Papa Murphy's Struggles in a Volatile Environment
Papa Murphy's continues to close underperforming stores as its parent company, MTY Food Group, works to turn the struggling pizza chain around.
MTY Food Group, a Montreal-based restaurant chain collector, is taking steps to address the challenges faced by Papa Murphy's amidst a volatile U.S. restaurant environment and intense competition in the pizza market.
According to MTY, sales at its brands declined 2.5% in the third quarter. Although the company does not break out sales by brand, executives indicated that all MTY chains, except Papa Murphy's, showed improvement.
As part of its turnaround efforts, Papa Murphy's has been working with franchisees to close underperforming locations over the past year.
Papa Murphy's is the largest brand owned by MTY Food Group, which also includes Cold Stone Creamery, Wetzel's Pretzels, and Famous Dave's.
The bulk of MTY's sales come from its U.S. operations.
Author's summary: Papa Murphy's struggles in a competitive market.