VANCOUVER, Wash. — In a decisive move to counter contracting store counts and evolving consumer habits, Papa Murphy’s International has announced a strategic co-branding partnership with frozen yogurt pioneer Pinkberry. The initiative, orchestrated by parent conglomerate MTY Food Group, will see the launch of three pilot locations designed to test the synergy between take-and-bake pizza and premium frozen desserts.
The announcement, made on October 7, 2026, signals a fundamental shift in how the world’s largest take-and-bake pizza chain intends to utilize its physical footprint. By integrating Pinkberry into its operational model, Papa Murphy’s aims to capture additional "dayparts"—specifically the mid-afternoon and late-evening dessert rushes—while providing franchisees with a more robust, year-round revenue stream.
Main Facts: A Dual-Brand Strategy for a New Retail Era
The core of the announcement involves the opening of three distinct co-branded units across three states over the next twelve months. These locations are not merely adjacent storefronts but integrated operations designed to leverage shared labor and real estate.
The Pilot Locations
The rollout is scheduled as follows:
- Sunriver, Oregon: Operators Joshua and Samantha Kimzey are slated to open a new integrated unit in November 2026.
- Santa Fe, New Mexico: Long-time franchisee John Perea will retrofit an existing Papa Murphy’s location to include a Pinkberry service counter.
- West Haven, Utah: Casey Kauer, who currently manages five Papa Murphy’s units, will open a ground-up co-branded facility in the summer of 2027.
Strategic Synergy
The partnership is built on the concept of "seasonal and daypart offsetting." Papa Murphy’s traditionally sees its highest volume during dinner hours and colder months when consumers prefer a hot, home-baked meal. Conversely, Pinkberry thrives in the afternoon and during the summer months. By combining these two profiles, MTY Food Group expects to flatten the volatility of the sales cycle for individual operators.
Chronology: From Contraction to Convergence
The path to this co-branding strategy follows a turbulent period for the Papa Murphy’s brand. To understand the significance of the Pinkberry partnership, one must look at the timeline of the brand’s recent restructuring.
2023–2024: The Period of Contraction
According to recent franchise disclosure documents, the Papa Murphy’s system saw a significant reduction in its domestic footprint. The store count dropped from 1,168 units at the start of 2023 to 1,014 by the end of 2024. This decline was attributed to a combination of expiring leases, rising labor costs, and a shift in consumer preference toward third-party delivery of fully cooked meals.
July 2026: Corporate Consolidation
Earlier this year, MTY Food Group announced a rigorous "portfolio optimization" plan. This included the projected closure of up to 50 underperforming corporate-owned Papa Murphy’s locations. The company signaled that "business as usual" was no longer an option for low-volume stores, setting the stage for a more creative approach to real estate.
October 2026: The Pivot to Co-Branding
The October 7 announcement represents the culmination of several months of internal testing within MTY’s Kahala Brands division. Having seen success with other dual-brand concepts, the company fast-tracked the Papa Murphy’s-Pinkberry integration as a primary growth vehicle for the 2027 fiscal year.
Supporting Data: The Economics of Shared Space
The move toward co-branding is supported by compelling economic data regarding franchise profitability and operational efficiency.
Labor Efficiency and "Low-Intensity" Models
Both Papa Murphy’s and Pinkberry are classified as "low-intensity" concepts regarding kitchen operations.
- Papa Murphy’s: Because the product is baked by the consumer at home, the stores do not require commercial ovens, venting hoods, or high-temperature grease traps.
- Pinkberry: The frozen yogurt model relies on automated dispensing and cold-prep topping stations.
By combining these, a single manager can oversee both brands, and a cross-trained staff can pivot from pizza assembly to yogurt service depending on the time of day. This significantly lowers the labor-to-sales ratio, which has been a primary pain point for franchisees in the post-pandemic economy.
Real Estate Optimization
In the current commercial real estate market, securing 1,200 to 1,500 square feet for a single-concept brand can often lead to "dead zones" during off-peak hours. The co-branded model allows for a higher "sales per square foot" metric. In the Santa Fe conversion, for example, the franchisee is utilizing under-leveraged floor space to add a Pinkberry counter, effectively increasing the revenue potential of the same rent check.
Brand Health Metrics
While the store count has declined, MTY Group reported that menu optimization and an updated rewards program have begun to stabilize digital sales. The integration of Pinkberry is expected to act as a "traffic driver," bringing in a younger demographic that may not have previously considered take-and-bake pizza for their evening meal.
Official Responses: Leadership and Franchisee Perspectives
The leadership at MTY Food Group views this not as an experiment, but as a proven playbook being applied to a new sector of their portfolio.
Ray Zandi, Vice President of U.S. Development at MTY Food Group, emphasized the logistical advantages:
“These brands in particular pair well together and also offset each other seasonally. This will greatly assist in growth and a faster ROI for candidates who wish to explore co-brands as ways to develop new stores. By combining Papa Murphy’s and Pinkberry, or even our sweetFrog concept, we’re creating a differentiated concept that gives owners greater flexibility.”
Zandi further noted that the early feedback from the franchise community has been overwhelmingly positive, particularly among multi-unit operators looking to diversify their risk without leaving the MTY ecosystem.
The Franchisee Perspective:
For operators like John Perea in Santa Fe, the move is about modernization. Franchisees have noted that the "take-and-bake" model, while unique, benefits from having a "grab-and-go" immediate consumption item like frozen yogurt to satisfy customers who want something to eat the moment they leave the store.
Implications: A New Blueprint for the Pizza Industry
The implications of this move extend beyond Papa Murphy’s and Pinkberry, potentially signaling a broader trend in the Quick Service Restaurant (QSR) industry.
The Survival of Take-and-Bake
For years, analysts questioned whether Papa Murphy’s could survive in an era of 15-minute delivery from competitors like Domino’s and Little Caesars. The co-branding strategy suggests that Papa Murphy’s is leaning into its identity as a "grocery-plus" destination. By adding Pinkberry, the stores become a "one-stop shop" for a family meal and dessert, a proposition that third-party delivery apps struggle to replicate efficiently due to the melting point of frozen yogurt and the logistics of multi-stop orders.
The Kahala Playbook
MTY’s Kahala Brands has already successfully paired Wetzel’s Pretzels with Cold Stone Creamery and Planet Smoothie with sweetFrog. This "modular" approach to franchising allows the parent company to act as a buffet of brands for investors. If the Papa Murphy’s-Pinkberry pilot succeeds, it is likely that MTY will begin offering "triple-threat" locations or "mini-food courts" in suburban strip malls, further consolidating their market share.
Challenges Ahead
Despite the optimism, the strategy is not without risk. Brand dilution is a constant concern in co-branding; the company must ensure that the premium "boutique" feel of Pinkberry is not diminished by the utilitarian, "value-driven" atmosphere of a pizza prep station. Furthermore, the logistical complexity of managing two separate supply chains—one for fresh dough and produce, another for dairy bases and fruit toppings—will require precision from MTY’s distribution partners.
Conclusion
As the first co-branded location prepares to open its doors in Sunriver this November, the industry will be watching closely. If MTY Group can prove that the "Pizza-and-Froyo" model boosts the bottom line, it may provide the necessary blueprint to save the take-and-bake category from further contraction. For now, the move represents a bold bet on the idea that in the modern food landscape, two brands are indeed better than one.
