The Gist

In early 2026, Papa Murphy’s, a popular take-and-bake pizza chain, announced the closure of 45 to 50 locations as part of a broader strategy by its parent company, MTY Food Group, to address underperforming stores amid a challenging pizza market.

How It Worked

MTY Food Group, which owns several restaurant brands, made the decision to close stores based on performance metrics and economic viability. The CEO, Eric Lefebvre, pointed out that selected locations were significantly underperforming compared to the average. The analysis considered factors such as revenue, customer loyalty, and market competition. To protect franchisee profit margins, the company is actively adjusting promotional strategies to enhance profitability.

Results

As of the latest earnings call, MTY reported a revenue decline of 8.2% year-over-year, totaling $279.9 million CAD. With the impending closures, the company aims to streamline operations and focus on more productive assets, although specifics about which stores will close have yet to be disclosed. The process of shutting down these locations is expected to span six to nine months.

Why It Matters for You

For business owners in competitive markets, this case illustrates the importance of regularly assessing store performance and market conditions. Identifying underperforming locations and making difficult decisions about closures can be crucial for overall profitability. Additionally, businesses should focus on optimizing promotions to maintain customer loyalty and protect profit margins, especially in saturated industries.