MTY Group, the parent company of Papa Murphy’s, recently announced the closure of up to 50 of its stores across the United States. The decision comes as a result of underperformance, which has led to significant financial losses. This move is a part of a wider restructuring initiative affecting multiple restaurant brands, including Wetzel’s Pretzels and Cold Stone Creamery, with Papa Murphy’s enduring the majority of closures.
According to Restaurant Dive, a total of 68 locations will be shut down, which constitutes around 1 percent of MTY’s overall store base. Other restaurant chains, such as Wendy’s, Papa Johns, and Pizza Hut, have similarly been struggling this year and have announced significant closures as part of their profitability strategies. The rise in food prices and a shift in consumer preferences toward takeout and delivery options have contributed to these challenges.
Impact Across States
MTY Group has yet to release a detailed list of the Papa Murphy’s locations set to close. As of July 14, they hadn’t disclosed this information publicly. The closures mainly involve company-owned stores rather than franchise locations. According to MTY’s 2026 franchise disclosure document, the company owned 49 stores across 10 states by the end of 2025. These states include Alabama with 3 stores, Arkansas with 2, Georgia with 3, Indiana with 8, Michigan with 6, Minnesota with 1, Missouri with 3, North Carolina with 7, Tennessee with 15, and Washington with 1.
Papa Murphy’s stores acquired by MTY Group were part of a previous turnaround effort. The company had only 8 stores at the end of 2023, but this grew to 44 in 2024 and 49 by the end of 2025.
Reasons for Store Closures
In a July earnings call, MTY Group’s CEO and President Eric Lefebvre explained the rationale behind the closures. He noted that the 68 locations selected had collectively incurred losses exceeding $10 million over the previous year, with their performance continuously declining.
The decision will reduce our store count in the near term, but we believe it is the right long-term action for the business, Lefebvre stated.
He added that closing these locations would enable MTY to reduce losses and focus resources on locations with higher return potential. Lefebvre also disclosed that Papa Murphy’s faced greater struggles compared to other brands.
At the end of 2025, Papa Murphy’s operated 1,014 locations, featuring 965 franchised stores and 49 company-owned units, which was a decline from 1,168 in 2023.
Timeline for Closures
MTY Group plans to implement the store closures over the next six to nine months. Lefebvre indicated that the initial wave of closures would commence during the week of July 13. The company aims to manage this process gradually, considering staffing, lease negotiations, and supply-chain logistics. MTY also mentioned the possibility of further sales or closures if required.