Papa Murphy's Franchisees Not the Main Problem
The CEO of MTY Food Group, Eric Lefebvre, discussed Papa Murphy's problems on an earnings call, citing competitors' overinvestment in marketing.
"You look at our competitors, and they all admitted to overinvesting in marketing in the last few quarters ... not something we can afford to do,"
He noted competitors spent $20-30 million extra on marketing, and Papa Murphy's needs to compete differently.
Lefebvre also mentioned some franchisees reducing local marketing efforts, affecting sales.
Author's summary: Papa Murphy's faces marketing challenges.