Papa Murphy’s shutters underperforming stores

Core Insights - The pizza segment is highly competitive, with rival brands investing $30 million to $40 million in marketing, which MTY Food Group cannot match [3] - Papa Murphy's is experiencing a decline in digital sales, which represent 40% of its transactions, prompting a revamp of its rewards program to attract new customers and increase loyalty [5] - The chain is also focusing on menu optimization and launching a new lineup of pizzas to enhance guest experience and operational efficiency [6] Marketing and Franchisee Support - MTY Food Group is collaborating with franchisees to enhance marketing efforts, as insufficient marketing investment by some franchisees has led to sales declines [3][4] - The company aims to provide franchisees with the right materials and campaigns to encourage them to invest in marketing [4] Store Closures and Performance - Papa Murphy's has closed underperforming locations, reducing its store count from 1,239 at the start of 2022 to 1,044 by the end of 2024, a loss of 195 units, with the most significant decline occurring in 2024 [7][8] - The closures are part of a strategy to focus on markets with stronger growth potential, as evidenced by a new location in Deer Park, Washington, which is generating double the average unit sales [8]