Declining consumer demand and margin pressures force another pizza chain to reduce its U.S. footprint by nearly 70 locations.
Papa Murphy’s will close 68 underperforming stores as the pizza industry faces broad challenges. Rising costs, reduced order frequency, and competition from third-party delivery services have squeezed margins across the sector.
Restaurant counts in the pizza category have fallen since 2019, with chains like Pizza Hut and Papa John’s also shuttering locations. Consumers are opting for smaller pizzas with fewer toppings, while inflation and structural shifts, such as GLP-1 medications, further dampen demand.
Papa Murphy’s unique take-and-bake model has not insulated it from industry headwinds. Franchise owners report compressed margins, reflecting broader struggles in the casual dining sector.