Papa Murphy's plans to close dozens more locations as the take-and-bake pizza chain struggles with industry headwinds that show no signs of slowing. MTY Food Group CEO Eric Lefebvre attributed the closures to a brutal promotional landscape and eroding customer loyalty in the pizza category.
The chain operates within a saturated market where competitors like Domino's, Pizza Hut, and regional players discount aggressively to drive sales. Papa Murphy's take-and-bake model, which asks customers to finish baking pizzas at home, never achieved the convenience factor of delivery-first competitors. That positioning gap widens when major chains run two-for-one deals and delivery specials.
Lefebvre's diagnosis points to a structural problem. Pizza chains survive on volume and frequency, but heavy promotions train customers to wait for deals rather than visit at full price. When everyone discounts, margins compress. For Papa Murphy's, which relies on franchise fees and product sales from roughly 1,200 U.S. locations, margin pressure translates directly to franchisee profitability. Struggling franchisees close units or fail to renew leases.
The chain faced prior closures during the pandemic, and this new round signals ongoing struggles to compete. Papa Murphy's distinguishes itself through customization and fresh dough, but those benefits fail to overcome the convenience gap against delivery and carryout options from larger chains. Consumer habit favors speed over baking time.
MTY Food Group, which acquired Papa Murphy's in 2020, also operates Extreme Pita, Mucho Burrito, and other concepts. The company's decision to shutter locations reflects a portfolio-wide strategy of cutting underperformers. For Papa Murphy's specifically, the message is clear. Without a fundamental shift in how Americans order pizza, the chain will continue shedding locations to