A major pizza chain is preparing to close dozens of restaurants once again as its parent company works to eliminate underperforming locations following what executives describe as a “challenging period” for the business.
The restructuring is part of a broader effort to improve the performance of its corporate-owned restaurants, with the first shutdowns expected to begin during the week of July 13 and continue over the next several months.
The move comes as pizza chains across the industry grapple with higher operating costs, shifting consumer spending, and intense competition. In recent months, brands including Pizza Hut and Papa Johns have also announced significant store closures as they reshape their networks.
Now, another well-known pizza chain is joining a growing list of brands reducing their restaurant footprints.
Papa Murphy’s confirms restaurant closures
During MTY Group’s second-quarter fiscal 2026 earnings call, CEO Eric Lefebvre said the company plans to close 68 underperforming corporate-owned restaurants over the next six to nine months.
Up to 50 of those locations are expected to be Papa Murphy’s restaurants, while the remaining closures will affect other MTY Group brands.
Here’s some of my previous coverage of pizza chain closures:
Founded in 1979, MTY Group (MTY) is one of North America’s largest restaurant franchisors, operating more than 80 restaurant brands, including Papa Murphy’s, Wetzel’s Pretzels, Cold Stone Creamery, and others, across Canada, the U.S., and international markets.
Some restaurants are scheduled to close permanently during the week of July 13, though Lefebvre said the company is taking a measured approach to minimize disruption for employees, landlords, and suppliers.
“We’ve been slowly but gradually disposing of some stores where it makes sense for us,” said Lefebvre. “It’s not fire sale, but we’re also in the process where we can reduce the corporate store portfolio.”
He added that additional restaurant closures remain possible if other locations continue to underperform.
Why Papa Murphy’s is closing stores
According to Lefebvre, the company evaluated each restaurant individually based on its long-term financial outlook and local market conditions. The locations selected for closure collectively generated more than CAD 10 million in losses.
“Where we saw a path to improve, we chose to continue investing efforts into making our existing assets as productive as they can be,” said Lefebvre. “Where the fundamentals no longer support that path, we made the decision to close stores.”
