Papa Murphy's Restaurant Closures Begin July 13 As Up To 50 Locations Are Being Shut Down

Papa Murphy's is closing up to 50 locations beginning this week, the first shutdowns start July 13, as parent company MTY Group trims underperforming corporate-owned restaurants after what CEO Eric Lefebvre described as a difficult stretch for the business.

The closures are part of a larger decision to shut 68 corporate locations across MTY's portfolio, which also includes Cold Stone Creamery and Wetzel's Pretzels, over the next six to nine months.

The Papa Murphy's closures are the culmination of a failed turnaround attempt.

About two years ago, MTY Group repossessed three groups of Papa Murphy's restaurants it believed could be improved.

It invested in them. The markets did not recover. The 45 to 50 locations being closed collectively lost more than $10 million over the past 12 months.

Papa Murphy's ended 2025 with just 49 company-owned restaurants, meaning this wave of closures will eliminate most or all of its corporate-operated stores.

The take-and-bake pizza chain's total footprint has already been shrinking for years, down from 1,168 locations in 2023 to 1,014 in 2025. It is not alone. Pizza Hut closed approximately 250 restaurants in the first half of 2026.

Papa Johns plans to close up to 300 locations through 2027. Rising operating costs, shifting consumer habits and intense competition are reshaping the pizza industry across the board.

MTY is taking a gradual approach to the closures to limit disruption to employees, landlords and suppliers rather than shutting everything at once.

Closure and lease termination costs are estimated at $10 to $12 million Canadian.