This beloved US pizza chain is shutting up to 50 restaurants after losing millions and more closures could follow

Papa Murphy’s restaurant closures are set to accelerate after the pizza chain’s parent company announced plans to shut as many as 50 underperforming locations over the next several months.

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The move comes after a review of the company's corporate store portfolio found that several locations were dragging down performance. While the closures will reduce the chain’s footprint in the short term, executives say the decision is aimed at strengthening the business for the future.


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Papa Murphy’s restaurant closures: Up to 50 stores to close

The latest round of Papa Murphy’s restaurant closures was announced by MTY Group, the Canadian franchisor and restaurant operator that acquired the take-and-bake pizza chain two years ago.

During the company's latest earnings call, MTY Group said 45 to 50 Papa Murphy’s locations will close over the next six to nine months as part of a broader strategy to eliminate underperforming stores.

Papa Murphy’s has built its reputation around its unique take-and-bake pizza model, where customers customize their pizzas in-store, take them home and bake them fresh in their own ovens.

Why are Papa Murphy’s restaurant closures happening?

According to MTY Group, the decision follows a performance review that identified stores generating significant losses.

CEO and President Eric Lefebvre said the affected locations, together with other struggling corporate brands, have lost more than $10 million over the past year.

"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 said.

"It will allow us to reduce losses, improve the quality of the corporate store portfolio, and focus our resources on locations and brands with stronger return potential."

The company said the closure process will begin immediately, allowing time to support employees, negotiate with landlords and manage operational and distribution changes.

More Papa Murphy’s restaurant closures could follow

The current shutdowns may not be the last.

During the earnings call, Lefebvre indicated that MTY Group will continue reviewing its corporate restaurant portfolio and may dispose of additional locations where it makes business sense.

"We’ve been slowly but gradually disposing of some stores where it makes sense for us," Lefebvre said.

"It’s not a fire sale, but we’re also in a process where we can reduce the corporate store portfolio."

While Papa Murphy’s restaurant closures represent the largest restructuring effort, the company said it continues to evaluate performance across its restaurant brands.

Papa Murphy’s has struggled more than other MTY brands

MTY Group owns a wide range of restaurant brands, including Wetzel’s Pretzels, Cold Stone Creamery, Pinkberry and Baja Fresh.

However, executives said Papa Murphy’s has been facing much bigger challenges than the rest of the portfolio.

"Papa Murphy’s, certainly in the US, has been struggling more than our other brands as of recent. So that’s a significant weight on QSR," Lefebvre said.

"We have some other brands also that have been exposed, where we have various initiatives that are coming, but nothing of the magnitude of the struggles we have with Papa Murphy’s."

Papa Murphy’s store count has been shrinking

The latest Papa Murphy’s restaurant closures continue a trend that has been unfolding over the past few years.

According to the company's franchise disclosure documents, the chain's total number of locations dropped from 1,168 restaurants in 2023 to approximately 1,014 locations in 2025.

Most of those closures involved franchised restaurants rather than corporate-owned stores.

Despite its shrinking footprint, Papa Murphy’s continues to offer its signature customizable take-and-bake pizzas, allowing customers to choose their preferred crusts, sauces and toppings before baking the pizza at home using cooking instructions provided by the company.

The pizza industry continues to face pressure

The wave of Papa Murphy’s restaurant closures comes as several well-known pizza chains are also dealing with financial and operational challenges.

Earlier this year, the operator of Mountain Mike’s Pizza filed for bankruptcy after reporting debts estimated between $1 million and $10 million.

Meanwhile, Papa John’s announced plans to close hundreds of older, underperforming franchise locations by the end of 2027. Many of those restaurants reportedly generate annual sales of $600,000 or less.

Pizza Hut has also announced plans to close 250 locations following an ongoing business review, while warning that additional restructuring options, including a possible sale of the business, remain under consideration.

What the Papa Murphy’s restaurant closures mean for customers

For now, Papa Murphy’s restaurant closures will affect only selected underperforming corporate-owned locations, with closures expected to take place gradually over the next six to nine months.

Customers at affected stores can expect operations to wind down in phases as MTY Group works through staffing, lease negotiations and supply chain adjustments.

The company says its goal is to strengthen the remaining restaurant network by focusing investment on locations with stronger long-term growth potential.