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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.
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.
