MTY Group to Shut Down 68 Corporate Restaurants

MTY Group, a major Canadian restaurant franchisor, is preparing to close 68 of its corporate-owned locations. This significant reduction in its store count is slated to occur over the next six to nine months. The decision follows a comprehensive review of underperforming sites. Up to 50 Papa Murphy's restaurants, a take-and-bake pizza chain, are included in these closures. Other brands under the MTY umbrella also face potential closures or sales.

These restaurants have collectively lost over $10 million in the last year, largely attributed to a fiercely competitive pizza market. MTY's CEO and President, Eric Lefebvre, stated that the closures are a necessary step to reduce ongoing losses and enhance the overall quality of the corporate store portfolio. The company intends to reallocate resources towards brands and locations exhibiting stronger potential for returns. Papa Murphy's, in particular, has experienced a notable decline in its total number of stores, decreasing to approximately 1,000 locations from a high of 1,437 in 2018.