What happened to Papa Murphy’s franchisees?
In 2017, the company gave new operators three years of royalty breaks if they opened restaurants in new markets. Growth concepts typically don’t need to do that. And Papa Murphy’s had a lot of small franchisees and low unit volumes of around $500,000.
What does Papa Murphy’s interim CEO want new owners to do?
“We have a clear opportunity to reduce short-term losses while giving new owners a more profitable portfolio of stores from the start,” Papa Murphy’s interim CEO Jean Birch said in a statement.
Is Papa Murphy’s a good investment?
Private-equity firm Lee Equity bought the chain, reportedly for about $180 million, in 2010. At the time, it was considered a growth concept with well-loved pizza. Papa Murphy’s traditionally gets high marks on consumer ratings. Four years later, Lee took Papa Murphy’s public, hoping to ride growing investor desire for restaurant companies.
How many Papa Murphy’s stores are in the US?
The company operated 168 of its 1,566 units, as of April 3. The closures represent nearly 10 percent of company operations. “We have a clear opportunity to reduce short-term losses while giving new owners a more profitable portfolio of stores from the start,” Papa Murphy’s interim CEO Jean Birch said in a statement.
Why did Papa Murphy's pizza close?
The owner of Papa Murphy's, Cold Stone Creamery, Pinkberry and dozens of other chains has temporarily closed 2,100 of its locations due to the coronavirus and on Monday said it had temporarily laid off more than half of its global workforce.
Is Papa Murphy's owned by Papa John's?
Papa Murphy's is a take-and-bake pizza company based in Vancouver, Washington. It began in 1995 as the merger of two local take-and-bake pizza companies: Papa Aldo's Pizza (founded in 1981) and Murphy's Pizza (founded in 1984)....Papa Murphy's.A Papa Murphy's in Gillette, WyomingParentMTY Food GroupWebsitepapamurphys.com9 more rows
Who owns Papa Murphy's?
MTY Food GroupLee Equity PartnersPapa Murphy's Holdings, I...Papa Murphy's/Parent organizations
Is Papa Murphy's growing?
Papa Murphy's Pizza, the rapidly expanding pizza franchise, is ramping up for smart growth expansion. After nearly 40 years since its inception, Papa Murphy's has grown to more than 1,300 locations.
What is Papa Murphy's most popular pizza?
Most Popular Items at Papa Murphy'sPepperoni Pizza. #1.Cowboy Pizza. #2.All Meat Crustless Keto Pizza. #3.Chicken Bacon Artichoke Thin Crust Pizza. #4.Hawaiian Pizza. #5.Garden Veggie Pizza. #6.Herb Chicken Mediterranean Thin Crust Pizza. #7.Papa's Favorite Pizza. #8.More items...•
How many Papa Murphy's are there in the US?
Papa Murphy's has more than 1,500 locations in 38 states, as well as restaurants in Canada and the United Arab Emirates, making it the fifth-largest pizza chain in the US.
How many Papa Murphy's are there in the world?
Although we have more than 1,200 locations, we have room to expand our footprint even further.
How much did Papa Murphy's sell for?
$190MWith the deal, MTY's combined network will represent roughly 7,378 stores globally. Papa Murphy's is the fifth largest pizza chain in the U.S.
Who is the CEO of Papa Murphy's?
Eric Lefebvre In October 2019, Mr. Lefebvre was appointed Chief Executive Officer of Papa Murphy's. Mr. Lefebvre became Chief Executive Officer of MTY Food Group in November 2018.
Why did Papa Murphy's change their logo?
The brand is evolving its positioning to match the family mindset of today, and this new logo complements this evolution, rooting our identity in unconventional approach to meals,” said Kim McBee, senior vice president of guest experience and brand marketing for Papa Murphy's, in a statement.
Did Papa Murphy's change their logo?
The company introduced a “Kitchen Delite” store design with an open kitchen that “enhances the in-store experience for consumers and employees alike.” It is the first new redesign for the company since 2014. Papa Murphy's also revealed its first new logo in more than a decade.
Is Papa Murphy's publicly traded?
Papa Murphy's history The company went public in 2014, trading on Nasdaq as FRSH, but has been struggling to keep up in an increasingly competitive casual food industry. Its stock price has hovered around $5 per share for the past two years.
When did Papa Murphy's sell out?
In 2010, the chain sold out to Lee Equity Partners of New York City. Sales for the chain totaled $702 million in 2011, which grew to $800 million in 2012 from 1,350 outlets. Reuters reported in 2013 that Papa Murphy's New York parent, Lee Equity Partners, was preparing a public offering for the take-and-bake pizza chain. Official plans for the IPO were announced in March 2014.
Who bought Papa Murphy's Pizza?
Papa Murphy's is the fifth-largest pizza chain in the United States. In April 2019, it was announced that the company would be acquired by MTY Food Group for $190 million.
Where is Papa Murphy's Pizza located?
Papa Murphy's is a take-and-bake pizza company based in Vancouver, Washington. It began in 1995 as the merger of two local take-and-bake pizza companies: Papa Aldo's Pizza (founded in 1981) and Murphy's Pizza (founded in 1984).
When did Papa Murphy's start advertising?
Papa Murphy's (FRSH) was added to the Nasdaq May 2, 2014, raising $64.1 million in shares. Following a loss in the third quarter of 2016, the company announced that it would launch its first national advertising campaign in 2017. By 2017–2018, the franchisor was struggling, dipping in and out of losses and profitability.
Is Papa Murphy's a good pizza chain?
1 Rated Pizza Chain for the third consecutive year, according to more than 10,500 respondents, in Zagat's 2012 Fast-Food Survey. In 2013 QSR (Quick Service Restaurant) Magazine, recognized Papa Murphy's with a 2013 Franchisee Satisfaction Award and in 2014 as top Top Pizza Chain and was rated first for both quality and healthy food.
Who bought Papa Murphy's Pizza?
By Jonathan Maze on Apr. 16, 2019. Last week, Canadian-based brand collector MTY Group agreed to acquire take-and-bake pizza chain Papa Murphy’s in a $190 million deal.
Why did Lee take Papa Murphy's public?
Four years later, Lee took Papa Murphy’s public, hoping to ride growing investor desire for restaurant companies. But that offering looked a lot less desirable than perhaps the company thought it would be.
How much debt did Papa Murphy have?
But Papa Murphy’s also had a lot of debt, considering the size of its all-franchised system. It had $170 million in debt at the time of the IPO. Debt isn’t necessarily bad, but too much debt definitely is, and Papa Murphy’s had to grow aggressively for it to justify its newly public position and to pay off that debt.
Why did franchisees sue the IPO?
Shortly before the IPO, franchisees sued the chain, claiming the company’s financial projections weren’t relevant in the Southern states where the company was expanding. Yet it soured investors on the concept, and the stock price barely rose on its first day of trading—unbelievably weak performance in an era in which IPOs are set up to ensure the stock “pops” on the first day of trading.
Is Papa Murphy a victim of consumer shift?
Like many chains, Papa Murphy’s troubles were both environmental and self-inflicted. It is a victim of consumers’ shift toward convenience, and the company’s own heavily indebted structure and a franchisee base loaded with small-scale operators.
Is Papa Murphy's inconvenient?
Many of its rivals have worked hard to keep pace. Papa Murphy’s is fundamentally inconvenient. Consumers have to make the food themselves. And while consumers eat the product at its freshest, they still have to take the time to make it.
Is Papa Murphy's debt bad?
Debt isn’t necessarily bad, but too much debt definitely is, and Papa Murphy’s had to grow aggressively for it to justify its newly public position and to pay off that debt. In 2017, the company gave new operators three years of royalty breaks if they opened restaurants in new markets. Growth concepts typically don’t need to do that.
When did Papa Murphy's go public?
Papa Murphy's went public in May 2014 with all IPO proceeds used to pay down debt. The IPO pitch presented the Company as a high return, asset light, royalty-driven franchisor with significant geographic growth potential. Leading up to the IPO and since, the Company began to face decelerating organic growth and an increasing number of store failures (109 stores have gone out of business since the IPO). To optically mask these challenges, FRSH began buying failing franchise locations. This provided a temporary boost to the top line and prevented the store count growth from turning negative. These short-term actions, however, have very negative medium-term consequences. The result: FRSH went from an asset-light franchisor collecting high-margin royalties to an asset-intensive store operator. Below is a comparison of the Company's profile then and now:
What is the Papa Murphy's franchise dispute?
Franchisee Dispute: The Papa Murphy's Franchisee Association (PMFA) is now demanding answers to some of the same questions to some of the same issues that were raised in the franchisee lawsuit, misrepresenting performance outside the Pacific Northwest, overcharging franchisees for advertising, etc. (See previous article for further details).
Where did Papa Murphy's Pizza originate?
The Company's "take 'n' bake" pizza concept originated in the Pacific Northwest in the 1980s. Papa Murphy's itself was formed in 1995 when Papa Aldo's Pizza of Oregon and Murphy's Pizza of California merged. The franchise system expanded in that region over the ensuing 20 years and then in 2004 was acquired by the PE firm Charlesbank. The new owner sold new franchises in the Midwest and South, bringing the system to 1,000 stores in 2007. Charlesbank's growth strategy focused on low prices and the concept's ability to accept food stamps/EBT cards (more on this below). In mid-2010, the Company was acquired by sponsor Lee Equity Partners for $180M. Lee continued the Charlesbank game plan but also levered the Company up over the next four years.
Does FRSH accept food stamps?
Food Stamp Funding Decline: Competing pizza chains selling cooked pizzas cannot accept food stamps, but the raw pizza FRSH sells is categorized as a "grocery item" and thus eligible for purchase under government assistance programs. Approximately 10-15% of FRSH store-level sales are paid for by EBT. Government funding for these assistance programs has been getting cut and may be eliminated outright as it relates to the ability to buy FRSH pizzas. Many FRSH locations are very highly dependent on food stamp paying customers and will almost certainly fail as these subsidies continue to get curtailed.
Is FRSH going bankrupt?
FRSH is heading in this direction. It is likely the Company will be forced into a restructuring this year, an event which would result in a zero for the stock.
Is Papa Murphy's online ordering system a failure?
Papa Murphy's Online Ordering System a Fail: Last year FRSH started rolling out its own online ordering system despite the obvious fact that online ordering only makes sense for delivery. Why would anyone order something online that they have to pick up in person anyway? In response to the weak reception and low usage, FRSH started aggressively making 50% off promotions that franchisees are required to honor. Thus selling pizzas well below cost and only adding further pressure to the financially strained franchise base.
How many Papa Murphy's stores are there?
Papa Murphy’s ended the fourth quarter of fiscal 2018—announced March 14—with 106 company-run stores, which represented a net decrease of seven stores compared to Q3 and 39 less than Q4 2017. This reflects 10 closures over the last year and a net reduction of 29 stores that were franchised—a push Papa Murphy’s is making as it tracks back to at least a 95 percent franchised system with no more than 50 corporate units by 2020.
When will Papa Murphy's be rolled out?
Up next: adding a loyalty program. Spangler said Papa Murphy’s is in the process of selecting a partner and is targeting a systemwide rollout by late 2019.
What is Papa Murphy's career path?
In response, Papa Murphy’s developed an ongoing in-store career path training program it calls, “One Bit at a Time.”. The platform focuses on skills instead of positions, Spangler said. “The goal of the program is to empower crew and management members, adding value to the recruitment and retention process,” he said.
Does Papa Murphy have a mobile app?
This past fall, the company introduced a new mobile app as well. It focuses on seamless digital ordering, including favorites and the ability to quickly reorder with saved payment information. But it also integrated into Papa Murphy’s POS system, which has helped the chain minimize operational impact, Spangler said. He added the app has more than 243,000 downloads to data and generated almost as many orders.
Why is Papa Murphy’s closing?
The owner of Papa Murphy’s, Cold Stone Creamery, Pinkberry and dozens of other chains has temporarily closed 2,100 of its locations due to the coronavirus and on Monday said it had temporarily laid off more than half of its global workforce.
How many locations does Papa Murphy’s have?
Papa Murphy’s operates more than 1,300 locations in the U.S., Canada and the United Arab Emirates.
Where is Papa Murphy’s?
Papa Murphy’s is a take-and-bake pizza company based in Vancouver, Washington. It began in 1995 as the merger of two local take-and-bake pizza companies: Papa Aldo’s Pizza (founded in 1981) and Murphy’s Pizza (founded in 1984).
What size is Papa Murphy’s family pizza?
Papa Murphy’s has the most crust choices. Pick from the original recipe, fresh pan, stuffed, thin, and gluten-free in two different sizes: family (16 inches that serves 4 to 6 people) and large (14 inches that serves 3 to 4 people).
Will Papa Murphy’s sell just crust?
You can select the classic original crust in all sizes Papa Murphy’s offers. If you’re up for something new, select the new “Fresh Pan” crust. You can order large pizzas on this buttery and thick crust.
How much did Papa Murphy's stock close?
Papa Murphy’s shares closed at $4.89 on Wednesday, but jumped by more than 30 percent in the opening hours Thursday and remained at that point throughout the day, closing at $6.42.
Who is the CEO of Papa Murphy?
In the press release, MTY CEO Eric Lefebvre lauded Papa Murphy’s 35-year history, loyal customers and the growth potential of the pizza market, and said the merger would bring “tremendous opportunities” for MTY’s expansion in the United States. “This is an important transaction for MTY as we add a brand with a differentiated position in pizza ...
How much does MTY pay for Papa Murphy's stock?
MTY will acquire all shares of Papa Murphy’s stock for cash at $6.45 per share, for a total of approximately $190 million, the companies said. The acquisition would include Papa Murphy’s approximately $77.4 million debt, which MTY will repay using its credit and cash.
What was Papa Murphy's stock price in 2015?
But it falls far short of the high point the company reached in the summer of 2015, when its stock was routinely above $17 per share and peaked at a closing price of $21.47 per share. Papa Murphy’s stock began trending downward in the fall of 2015 and leveled out at around $5 per share in late 2016.
Where is Papa Murphy's Pizza located?
The company merged with a similar take-and-bake pizza chain from California called Murphy’s Pizza in 1995, adopting the name Papa Murphy’s and relocating to a new headquarters in Vancouver.
Where is Papa Murphy's headquarters?
It wasn’t clear Thursday what will happen to Papa Murphy’s Vancouver headquarters. But the Papa Murphy’s release says MTY looks forward to “maintaining the current support center in Vancouver, WA.”. The headquarters office was reported to employ 183 people as of 2014. Papa Murphy’s executives could not be reached for comment Thursday.
Where did MTY start?
The company dates its origins to 1979, when Canadian businessman Stanley Ma opened the restaurant Le Paradis du Pacifique in Montreal. He founded several additional restaurants and brands in the following few years, and MTY — originally incorporated as Golden Sky Resources Inc. — became the parent company for Ma’s growing catalog.
Can you buy cooked food with EBT?
EBT. You can buy it with EBT. You cannot buy cooked food with EBT.
Is Papa Murphy's cheaper than a chain?
Papa Murphy's is cheaper than getting one at a major chain.
Is Papa Murphy's frozen pizza better than normal pizza?
I skimmed the other answers, and I don't think anybody's mentioned the fact that it actually tastes better than normal frozen pizza, as well as being made to order. If you're ordering normie pizzas, like a four meat, yeah, it's not a lot different from normal. If you're ordering one of their stuffed pizzas, or one with a weird combo of stuff, you just can't get that frozen. And getting it at Papa Murphy's is cheaper than getting one at a major chain.
