Papa Murphy’s is preparing to close dozens of restaurants, adding another major name to the growing list of U.S. food chains rethinking where and how they operate.
The take-and-bake pizza company could close between 45 and 50 Papa Murphy’s locations over the next six to nine months as parent company MTY Food Group moves aggressively against underperforming corporate restaurants.
The Papa Murphy’s closures are part of a wider plan involving 68 company-owned restaurants across MTY’s portfolio. The targeted stores collectively lost more than C$10 million during the past 12 months on a four-wall EBITDA basis, according to management.
For customers, the announcement raises an immediate question: Is Papa Murphy’s going out of business?
Is Papa Murphy’s Closing Restaurants in 2026?
Yes. Papa Murphy’s is expected to account for the majority of a major restaurant closure program announced by its parent company.
MTY Food Group President and CEO Eric Lefebvre said the company identified 68 underperforming corporate-owned restaurants following a detailed review of its store portfolio.
Between 45 and 50 of those locations are expected to be Papa Murphy’s restaurants.
The wider MTY portfolio includes numerous restaurant brands, meaning not all 68 closures involve Papa Murphy’s. However, the pizza chain represents a significant share of the planned shutdowns.
How Many Papa Murphy’s Locations Are Closing?
The current plan calls for approximately 45 to 50 Papa Murphy’s restaurants to close.
That number is important because some headlines have stated that Papa Murphy’s is closing 68 restaurants.
The situation is slightly different.
MTY Food Group plans to close 68 corporate-owned restaurants across multiple brands. Papa Murphy’s is expected to represent as many as 50 of those closures.
Therefore:
Up to 50 Papa Murphy’s locations could close.
68 MTY-owned restaurants are targeted in total.
The closures are expected to occur over approximately six to nine months.
MTY has also indicated that additional locations could eventually be closed or sold as the company continues reviewing its corporate restaurant portfolio.
That means the final number could change.
When Will Papa Murphy’s Restaurants Start Closing?
The first restaurant closures are expected to begin during the week of July 13, 2026.
However, customers should not expect all affected restaurants to shut down simultaneously.
MTY plans to handle the process systematically.
Management needs to consider employees, lease agreements, landlords and distribution arrangements.
Some restaurant closures may be relatively straightforward. Others could take longer because of contractual or operational complications.
The bulk of the closures is expected to move through the process during the coming months, with the overall restructuring potentially taking six to nine months.
At the time of writing, a complete public list of every Papa Murphy’s location scheduled to close has not been announced.
Customers concerned about a specific restaurant should verify current information directly with their local store or through Papa Murphy’s official location information.
Why Is Papa Murphy’s Closing So Many Restaurants?
The simplest answer is financial performance.
The restaurants identified by MTY are losing money.
But the story behind the Papa Murphy’s closures is more complicated than one bad quarter.
The chain has faced years of store-count decline, difficult U.S. market conditions and pressure on its take-and-bake model.
Several factors appear to be shaping the latest decision.
1. Underperforming Restaurants Lost More Than C$10 Million
The most immediate reason for the closures is the performance of MTY’s corporate-owned restaurant portfolio.
The 68 restaurants selected for closure collectively lost more than C$10 million during the previous 12 months on a four-wall EBITDA basis.
Keeping chronically unprofitable restaurants open can create a long-term drain on a restaurant company.
There are labour costs.
Rent and lease obligations continue.
Food and distribution expenses remain.
Management teams also spend time trying to improve locations that may have limited turnaround potential.
MTY has decided that closing the weakest stores is a better use of resources than continuing to absorb losses.
The company expects closure and lease termination costs of roughly C$10 million to C$12 million. That will create a short-term financial impact.
The longer-term objective is to remove loss-making stores from the portfolio.
2. Papa Murphy’s Has Been Shrinking for Years
The 2026 closures are not an isolated event.
Papa Murphy’s restaurant footprint has already contracted significantly.
The chain’s store count declined from 1,168 restaurants in 2023 to 1,014 in 2025, according to figures cited from franchise disclosure documents in recent industry reporting.
Go further back and the contraction becomes even clearer.
Papa Murphy’s had approximately 1,437 locations in 2018. Its network has since fallen to roughly 1,000 restaurants.
That represents the disappearance of more than 400 locations from the chain’s footprint over several years.
Many earlier reductions involved franchised restaurants.
The latest restructuring is particularly notable because it focuses heavily on company-operated locations connected to MTY’s turnaround efforts.
The parent company had taken control of groups of Papa Murphy’s stores with the hope that performance could be improved.
After investing in those restaurants, management concluded that some markets were no longer viable for the brand.
That is a serious signal.
The decision is not simply about temporarily weak sales. In certain markets, MTY appears to have questioned whether the existing Papa Murphy’s model can generate an acceptable return.
3. The U.S. Pizza Market Has Become Brutally Competitive
Americans have no shortage of pizza choices.
Major national brands compete heavily on price, digital ordering, loyalty programs and convenience.
Local pizza restaurants offer another alternative.
Consumers can also buy premium frozen pizza or prepared food from supermarkets.
Papa Murphy’s occupies an unusual position.
Its pizzas are prepared in stores but customers take them home and bake them.
The take-and-bake model has clear advantages.
Stores do not need the same kitchen equipment as traditional pizza restaurants. Customers receive a freshly baked pizza directly from their own oven.
But the model also asks the customer to complete an extra step.
When a consumer can order a hot pizza for delivery or pickup, the convenience argument becomes more difficult.
That does not mean take-and-bake pizza has no audience.
Papa Murphy’s still operates a substantial restaurant network.
The challenge is whether enough consumers in each individual market prefer the concept to support a profitable location.
MTY’s latest review suggests the answer was no for dozens of corporate-operated stores.
4. Consumers Are Watching Restaurant Spending
Restaurant companies have faced uneven consumer traffic as households become more selective about discretionary spending.
MTY’s fiscal second-quarter results reflected broader operating pressure.
The company reported weaker profitability and negative same-store sales in key markets. Management also pointed to softer consumer demand and pressure within the U.S. pizza category.
For pizza chains, value has become a major battleground.
Customers compare restaurant prices not only with rival pizza companies but also with grocery costs and other quick-service options.
Papa Murphy’s needs to convince consumers that a pizza they still have to bake at home delivers enough quality and value to justify the purchase.
In markets where that proposition is not resonating strongly enough, individual stores can struggle.
Is Papa Murphy’s Going Out of Business?
No. The announced store closures do not mean Papa Murphy’s is going out of business.
The company will continue operating through a large network of restaurants.
MTY’s wider restaurant system also remains heavily franchised. Approximately 97% of the parent company’s locations are franchised or managed through operator agreements, according to recent financial reporting.
The current closure plan focuses on underperforming corporate-owned restaurants.
This distinction matters.
Papa Murphy’s is shrinking, but the brand is not announcing a complete shutdown.
The more accurate description is portfolio restructuring.
MTY is removing restaurants that management believes have poor financial prospects and concentrating resources on stronger stores.
Still, the long-term decline in Papa Murphy’s total location count deserves attention.
A chain can remain in business while steadily losing restaurants.
The bigger question is whether MTY can stabilize the remaining Papa Murphy’s network and find a stronger path to growth.
Which Papa Murphy’s Locations Are Closing?
A complete nationwide list of affected Papa Murphy’s restaurants has not yet been publicly detailed.
This is likely to become one of the biggest search questions as the closure process continues.
The first shutdowns are expected to begin in mid-July, with additional closures taking place during the following six to nine months.
Customers should avoid assuming their nearest Papa Murphy’s is closing based only on the national announcement.
The plan specifically targets underperforming corporate-owned restaurants.
Because the Papa Murphy’s system also includes franchised locations, the status of one store does not necessarily indicate what will happen to another restaurant in the same state.
Check official store information and local announcements for confirmation.
We will update this story if a verified Papa Murphy’s closing locations list becomes publicly available.
Papa Murphy’s Is Not the Only Pizza Chain Cutting Locations
The wider pizza industry is also changing.
Several established chains have reviewed restaurant footprints as companies respond to costs, franchisee economics and changing consumer behaviour.
This matters because Papa Murphy’s problems do not exist in isolation.
The pizza category is mature.
Consumers know the major brands.
Competition for each order is intense.
Digital ordering has also made it easier to compare promotions and switch between restaurants.
A customer who once repeatedly ordered from the nearest pizza chain can now open an app and compare multiple offers within seconds.
That environment rewards strong value, convenient ordering and reliable customer experiences.
Underperforming restaurants become increasingly difficult to justify.
Final Thoughts
The news that Papa Murphy’s is closing up to 50 restaurants in 2026 is the latest chapter in a years-long contraction for the take-and-bake pizza chain.
Parent company MTY Food Group plans to close 68 underperforming corporate restaurants across its portfolio, with approximately 45 to 50 Papa Murphy’s locations expected to be affected.
The targeted restaurants collectively lost more than C$10 million during the previous 12 months.
Closures are expected to begin during the week of July 13 and continue over the next six to nine months.
Papa Murphy’s is not going out of business.
But its shrinking restaurant count, difficult U.S. performance and failed turnaround efforts in some markets show that the brand faces real challenges.
For now, MTY is betting that fewer loss-making restaurants will create a stronger corporate portfolio.
The next question is whether Papa Murphy’s can turn that smaller footprint into a more stable future.
Frequently Asked Questions
Is Papa Murphy’s closing restaurants in 2026?
Yes. Approximately 45 to 50 Papa Murphy’s locations are expected to close as part of MTY Food Group’s wider plan to shut 68 underperforming corporate-owned restaurants.
Why is Papa Murphy’s closing locations?
The affected restaurants are underperforming. The 68 stores targeted across MTY’s portfolio collectively lost more than C$10 million over the previous 12 months on a four-wall EBITDA basis.
How many Papa Murphy’s stores are closing?
MTY management has indicated that between 45 and 50 Papa Murphy’s restaurants are expected to be included in the current closure plan.
When will Papa Murphy’s locations close?
The first closures are expected to begin during the week of July 13, 2026. The full process could take six to nine months.
Is Papa Murphy’s going out of business?
No. Papa Murphy’s is not shutting down completely. The closures target underperforming locations as MTY restructures its corporate restaurant portfolio.
Which Papa Murphy’s locations are closing?
A complete public list of all affected locations has not yet been released. Customers should verify the status of individual restaurants through official local store information.
Could more Papa Murphy’s stores close?
Yes. MTY management has indicated that additional restaurants could potentially be closed or sold as it continues reviewing store performance.