Papa Murphy’s is expected to close approximately 45 to 50 company-operated pizza stores in the United States as its parent company restructures a group of underperforming restaurants.
The Papa Murphy’s closures form the largest part of a wider programme covering 68 corporate-owned restaurants across several concepts.
Those 68 restaurants generated combined losses of more than $10 million during the previous 12 months.
The wider closure and lease-negotiation process is expected to take six to nine months, although the first exits were due to begin in July 2026. A complete, verified list of affected Papa Murphy’s addresses has not been published.
Key highlights:
- Around 45 to 50 Papa Murphy’s stores are expected to shut.
- The officially confirmed restructuring covers 68 corporate restaurants.
- The $10 million-plus loss applies to all 68 selected restaurants, not Papa Murphy’s alone.
- Closure and lease-exit costs are estimated at $10 million to $12 million.
- The programme could take six to nine months to complete.
- No complete official location list was available when this article was checked.
- The announcement is not a company-wide Papa Murphy’s shutdown.
Who Is Papa Murphy’s?
Papa Murphy’s is a US pizza chain known for its take-and-bake model: staff prepare fresh, uncooked pizzas for customers to bake at home.
Founded in 1981, the business became part of MTY Food Group in 2019 and now operates mainly through franchised locations. Its distinctive model separates it from conventional delivery-led pizza chains.
A Look at the Pizza Chain’s Business Model:
| Detail | Overview |
| Business model | Take-and-bake pizza |
| Parent company | MTY Food Group |
| Ownership structure | Mainly franchised |
| Core offer | Fresh pizzas prepared for home baking |
Although the current closures affect many company-operated stores, they do not represent the disappearance of the wider franchise network or the end of the Papa Murphy’s brand across the United States and other markets.
How Many Papa Murphy’s Pizza Stores Are Closing?
Between 45 and 50 Papa Murphy’s restaurants are expected to close. That figure was disclosed through management comments reported after the company’s second-quarter results.
The formally published announcement confirms that 68 underperforming corporate restaurants will be removed from the wider portfolio.
Papa Murphy’s is expected to account for most of those closures, but the company has presented the brand-specific figure as a range rather than a fixed total.
The number may change because individual sites can have different lease terms, closure costs and commercial prospects. A restaurant selected during an initial review might be sold, transferred to a franchise operator or retained if a workable solution is reached.
This means three facts should not be confused:
- 68 locations is the confirmed portfolio-wide total.
- 45 to 50 locations is the reported Papa Murphy’s estimate.
- Exactly which stores will close remains unconfirmed.
The wording “up to 50” is therefore more accurate than stating that precisely 50 Papa Murphy’s branches will definitely shut.
Why Is Papa Murphy’s Closing Stores After Heavy Losses?
The closures are intended to stop continuing losses at restaurants judged unlikely to deliver an acceptable return.
According to the MTY Food Group’s Management Discussion and Analysis report, the 68 selected corporate locations lost more than $10 million collectively over the preceding year, while estimated lease termination and closure costs could reach $10 million to $12 million.
The principal pressures include:
- weak performance at particular company-operated sites;
- rent and other long-term lease commitments;
- labour, commodity and operating-cost pressure;
- softer consumer spending in some markets;
- intense promotion across the US quick-service pizza sector; and
- the opportunity cost of supporting stores with limited recovery potential.
The wider group reported a 2.1% fall in same-store sales during its second quarter, including a 2.2% decline in the US. These are group and regional figures rather than Papa Murphy’s-only results, so they should not be presented as the brand’s exact sales decline.
The chief executive, Eric Lefebvre, said:
“While this action will reduce our store count in the near term, we believe it will strengthen the business over the long term.”
The strategy carries significant immediate costs, but management expects that removing recurring losses will improve the quality of the remaining corporate portfolio.
Which Papa Murphy’s Locations Are Closing, and When Will They Shut?
No complete official list of closing Papa Murphy’s restaurants had been released by 15 July 2026.
Reports naming possible states or branches should therefore be treated cautiously unless they are supported by a direct company announcement or a verified local closure notice.
No Complete Store Closure List Has Been Published
Some possible-location lists are based on existing corporate-store data, previous closures or the areas where Papa Murphy’s currently operates. That does not establish that every location mentioned has been selected.
Customers can use the official restaurant location directory to check whether a branch is still listed, but appearing in the directory is not necessarily proof that a restaurant will remain open throughout the restructuring.
Calling the store directly may provide the clearest local information.
Previously closed restaurants can also remain visible in search results, maps or old social posts. Publication dates and direct local confirmation should therefore be checked before sharing a closure claim.
When Will the Closures Take Place?
The first phase was reported to begin during the week of 13 July 2026. The complete programme, including landlord negotiations and lease buyouts, is expected to require six to nine months. Some closures could consequently continue into late 2026 or early 2027.
Stores will not necessarily shut simultaneously because staffing, stock, advance orders, supplier arrangements, leases and possible sales must be handled separately.
Is Papa Murphy’s Going Out of Business?
No, Papa Murphy’s is not going out of business, and the company has not announced a bankruptcy, liquidation or complete shutdown.
The restructuring only affects selected company-owned restaurants, not the entire Papa Murphy’s network. The brand is expected to continue operating through its remaining corporate locations and its large franchise network.
While the planned closure of 45 to 50 company-operated stores is significant and could leave very few corporate-owned restaurants, it does not mean all Papa Murphy’s outlets are closing.
Franchise-owned locations operate independently under separate agreements and are not automatically affected.
Therefore, claims that the entire chain is shutting down are not supported by the company’s announcement.
How Does the Difference Between Corporate and Franchise Stores Affect the Closures?
A corporate-owned restaurant is operated directly by the parent group or one of its subsidiaries. A franchised restaurant is operated by an independent business owner using the brand’s name, systems and products.
At the end of the second quarter, the wider restaurant network contained 7,040 locations. Of these, 6,808 were franchised or operated under agreements, while 232 were corporate-owned. These figures appear in the official second-quarter results release.
Corporate and franchise comparison:
| Feature | Corporate-owned restaurant | Franchised restaurant |
| Day-to-day operator | Parent group or subsidiary | Independent franchisee |
| Main operating costs | Carried directly by the company | Carried mainly by the franchisee |
| Closure decision | Controlled by the corporate owner | Usually involves the local operator |
| Automatically included here? | Potentially | No |
| Possible transfer | May be sold to a franchisee | Already independently operated |
This distinction explains why a substantial reduction in company-operated Papa Murphy’s restaurants does not automatically close the wider franchise network.
What Do the Closures Reveal About the Wider Restructuring Strategy?
The closures show a deliberate move away from weak company-operated restaurants and towards a more profitable, franchise-led portfolio. Management has said it wants to concentrate resources on locations and concepts with stronger return potential.
The Financial Impact of Underperforming Restaurants
The programme will create short-term charges before any longer-term saving becomes visible.
Confirmed financial and operating evidence”
| Measure | Reported position |
| Corporate restaurants selected | 68 |
| Combined losses over 12 months | More than $10 million |
| Estimated closure and lease costs | $10 million–$12 million |
| Right-of-use asset impairment | $7.5 million |
| Expected completion period | Six–nine months |
| Group same-store sales change | Down 2.1% |
The loss, estimated cost and impairment figures relate to the wider portfolio programme and should not all be attributed exclusively to Papa Murphy’s. Company financial reporting is presented in Canadian-dollar terms unless a document or report specifies otherwise.
Why Corporate-Store Exposure Is Being Reduced?
A franchise-led model limits the parent company’s direct exposure to local wages, property costs and restaurant-level operating losses. The company instead receives revenue from royalties, fees and related services.
Corporate restaurants can still be valuable for testing products or operating strategically important markets, but persistently weak sites can reduce margins and absorb management attention.
Could Some Stores Be Sold Instead?
Management has indicated that stores may be disposed of where that makes commercial sense and has described the process as measured rather than a “fire sale”.
A suitable franchise operator could potentially acquire a viable location instead of allowing it to close permanently.
Any sale, transfer or conversion should remain classified as a possibility until the company confirms the outcome for a specific restaurant.
What Could the Store Closures Mean for Employees, Customers and Local Markets?
The planned store closures could affect employees, customers and local communities differently depending on which locations close and whether any restaurants are sold or transferred to franchisees. The overall impact will vary by market.
Potential Impacts:
- Employees: Possible redundancies, reduced working hours or transfers to nearby locations.
- Customers: Longer travel to another Papa Murphy’s restaurant and changes to local promotions or advance orders.
- Suppliers and landlords: Lower order volumes, lease negotiations and the search for new tenants.
- Franchisees: Opportunities to acquire selected corporate-owned stores.
No official nationwide job-loss figure has been confirmed. As the programme continues, the long-term impact will depend on how effectively the remaining restaurant network adapts to the restructuring.
What Should UK Businesses and Entrepreneurs Watch?
The Papa Murphy’s closure programme offers useful lessons for UK business owners, franchise operators and entrepreneurs. The long-term impact will depend on whether the restructuring improves profitability while protecting the brand’s stronger locations.
For Business Owners
Business owners should closely monitor:
- Whether the planned closures reduce recurring operating losses.
- If underperforming stores are sold or transferred to franchisees.
- Future same-store sales and overall financial performance.
- Whether the company announces further restructuring or store reviews.
For Franchise Operators and Investors
Franchise operators and investors should watch:
- The performance of the remaining restaurant network.
- Changes to franchise growth, support and expansion plans.
- The long-term sustainability of the franchise-led business model.
Papa Murphy’s ended the quarter with 7,040 restaurants, with around 97% operating under franchise or similar agreements, highlighting the continued importance of its franchise network.
The success of the restructuring will ultimately depend on whether it reduces costs while supporting sustainable growth across the wider business.
Conclusion
The Papa Murphy’s pizza store closures represent a major reduction in the chain’s company-operated footprint, driven by continuing losses at underperforming restaurants.
The wider programme is designed to remove 68 weak corporate locations, with around 45 to 50 expected to carry the Papa Murphy’s name. Although that could eliminate most of the brand’s remaining corporate restaurants, it does not mean every franchised branch is closing.
The final count, affected addresses and number of permanent closures could change during lease negotiations and possible store sales. Customers and employees should rely on direct company communications and verified local notices rather than speculative national lists.
Frequently Asked Questions
Why do reports say “up to 50” stores?
The number remains a range because individual leases, possible sales and final store decisions are still being resolved. Some selected restaurants could be transferred rather than permanently closed.
Who owns Papa Murphy’s?
Papa Murphy’s is owned by a Canadian restaurant franchisor and operator that manages more than 80 food-service concepts across Canada, the United States and international markets.
What is a take-and-bake pizza restaurant?
A take-and-bake restaurant prepares an uncooked pizza for the customer to take home and bake. The model differs from conventional pizza delivery businesses that sell fully cooked food.
Could a closing restaurant be sold to a franchisee?
Yes, a sale or franchise conversion may be possible where a restaurant, lease and local market remain commercially viable. No individual transfer should be treated as confirmed without an announcement.
Will gift cards remain valid after a local closure?
Validity can depend on the card’s terms and whether other participating branches accept it. Customers should check the applicable conditions or contact official customer support.
Are employees guaranteed transfers to other branches?
No universal transfer guarantee has been announced. Opportunities are likely to depend on vacancies, ownership arrangements and the distance to other operating restaurants.
Could the restructuring affect short-term profits?
Yes. Impairments, lease settlements and closure expenses can reduce short-term earnings and cash flow. The longer-term aim is to eliminate recurring losses from weaker locations.
Editorial Note:
The officially confirmed figure is 68 corporate restaurant closures across the wider portfolio. The estimate of 45 to 50 Papa Murphy’s closures comes from reported management comments.
The more than $10 million combined loss applies to all 68 selected restaurants. It should not be described as a loss generated solely by Papa Murphy’s. No city, state or individual restaurant has been classified as closing in this article without direct confirmation.
How We Checked?
The article was checked by comparing the official quarterly results, management discussion and network figures with multiple reports covering the earnings call.
Claims were separated into confirmed figures, reported management guidance and information that remains unavailable.
The closure timetable, impairment charge, estimated exit costs, network ownership structure and local-store directory were reviewed. Speculative social-media lists were not used as evidence.
