Papa Murphy’s parent company, MTY Food Group, will close between 45 and 50 underperforming restaurants after the targeted locations generated more than $10 million in combined losses over the past year.
The closures are part of a wider restructuring that will see MTY shut 68 corporate-owned restaurants over the next nine months. While the move affects only a small portion of the company’s global network, it will remove nearly all of Papa Murphy’s remaining company-operated stores.
For customers, the announcement does not mean the pizza chain is disappearing. Most Papa Murphy’s restaurants are independently owned franchises and are expected to remain open.
Why is Papa Murphy’s closing nearly 50 stores?
MTY said an internal review found 68 corporate-owned restaurants that were consistently losing money. Together, those locations recorded more than $10 million in losses over the last year despite turnaround efforts.
President and CEO Eric Lefebvre said closing the weakest restaurants will reduce losses, improve the quality of the company’s corporate portfolio and allow more investment in stronger-performing brands and locations.
The affected Papa Murphy’s restaurants were acquired about two years ago as part of a turnaround strategy. MTY introduced menu changes, updated the loyalty program and worked with franchisees to improve marketing, but many company-operated stores continued to struggle.
According to MTY’s official investor information, Papa Murphy’s has faced greater challenges in the U.S. than many of the company’s other restaurant brands.
How many restaurants are affected?
MTY plans to close 68 corporate-owned restaurants, with 45 to 50 of them being Papa Murphy’s locations. The remaining closures involve other brands in MTY’s portfolio.
The company operated 7,040 restaurants globally at the end of the second quarter, with approximately 97% owned by franchisees or independent operators. As a result, the announced closures represent only about 1% of MTY’s worldwide restaurant network.
MTY also reported that network-wide same-store sales declined 2.1% during the quarter, although it still opened six net new restaurants.
Which Papa Murphy’s stores are closing?
MTY has not released a list of the affected restaurants. The first closures were scheduled to begin during the week of July 13, with additional locations closing gradually over the following months.
Customers concerned about their local restaurant should check directly with the store or use the official Papa Murphy’s location finder until individual closure announcements are made.
Papa Murphy’s had only 49 company-owned restaurants at the end of 2025. Closing 45 to 50 locations would therefore eliminate nearly all of its remaining corporate-operated stores.
Is Papa Murphy’s going out of business?
No. The company has announced closures of underperforming corporate-owned restaurants, not the end of the Papa Murphy’s brand.
Most Papa Murphy’s locations are franchised, meaning they are independently owned and are not included in this restructuring. The chain’s overall footprint has declined from 1,168 stores in 2023 to 1,014 in 2025, but many of those earlier closures involved franchise locations.
Restaurant companies across the industry have been reviewing weaker-performing locations. Earlier this year, Long John Silver’s continued reducing its restaurant footprint, highlighting the financial pressure facing many quick-service brands.
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What does this mean for customers?
Customers should not assume their nearest Papa Murphy’s is closing. Since MTY has not identified specific restaurants, many locations are expected to continue operating normally.
The company has not announced any changes to gift cards or loyalty rewards. Customers should still be able to use them at participating restaurants unless an individual location communicates otherwise.
The pizza industry continues to adapt to rising operating costs and changing customer habits. Similar restructuring has been seen elsewhere, including Pizza Hut’s recent ownership transition, as major restaurant brands focus on profitability and long-term growth.
MTY says it will continue investing in Papa Murphy’s through menu innovation, loyalty program improvements and stronger franchise marketing. The company has also indicated it will continue reviewing its corporate-owned restaurant portfolio and could sell or close additional underperforming locations if necessary.
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