MTY Food Group, the parent company behind the popular take-and-bake pizza chain, is rolling out a restructuring plan that includes closing up to 50 corporate-owned locations throughout 2026.
These Papa Murphy Pizza Store Closures arrive as the company navigates a period of cooling consumer traffic and mounting overhead costs across the North American retail food landscape.
Key Takeaways
- MTY Food Group revealed plans to shutter roughly 50 corporate-owned Papa Murphy’s locations during the second half of 2026 as part of a wider corporate restructuring effort.
- The decision follows a challenging second quarter in 2026 where the company reported a collective same-store sales decline of 2.1 percent across its various brands.
- These specific closures are limited to the North American market as the take-and-bake pizza chain currently maintains no physical operations in the UK.
- Management expects the closure process for underperforming corporate assets to continue over the next six to nine months to improve long-term financial stability.
What Does MTY Food Group Confirm About Restaurant Closures?
MTY Food Group has confirmed that 68 corporate-owned locations across its entire brand portfolio, of which 45 to 50 are Papa Murphy’s, will close over the next six to nine months as the company pivots to support its healthier, high-performing franchise network.
Management has clarified that this is a long-term strategic move to improve the health of the corporate store portfolio. While the number of closures is significant, it represents only a small portion of the Papa Murphy’s network, which currently exceeds 1,000 locations.
Why Are Papa Murphy Pizza Store Closures Happening?
Papa Murphy’s is phasing out up to 50 corporate-owned stores to mitigate financial losses at underperforming sites, counteract rising overhead, and address a 2.1% dip in same-store sales driven by fierce competition and evolving consumer habits in the North American quick-service restaurant (QSR) space.
MTY Food Group leadership, including CEO Eric Lefebvre, described the move as a disciplined clean-up of assets rather than a total brand liquidation. The decision was driven by:
- Asset Performance: Many of the targeted locations were corporate-owned sites that had been repossessed from franchisees and failed to return to profitability despite two years of turnaround efforts.
- Challenging Consumer Environment: A tough economic climate has made consumers more price-sensitive, with lower loyalty toward premium pizza brands compared to discount-heavy competitors and third-party delivery services.
- Operational Costs: Persistent food inflation, specifically for protein costs like beef and chicken, has significantly compressed profit margins, making it difficult for the company to justify keeping certain sites open.
Evolution of Papa Murphy’s Pizza
Papa Murphy’s was formed through the consolidation of two distinct take-and-bake concepts:
| Period | Milestone / Development |
| 1981–1984 | Origins: Papa Aldo’s Pizza (1981) founded in Oregon; Murphy’s Pizza (1984) founded in California. |
| 1995 | Consolidation: Entrepreneur Terry Collins merged both brands to launch the unified Papa Murphy’s identity. |
| 1999 | Growth Phase: Rapid expansion reaches 500 units; brand becomes the 5th largest U.S. pizza chain. |
| 2019 | Acquisition: MTY Food Group acquires the Papa Murphy’s brand. |
| 2016–2025 | Market Adjustment: Total store count shifts from over 1,500 (2016) to just over 1,000 (late 2025). |
Which Papa Murphy’s Pizza Stores Are Closing?
MTY Food Group has not released a specific list of the 50 addresses slated for closure, as the decision process is ongoing based on individual site performance.
The affected units are exclusively corporate-owned; the vast majority of the Papa Murphy’s network (over 960 locations) remains franchised and is not subject to this specific restructuring.
Where Can You See the Other Alternate Papa Murphy’s Pizza Stores?
Since the majority of Papa Murphy’s locations are franchised and unaffected by this corporate restructuring, most stores remain open for business. You can find operational locations using the following resources:
- Official Store Locator: Visit the Papa Murphy’s website and use their built-in store locator tool by entering your zip code or city.
- Mobile App: The official Papa Murphy’s mobile app provides real-time access to nearby open locations.
- Mapping Services: Use Google Maps or Apple Maps and search Papa Murphy’s near me to view current store hours, ratings, and directions for your local area.
Financial Context and Revenue Impact
The financial environment for pizza chains in 2026 has been defined by intense competition and a divergence in consumer spending habits.
MTY Food Group’s leadership, specifically CEO Eric Lefebvre, noted that while consumers are still purchasing food, they are proving harder to attract to physical storefronts compared to previous fiscal years.
| Metric | Context (2026) |
| Total Closures | 68 corporate restaurants planned |
| Papa Murphy’s Impact | 45 to 50 locations |
| Same-Store Sales | Declined 2.1% (Company-wide) |
| Estimated Cost | £5.80–£6.96 Million GBP for closures |
These financial pressures are compounded by food inflation, particularly concerning the cost of proteins like beef and chicken, which have placed significant strain on operating margins.
Evaluating the Take-and-Bake Pizza Business Model
The Take-and-Bake model, where customers finish the cooking process at home, currently faces unique headwinds compared to the Hot-Delivery model.
- Take-and-Bake Model: Offers lower overhead by avoiding delivery fleets, but faces intense competition from grocery store frozen options.
- Traditional Hot-Delivery: Offers high convenience but is increasingly vulnerable to high logistics costs and the predatory pricing of third-party delivery aggregators.
| Feature | Take-and-Bake Model | Traditional Hot-Delivery |
| Consumption | Requires customer oven time | Ready-to-eat upon arrival |
| Cost Basis | Lower overhead (no delivery fleet) | High logistics/delivery cost |
| Convenience | Variable (prep required) | High (immediate) |
| Competition | Grocery store frozen options | Massive quick-service chains |
In practice, when observing the pizza industry, heavy discounting from major delivery aggregators has made it difficult for specialty concepts like Papa Murphy’s to maintain their value proposition during periods of economic tightening.
How to Navigate Corporate Brand Contraction?
For business analysts and investors monitoring the quick-service restaurant (QSR) space, the process of corporate restructuring typically follows a standard operational lifecycle.
- Financial Audit: Assess performance of every corporate-owned location against set revenue targets.
- Market Viability Check: Determine if local market demand can support the specific business model.
- Lease Negotiation: Evaluate current rent agreements and overhead costs.
- Operational Review: Decide if the location is underperforming due to management or external market factors.
- Divestment Strategy: Close or sell locations where the path to profitability is no longer feasible.
- Franchisee Support: Pivot resources toward remaining, high-performing franchise units to maintain brand health.
Strategic Analysis of Corporate Retail Trends
The current wave of closures is part of a broader industry pattern, mirroring trends seen in other sectors where brands are restructuring to survive shifting demand.
- Food Inflation: Rising costs of core ingredients continue to pressure margins.
- Third-Party Aggregators: Shift in consumer spending toward delivery apps has impacted walk-in traffic.
- Portfolio Optimisation: Many companies, including those involved in UK store closures, are moving away from corporate ownership to reduce operational liability.
When reviewing decisions of this magnitude, it is common for major chains to use underperformance as a catch-all term that includes lease expirations, labor availability, and local competition.
Conclusion
The restructuring of Papa Murphy’s serves as a case study in corporate agility within the QSR industry. By shedding underperforming assets, the parent company, MTY Food Group, is attempting to stabilise its financial position in an increasingly competitive market.
For observers in the UK and abroad, this serves as a reminder that major global brands are constantly navigating the delicate balance between market saturation and operational efficiency.
Moving forward, the success of the remaining Papa Murphy’s network will depend on its ability to compete with both low-cost frozen alternatives and the high-convenience delivery sector.
Disclaimer: This information is based on public corporate announcements as of July 2026; please verify specific local store status directly through official channels.
FAQ
Are all Papa Murphy’s locations closing?
No. MTY Food Group is closing up to 50 corporate-owned locations. This represents a small fraction of the total network, and the brand continues to operate hundreds of other stores across North America.
Is Papa Murphy’s pizza frozen?
No. The brand distinguishes itself through its Take-and-Bake model, which uses fresh, refrigerated ingredients rather than frozen ones. This remains a core part of their marketing identity.
Why did so many Papa Murphy’s close?
The closures are driven by underperformance, increased food costs, and a challenging consumer environment that has shifted toward heavy discounting from competitors and third-party delivery services.
Does Papa Murphy’s have a franchise fee?
Yes, like most restaurant chains, Papa Murphy’s operates on a franchise model. The closures specifically target corporate-owned stores, not necessarily franchised units, which are independently operated.
Who owns Papa Murphy’s?
Papa Murphy’s is owned by the MTY Food Group, a Canadian franchisor that acquired the brand in 2019.
Is Papa Murphy’s halal?
Official menu information varies by location. As a North American chain, menu items are not universally certified halal; customers should consult local store ingredient lists for specific dietary information.
Is Papa Murphy’s expanding to the UK?
There are no current announcements or strategic plans regarding expansion into the UK. The brand is currently focused on consolidating its North American operations.
What happens to employees in closing stores?
While specifics vary by location, companies generally provide severance or relocation assistance for corporate staff when a location is shuttered as part of a restructuring program.