AI Generated Image
Pizza chain to close up to 50 locations as sales slump
Fox Business • • business
Key Points:
- MTY Food Group plans to close between 45 and 50 Papa Murphy's stores due to tough competition and underperformance in certain markets, despite previous efforts to turn around these locations.
- The closures are part of a broader strategy involving shutting down 68 underperforming corporate-owned stores across MTY's portfolio, which collectively lost over $10 million in the past year.
- CEO Eric Lefebvre emphasized that the closures are a necessary long-term action to stabilize the business and will be carried out gradually over six to nine months to protect staff and manage landlord negotiations.
- While Papa Murphy's stores represent a significant portion of the closures, other locations with higher losses and costs are also being closed to improve overall profitability.
- Lefebvre suggested that additional store closures or sales could occur if they align with the company's strategy, though the process will be measured rather than a rapid divestment.
