MTY Group announced plans to shut down up to 50 corporate‑owned Papa Murphy’s locations as part of an effort to trim its underperforming portfolio.
These closures affect the brand most heavily.
Corporate closures span multiple brands
CEO and President Eric Lefebvre said the firm will close a total of 68 corporate stores across its lineup, which includes Wetzel’s Pretzels and Cold Stone Creamery. The first wave begins the week of July 13 and will continue for six to nine months.
According to the filing, the restaurants selected for shutdown have collectively lost more than $10 million in the past year, and their performance “was for the most part deteriorating.” While the tally represents roughly 1 % of MTY’s total store base, the move is intended to free up resources for locations that generate stronger returns.
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Impact on Papa Murphy’s chain
MTY’s review singled out Papa Murphy’s as the brand with the most pronounced struggles in the United States. The firm will close between 45 and 50 of its own stores, which it acquired two years ago during a turnaround attempt. The chain’s franchise disclosure document shows corporate‑owned units fell to 49 at the end of 2025, down from a larger count earlier in the decade.
Franchised outlets have borne the brunt of previous closures, with the overall count dropping from 1,168 in 2023 to 1,014 in 2025. The upcoming shutdowns will therefore affect most—if not all—of the remaining corporate locations.
The decision is not expected to shift same‑store sales dramatically because the shuttered units were already performing well below average. “Papa Murphy’s, certainly in the U.S., has been struggling more than our other brands as of recent,” Lefebvre said, noting the brand’s outsized weight on the quick‑service restaurant (QSR) segment.
The company also indicated that additional stores could be closed or sold later, emphasizing a gradual approach rather than a “fire sale.” “We’ve been slowly but gradually disposing of some stores where it makes sense for us,” he added.
In the broader fast‑food sector, other chains are trimming their footprints as well. Wendy’s and Jack in the Box have announced plans to close mostly franchised outlets, while Pizza Hut and Papa John’s revealed sizable reductions amid growing competition from Domino’s.
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MTY’s overall same‑store sales fell 2.1 % in the second quarter, according to its earnings release. The firm reported six net openings during the same period, bringing its total locations to 7,040, with about 97 % operating under franchise or operator agreements.
Compared to past restructuring moves, the scale of the corporate closures is modest; earlier attempts to streamline operations often involved larger percentages of a brand’s footprint. Still, the focus on corporate‑owned stores mirrors a common industry tactic: pruning the less profitable core to stabilize the broader network.
The company has been working with franchisees to boost marketing contributions, improve digital sales via an updated rewards program, and refine its menu offerings, including a new pizza lineup aimed at attracting customers.
Employees at the affected sites will be given notice in a systematic fashion, allowing time for negotiations with landlords and handling of distribution matters. The firm hopes the phased approach will mitigate disruption for staff and supply chains.