Papa Murphy's Closes 68 Locations Amid Pizza Industry Challenges
The pizza industry is facing significant challenges, with declining restaurant counts and shifting consumer behavior impacting major chains like Papa John’s, Pizza Hut, and now Papa Murphy’s. Inflation, reduced customer spending frequency, rising labor costs, ingredient price increases, and the impact of third-party delivery services have all contributed to a difficult operating environment for pizzerias. Papa Murphy's has announced plans to close 68 underperforming corporate-owned locations as part of an effort to improve profitability. The company operates on a take-and-bake model where customers prepare pizzas at home, and the closures are expected to be completed within six to nine months. These stores reportedly lost over $10 million in the past year. The broader pizza sector has seen declining popularity among consumers, with pizzerias now ranked sixth among restaurant preferences behind coffee shops and Mexican food chains.
Topics: franchise model pizza industry decline restaurant closures