The landscape of the American quick-service restaurant (QSR) industry is undergoing a fundamental transformation as legacy brands seek innovative ways to maximize real estate efficiency and capture broader consumer demographics. In a significant move aimed at diversifying revenue streams and stabilizing its market footprint, Papa Murphy’s, the nation’s leader in take-and-bake pizza, announced on October 7, 2026, a strategic partnership to co-brand locations with the premium frozen yogurt pioneer, Pinkberry.
This initiative, spearheaded by parent company MTY Food Group, represents a calculated effort to marry the savory, dinner-centric appeal of Papa Murphy’s with the sweet, snack-oriented draw of Pinkberry. By integrating these two distinct brands under one roof, the company aims to address long-standing challenges regarding "dayparts"—the specific times of day when customers visit—and seasonal fluctuations in demand.
Main Facts: A Dual-Brand Expansion Strategy
The core of the announcement centers on the launch of three pilot co-branded restaurants scheduled to open or transition over the next twelve months. These locations are strategically spread across three different states—Oregon, New Mexico, and Utah—to test the concept’s viability in diverse geographic markets.
The initiative is designed to provide franchisees with a "plug-and-play" model that increases the average check size and encourages more frequent visits. While Papa Murphy’s has traditionally dominated the "what’s for dinner" decision-making process, Pinkberry offers a high-margin dessert option that appeals to the afternoon snack crowd and late-night treat seekers.
Key Details of the Rollout:
- Sunriver, Oregon: Operators Joshua and Samantha Kimzey are slated to open a new co-branded restaurant in November 2026. Sunriver, a popular resort community, provides a unique testing ground where vacationing families often seek both easy dinner solutions and premium desserts.
- Santa Fe, New Mexico: Long-time franchisee John Perea will retrofit his existing Papa Murphy’s location to include a Pinkberry counter. This "bolt-on" approach demonstrates how current owners can revitalize existing real estate without the overhead of a completely new site.
- West Haven, Utah: Casey Kauer, an experienced multi-unit operator with five Papa Murphy’s locations, will open a ground-up co-branded unit in the summer of 2027.
The strategy relies on the "less labor-intensive" nature of both concepts. Because Papa Murphy’s does not cook its pizzas on-site and Pinkberry utilizes a self-serve or streamlined counter service model, the operational complexity of running two brands is significantly lower than a traditional full-service kitchen pairing.
Chronology: From Consolidation to Innovation
To understand the necessity of this co-branding pivot, one must look at the recent trajectory of Papa Murphy’s under the stewardship of MTY Food Group.
2023–2024: A Period of Contraction
The take-and-bake giant faced significant headwinds as consumer habits shifted in the post-pandemic economy. According to franchise disclosure documents, the system saw a notable decline in its total store count, dropping from 1,168 units in 2023 to 1,014 by the end of 2024. This contraction was largely attributed to the closure of underperforming units in oversaturated markets and the rising costs of labor and ingredients.
July 2026: The Corporate Realignment
In a mid-year financial update, MTY Group announced a plan to close up to 50 underperforming corporate-owned Papa Murphy’s stores. This move was described as a "pruning" of the portfolio to ensure that only the most profitable and efficient locations remained. During this period, leadership began signaling a shift toward "multi-concept" franchising.
October 2026: The Co-Branding Announcement
Following the successful integration of other brands within the MTY portfolio—most notably Wetzel’s Pretzels and Cold Stone Creamery—the company officially greenlit the Papa Murphy’s/Pinkberry hybrid. This marks the first major attempt to pair the take-and-bake pizza model with a premium frozen treat brand on a multi-state scale.
Supporting Data: The Economics of the "Dual-Brand" Model
The decision to pair these two specific brands is rooted in data regarding consumer behavior and operational overhead.
1. Diversifying Dayparts
Papa Murphy’s revenue is heavily weighted toward the 4:00 PM to 8:00 PM window. Conversely, Pinkberry sees peak traffic during the mid-afternoon "snack" period and the post-dinner dessert hour. By combining the two, franchisees can effectively double their "peak" operating hours without a proportional increase in rent.
2. Seasonal Offsetting
Pizza sales typically peak during the colder winter months and major sporting events (e.g., the Super Bowl). Frozen yogurt, meanwhile, sees its highest demand during the spring and summer. This seasonal "see-saw" effect helps stabilize cash flow for franchisees throughout the fiscal year.
3. Real Estate Efficiency
The "store-within-a-store" model allows MTY Group to maximize the "sales per square foot" metric. In many cases, a Papa Murphy’s unit has excess lobby space that can be converted into a Pinkberry kiosk. This reduces the "barrier to entry" for franchisees who want to expand their portfolio without the massive capital expenditure required for a standalone building.
4. Digital Sales and Loyalty
MTY Group has been aggressive in updating its digital infrastructure. The co-branded stores will eventually utilize a unified rewards program, allowing a customer to earn points on a family-sized pepperoni pizza and redeem them for a pomegranate yogurt with fresh fruit. This cross-pollination of loyalty data is expected to increase the "Lifetime Value" (LTV) of the average customer.
Official Responses: Leadership Perspectives
Ray Zandi, the Vice President of U.S. Development at MTY Food Group, has been the primary architect of this expansion strategy. In official statements, Zandi emphasized that the move is about more than just adding menu items; it is about changing the fundamental business model of the franchise.
"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 [Return on Investment] in the future for candidates that wish to explore co-brands as ways to develop new stores."
Zandi also highlighted the flexibility of the MTY portfolio, noting that while Pinkberry is the current focus, other brands like sweetFrog or Planet Smoothie could also be integrated into the Papa Murphy’s ecosystem depending on the specific demographics of a neighborhood.
"The early responses to our co-brand concept reinforce the strength of these brands individually and the even greater potential they have together," Zandi added. "We’re creating a differentiated concept that gives owners greater flexibility while delivering a convenient, high-quality experience for guests."
Franchisees have also expressed cautious optimism. For long-time owners like John Perea, the addition of Pinkberry represents a "fresh coat of paint" on a proven business model, offering a way to capture the younger, health-conscious demographic that Pinkberry attracts.
Implications: The Future of the Take-and-Bake Model
The success or failure of the Papa Murphy’s and Pinkberry pilot will likely serve as a bellwether for the entire QSR industry. There are several broad implications to consider:
The End of the "Single-Concept" Store?
As commercial real estate prices remain high and labor markets stay tight, the era of the small, single-purpose storefront may be coming to a close. We are seeing a "Yum! Brands-ification" of the industry, where brands like Taco Bell, KFC, and Pizza Hut are frequently housed together. MTY Group is applying this "power of three" (or two) to its niche brands to compete with larger conglomerates.
Survival of the Take-and-Bake Niche
Papa Murphy’s occupies a unique space between a grocery store frozen pizza and a delivered Domino’s pizza. By adding a "destination" product like Pinkberry, the company is attempting to transform its stores from a mere errand-stop into a "food destination." This could be the key to reversing the store-count decline seen in 2024.
Operational Synergies and Labor
One of the greatest threats to modern franchising is the labor shortage. Co-branded stores allow for "cross-training" of employees. A staff member can be trained to prep a "Cowboy Pizza" in the morning and swirl a "Swirly" yogurt in the afternoon. This creates a more dynamic work environment and allows the franchisee to offer more hours to a smaller, more dedicated team, rather than managing two separate staffs.
Menu Optimization and Consumer Choice
The move coincides with Papa Murphy’s broader menu optimization efforts. By focusing on "high-quality experiences," the brand is distancing itself from the "budget" pizza category and leaning into its identity as a premium home-meal solution. Pinkberry, which carries a premium price point and a "luxury" frozen yogurt reputation, fits perfectly with this upscale shift.
Conclusion
The October 2026 announcement is a clear signal that Papa Murphy’s is no longer content with being "just" a pizza chain. Under the umbrella of MTY Food Group, the brand is evolving into a versatile platform for multi-category food service. While the pilot program is currently limited to three states, the underlying logic—maximizing ROI through daypart diversification and seasonal balancing—suggests that if successful, the "Pizza and Froyo" duo could soon become a common sight in suburban shopping centers across the United States. For a brand that has seen its unit count dip in recent years, this co-branding strategy may not just be an expansion—it may be a lifeline.
