetzel’s Pretzels and Cold Stone Creamery. Nevertheless, Papa Murphy’s will experience the largest share of these closures.

Overall, 68 locations are planned for closure, accounting for roughly 1 percent of MTY’s store base, according to Restaurant Dive. The restaurant industry has seen numerous companies struggling this year, such as Wendy’s, Papa Johns, and Pizza Hut, all announcing significant closures in pursuit of profitability.

Soaring food prices and shifting consumer preferences towards takeout and delivery over dine-in experiences have influenced these changes. Attempts to contact MTY Group for further comment have been made by Newsweek via email.

Potential Impact on States

MTY Group hasn’t publicly provided a list of Papa Murphy’s stores set for closure. The planned closures primarily concern company-owned stores, as opposed to franchised ones. As of July 14, MTY Group had not publicly disclosed the locations.

According to the franchise disclosure document for 2026, there were 49 company-owned stores across 10 states by 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 had acquired several Papa Murphy’s stores in a revival attempt two years prior. The store count increased from eight in 2023 to 44 in 2024, ultimately reaching 49 in 2025.

Reasons Behind Store Closures

During a July earnings call, MTY Group CEO and President Eric Lefebvre revealed that the 68 stores earmarked for closure had combined losses exceeding $10 million over the previous year. Their performance continued to worsen.

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 focus resources on locations with better return potentials.

Papa Murphy’s has been “struggling more” compared to other brands, Lefebvre noted. While other brands face challenges, they don’t reach the scale of Papa Murphy’s difficulties.

The franchise disclosure document for 2026 details that Papa Murphy’s had 1,014 locations by the end of 2025, comprised of 965 franchised outlets and 49 company-owned units, which decreased from 1,168 in 2023.

Timeline for Closures

MTY Group expects the closure process to unfold over six to nine months. Lefebvre mentioned that the initial wave would commence during the week of July 13. Gradual implementation will be critical to manage staffing, lease negotiations, and supply-chain factors. MTY has also hinted that further store sales or closures might occur if necessary adjustments are required.

Meditations and details about this story reach out to editors, John Fitzpatrick and Dave Siminoff at Newsweek.