Papa Murphy’s Adds Pinkberry: Why Fixing the Pizza Business Should Come Before Adding Frozen Yogurt

 

If Papa Murphy’s is closing underperforming pizza restaurants, why should anyone believe adding frozen yogurt will fix the underlying problem asks Steven Johnson, Grocerant Guru®
Founder, Foodservice Solutions®, Tacoma, Washington.

That is the consumer test Papa Murphy’s and parent company MTY Food Group need to answer before celebrating their latest co-branding strategy.

Three franchise agreements to combine Papa Murphy’s Take ’n’ Bake pizza with Pinkberry frozen yogurt represent a business development announcement. They do not prove stronger consumer demand, more frequent visits, improved profitability, or a successful turnaround.

My challenge to Papa Murphy’s and MTY is simple: Prove that consumers want the combination before treating co-branding as a growth strategy.

Are consumers rejecting Papa Murphy’s because the brand is not meeting their needs? Or is management betting that adding a second brand will make the existing business more attractive?

That distinction matters.

From the perspective of the Grocerant Guru®, consumers do not organize their lives around corporate portfolios, franchise agreements, or shared real estate. They organize food purchases around eating occasions, convenience, taste, price, portability, and perceived value.

A family looking for dinner does not automatically want frozen yogurt. A consumer craving dessert does not automatically want take-and-bake pizza. Putting both brands under one roof may create operating efficiencies, but efficiencies alone do not guarantee incremental customers, repeat visits, or stronger profits.

If the combination generates new customers, more frequent visits, stronger transactions, and sustainable incremental profits, it deserves consideration. If it simply adds another operation to manage while the core pizza business struggles, this is not innovation solving a consumer problem. It is management adding complexity without yet proving the payoff.

That is the test every foodservice growth strategy should face: Does it make the brand more relevant to the consumer—or merely make the corporate portfolio look bigger?

What the Announcement Actually Says

On October 7, 2026, Papa Murphy’s announced three franchise agreements for its co-branded concept with Pinkberry. The locations are:

·       Sunriver, Oregon: Joshua and Samantha Kimzey plan to open their first location in both systems in early November 2026.

·       Santa Fe, New Mexico: Longtime Papa Murphy’s franchisee John Perea will add Pinkberry to his existing restaurant, which he has operated since 2010.

·       West Haven, Utah: Casey Kauer, who operates five Papa Murphy’s restaurants in Utah, plans to open a new co-branded location in summer 2027.

The company identifies shared real estate, labor, and operational resources as potential benefits. The concept also offers franchisees an opportunity to serve different eating occasions and develop additional revenue streams. MTY has identified other possible co-branding opportunities, including sweetFrog.

The important distinction: Three franchise agreements demonstrate interest in testing the model. They do not establish that consumers want the combination, that the economics will outperform a standalone restaurant, or that the concept can reverse Papa Murphy’s broader business challenges.

Those are separate questions, and the industry should not confuse them.

Problem No. 1: Papa Murphy’s Has a Core-Business Challenge

The facts: In July 2026, MTY said it expected to close between 45 and 50 underperforming Papa Murphy’s locations as part of a broader plan to close 68 corporate-owned restaurants across its portfolio. Industry reporting also indicated that Papa Murphy’s U.S. footprint had fallen more than 20% from its 2020 level.

MTY’s third-quarter fiscal 2026 results showed same-store sales declining 1.9% across its system, with the U.S. segment down 2.7%. Those figures cover MTY’s broader business, not Papa Murphy’s alone.

The Grocerant Guru® perspective: These figures make the consumer question more urgent. Before celebrating a new concept, management must establish whether the existing pizza business is attracting customers, retaining them, and generating attractive returns.

Adding another brand might help. It could also introduce additional inventory requirements, equipment needs, staffing demands, and marketing complexity.

The essential question is whether Pinkberry improves the economics of the pizza operation—or simply adds another business to manage.

A new revenue stream is not automatically a profitable one. Management needs to demonstrate that the combined concept produces incremental sales and profits after accounting for all associated costs.

Problem No. 2: More Menu Options Do Not Automatically Create More Demand

The facts: Papa Murphy’s and Pinkberry offer different but potentially complementary propositions. Papa Murphy’s sells take-home pizza that customers bake themselves. Pinkberry specializes in frozen yogurt and toppings.

Pizza can address a family dinner, while frozen yogurt can serve a dessert or snack occasion.

The Grocerant Guru® perspective: Complementary products do not necessarily produce complementary purchasing behavior.

A customer who buys pizza for dinner may not want frozen yogurt. Someone looking for an afternoon dessert may have no reason to visit a take-and-bake pizza store.

The concept must demonstrate that the combined offer creates incremental purchases rather than simply shifting existing Pinkberry or Papa Murphy’s transactions into a shared location.

That distinction matters because incremental sales are not the same as incremental profit.

Management should measure how many customers purchase from both brands, how many are new to each brand, how often customers return, and whether average transaction values and contribution margins improve.

Without that evidence, co-branding remains a hypothesis—not a proven growth strategy.

Problem No. 3: Operational Efficiency Is Not the Same as Customer Value

The facts: MTY promotes shared real estate, labor, and operational efficiencies as benefits of the co-branding model. In Santa Fe, franchisee John Perea has cited seasonality as one reason the combination appealed to him, including the potential to support year-round employment.

These are legitimate business considerations.

The Grocerant Guru® perspective: A lower-cost operating model does not automatically deliver a better customer experience.

Consumers continue to evaluate food quality, price, convenience, service, and whether a purchase fits the occasion. If the combined operation creates confusing ordering, slower service, inconsistent product quality, or an unconvincing value proposition, the projected efficiencies may not translate into customer loyalty.

The brands must also protect their individual identities. Papa Murphy’s must remain relevant to customers seeking a convenient take-home meal, while Pinkberry must offer a compelling frozen-dessert experience.

The winning formula is not simply two signs on one building. It is two distinct customer needs served effectively through a coordinated operation.

The Consumer Test: Five Measures That Matter

Before expanding the concept, Papa Murphy’s and MTY should evaluate five measurable outcomes.

1. Incremental customers. Are new customers entering because of the combined concept, or are existing customers simply switching locations?

2. Cross-brand purchasing. What percentage of pizza transactions also include Pinkberry, and vice versa? Are customers genuinely buying across both brands?

3. Visit frequency. Does the combination give customers a reason to visit more often throughout the week?

4. Profitability. After labor, food costs, equipment, marketing, and occupancy expenses, does the combined operation generate stronger returns than the alternatives?

5. Brand preference. When customers choose between competing pizza, take-home meal, and dessert options, does the combined offer improve the likelihood that they choose these brands?

These measures would help distinguish a promising franchise development story from a genuinely successful consumer strategy.

e Grocerant Guru® Recommendations

1. Build around eating occasions, not just co-branding.

Map the customer journey from dinner planning to dessert. Test family meal bundles, pizza-and-dessert offers, and promotions that give customers a clear reason to purchase from both brands. Measure incremental sales rather than relying on bundle redemptions alone.

2. Make value visible to the consumer.

The combined concept must deliver a compelling reason to choose it over buying pizza and dessert elsewhere. Test price points, portions, family offers, and promotional combinations. Track repeat purchases and contribution margins so discounting does not create the illusion of growth.

3. Prove the model before scaling it.

Use the three locations as a disciplined learning opportunity. Establish baseline performance, measure cross-brand purchases, compare results with appropriate standalone locations, and evaluate the findings before committing to a broader rollout.

Three Grocerant Guru® Insights

Insight No. 1: Fix the Core Before Adding Another Concept.

Co-branding is not a substitute for consumer relevance. Papa Murphy’s must demonstrate that it can attract customers, earn repeat visits, and deliver a compelling Price Value Service Equilibrium. Adding Pinkberry may create another revenue opportunity, but the real measure is whether it strengthens the underlying business.

Insight No. 2: Sell More Eating Occasions, Not Just More Menu Items.

Consumers think in terms of breakfast, lunch, dinner, snacks, and dessert—not corporate brand portfolios. Papa Murphy’s and Pinkberry must prove that their combination creates incremental purchases across those occasions. Shared real estate is an operating strategy; winning more consumer occasions is a growth strategy.

Insight No. 3: Measure Consumer Behavior Before Expanding the Footprint.

Three co-branded locations offer an opportunity to test the concept, not declare victory. Measure new customer acquisition, cross-brand purchases, repeat visits, average transaction value, and incremental profitability. If the numbers demonstrate sustained consumer demand, expand. If they do not, management should resist confusing franchise development with brand growth.

The Bottom Line: Follow the Consumer, Not the Logo

Papa Murphy’s and Pinkberry may have found a workable way to share space, labor, and customer occasions. That possibility deserves a fair test.

But Papa Murphy’s store closures and MTY’s declining U.S. same-store sales make it especially important to distinguish franchise expansion from consumer-led growth. Three signed agreements are a starting point, not a verdict.

The Grocerant Guru® perspective is straightforward: A new concept is only as good as the consumer behavior it changes.

If the combination attracts new customers, increases visit frequency, strengthens brand preference, and generates sustainable incremental profit, it deserves consideration for expansion. If it merely adds operational complexity while the core business continues to struggle, it risks becoming a distraction dressed up as innovation.

Foodservice brands do not grow simply by combining logos. They grow by earning more consumer occasions, delivering meaningful value, and giving people a reason to come back.

Prove the consumer demand first. Celebrate the expansion second.

Steven Johnson, Grocerant Guru®
Founder, Foodservice Solutions®
Tacoma, Washington