PORTLAND, Ore. — In a decisive move to counter contracting store counts and shifting consumer habits, Papa Murphy’s International, the nation’s leading take-and-bake pizza chain, has announced a strategic co-branding initiative with frozen yogurt pioneer Pinkberry. This partnership, orchestrated by parent company MTY Food Group, aims to transform the traditional take-and-bake experience into a multi-daypart destination, offering franchisees a more robust revenue model and consumers a "one-stop-shop" for dinner and dessert.

The initiative will debut with three pilot locations across Oregon, New Mexico, and Utah over the coming year. This move signals a broader shift within the MTY Food Group portfolio to leverage its diverse brand stable to maximize real estate efficiency and capture a wider share of the "at-home dining" wallet.

Main Facts: A Dual-Brand Architecture for the Modern Consumer

The core of the announcement, made on October 7, 2026, centers on the integration of Pinkberry—a brand synonymous with the premium frozen yogurt craze of the mid-2000s—into the footprint of Papa Murphy’s stores. Unlike traditional pizza restaurants, Papa Murphy’s does not cook its pizzas on-site, a model that significantly reduces overhead costs related to industrial ovens, venting, and high-energy consumption. By adding Pinkberry, MTY Group is introducing an immediate-consumption product into a retail environment historically focused on future consumption.

The Pilot Locations

The rollout is strategically distributed across three distinct markets to test various operational environments:

1. Sunriver, Oregon: Operators Joshua and Samantha Kimzey are slated to open a new-build co-branded unit in November 2026. This location will serve as the primary test case for a ground-up integrated design.
2. Santa Fe, New Mexico: Veteran franchisee John Perea will retrofit his existing Papa Murphy’s location to include a Pinkberry counter, testing the feasibility of converting the current 1,000+ store network.
3. West Haven, Utah: Casey Kauer, who manages a five-unit portfolio, will launch a co-branded site in the summer of 2027, focusing on the suburban family demographic that forms the bedrock of both brands’ customer bases.

The synergy rests on the "seasonal offset" theory. Pizza sales typically peak during colder months and major sporting events, while frozen yogurt demand surges during the spring and summer. By housing both under one roof, MTY Group hopes to level out the cyclical cash flow dips that often plague single-concept franchisees.

Chronology: From Take-and-Bake Dominance to Strategic Realignment

To understand the necessity of this co-branding pivot, one must look at the trajectory of Papa Murphy’s over the last decade.

• 2019: The Acquisition. MTY Food Group, a Canadian franchising giant, acquired Papa Murphy’s for approximately $190 million. At the time, Papa Murphy’s was struggling with declining same-store sales as delivery giants like Domino’s and Third-Party Delivery (3PD) apps made "convenience" synonymous with "cooked and delivered," rather than "fresh and take-home."
• 2020-2022: The Pandemic Surge and Retreat. The COVID-19 pandemic initially provided a lifeline for take-and-bake. With dining rooms closed, families turned to Papa Murphy’s as a safe, high-quality meal kit alternative. However, as the world reopened in late 2022 and 2023, the brand faced renewed pressure from a hyper-competitive pizza market and rising labor costs.
• 2023-2024: Portfolio Right-Sizing. The brand’s store count saw a significant contraction, dropping from 1,168 units in 2023 to 1,014 in 2024. In July 2024, MTY Group signaled a more aggressive approach to underperforming units, announcing the potential closure of up to 50 corporate-owned stores.
• The Co-Branding Blueprint: During this same period, MTY began seeing success with other "dual-concept" pairings within its Kahala Brands division. The successful pairing of Wetzel’s Pretzels with Cold Stone Creamery provided the empirical evidence needed to greenlight the Papa Murphy’s/Pinkberry experiment.

Supporting Data: The Economics of the Co-Branded Footprint

The decision to merge these brands is rooted in rigorous financial logic. According to industry analysts, co-branding can reduce occupancy costs as a percentage of sales by 15% to 25% by sharing square footage, utilities, and back-of-house infrastructure.

Store Count and Market Pressure

The pizza industry is currently a $75 billion market in the U.S., dominated by "The Big Four" (Domino’s, Pizza Hut, Papa Johns, and Little Caesars). For a niche player like Papa Murphy’s, which occupies the "Premium/Fresh" segment, the lack of a delivery-first infrastructure has been a hurdle.

The "Daypart" Strategy

Papa Murphy’s traditional peak hours are 4:00 PM to 7:00 PM (the dinner rush). Pinkberry, conversely, sees significant traffic in the "afternoon snack" window (2:00 PM to 4:00 PM) and the "late-night dessert" window (7:00 PM to 9:00 PM). By combining the two, a franchisee can theoretically maintain high labor productivity across a 10-hour operating window rather than a 3-hour window.

Furthermore, Pinkberry’s operational model is remarkably "low-friction." It requires no ovens and minimal prep compared to a full-service kitchen, making it an ideal "plug-and-play" addition to the existing Papa Murphy’s prep-heavy but cook-light environment.

Official Responses: Leadership Perspectives on Growth

Ray Zandi, Vice President of U.S. Development at MTY Food Group, has been the primary architect of this rollout. In official statements, Zandi emphasized that this is not merely a defensive play against closures, but an offensive play for the "next generation" of franchisees.

"These brands in particular pair well together and also offset each other seasonally," Zandi stated. "This will greatly assist in growth and a faster ROI in the future for candidates that wish to explore co-brands as ways to develop new stores with either brand."

Zandi also highlighted the flexibility of the MTY portfolio, suggesting that Pinkberry is just the beginning. "By combining Papa Murphy’s and Pinkberry, or sweetFrog or some of the other less labor-intensive concepts, we’re creating a differentiated concept that gives owners greater flexibility while delivering a convenient, high-quality experience for guests."

The franchisees involved in the pilot have also expressed optimism. For John Perea in Santa Fe, the addition of Pinkberry represents an opportunity to capture the "impulse buy" that has traditionally been missing from the take-and-bake model. While customers wait for their dough to be pressed and topped, the presence of a premium frozen yogurt bar provides an immediate gratification hook.

Implications: The Future of the Franchising Landscape

The Papa Murphy’s-Pinkberry venture has broader implications for the Quick Service Restaurant (QSR) industry at large.

1. The Death of the "Single-Purpose" Retail Space

As commercial real estate prices remain high and prime "end-cap" locations in suburban strips become harder to secure, the "two-for-one" brand model is becoming a necessity. Landlords are increasingly favoring tenants who can drive traffic throughout the day, rather than just during meal peaks. If the MTY pilot succeeds, it could lead to a wholesale reimagining of the Papa Murphy’s footprint, moving away from 1,500-square-foot pizza shops toward 2,000-square-foot "mini-food courts."

2. Labor Efficiency and Cross-Training

One of the greatest challenges in modern franchising is labor retention. Co-branded stores allow for more diverse work tasks, which can improve employee engagement. A staff member might spend the morning prepping fresh vegetables for pizzas and the afternoon managing the Pinkberry topping station. This variety, combined with the ability to offer more consistent hours due to expanded dayparts, could help Papa Murphy’s franchisees combat the ongoing labor shortage.

3. Digital Integration and Loyalty

MTY Group has been working to revitalize Papa Murphy’s digital presence and rewards program. The co-branded model offers a unique opportunity for "cross-pollination" marketing. For example, a customer ordering a "Family Size" pizza via the app could receive a targeted offer for a discounted Pinkberry pint. This data-driven approach to upselling is far more effective in a co-branded environment where the fulfillment happens at a single point of sale.

4. The Take-and-Bake Identity Crisis

The move does raise questions about brand identity. Papa Murphy’s has long marketed itself on the "Freshness" and "Home-Baked" experience. Adding a highly processed, "treat-style" product like frozen yogurt could potentially dilute that "wholesome dinner" messaging. However, in an era where consumers value convenience and variety above all else, the risk of brand dilution appears to be outweighed by the potential for financial stability.

Conclusion: A High-Stakes Pivot

The next 12 months will be a "proof of concept" period for MTY Food Group. If the locations in Oregon, New Mexico, and Utah show a marked increase in average check size and total transaction count without significantly increasing labor costs, the industry can expect a rapid acceleration of this co-branding strategy.

For Papa Murphy’s, this is more than just adding yogurt to the menu; it is a fundamental restructuring of its business model to survive in a post-pandemic, delivery-saturated world. By leaning into the "sweet and savory" synergy, MTY Group is betting that the path to a franchisee’s heart—and their bottom line—is through a more diversified and resilient storefront.