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Papa Murphy's same-store sales fall 4%Papa Murphy's same-store sales fall 4%

Take-and-bake chain cites competitive market for sales woes

Bret Thorn, Senior Food Editor

August 3, 2016

2 Min Read
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Papa Murphy’s Holdings, Inc. turned around a net loss of $1.4 million, or 9 cents per share, to net income of $952,000, or 6 cents per share, even as same store sales fell by 4 percent compared to the second quarter of 2015.

Revenue for the take-and-bake pizza chain was up by 2.7 percent to $29.9 million for the second quarter of 2016, which ended June 27.

The Vancouver, Wash-based chain opened 28 new stores during the quarter, all in the United States.

“We continued to face top-line challenges throughout the second quarter as a result of an increasingly competitive landscape,” president and CEO Ken Calwell said in a press release announcing the quarterly earnings, “including significantly more aggressive value offerings across pizza and other foodservice, lower seasonal and absolute media levels, and the impact from our first quarter marketing shift to promote online ordering that extended into the early part of the second quarter.

“In spite of the near-term challenges, we continue to believe that our strategies are on point and will drive long-term top line growth and profitability,” he added.

He said the company had opened 53 units so far in the fiscal year — 17 units more than the first half of 2015. He attributed the accelerated growth to changes made in the franchising model in the second half of last year that lowered the cost and speeded up the process of building franchises.

Going into the second half of the year, Calwell said the chain’s marketing strategy would focus on “traditional pizza offerings sharply focused on value and product innovation with a secondary focus on acquiring new customers and migrating existing customers to online ordering.”

The company closed out the quarter with 156 company-owned restaurants, 1,375 domestic franchised restaurants, and 39 international locations.

Contact Bret Thorn at [email protected].
Follow him on Twitter: @foodwriterdiary

About the Author

Bret Thorn

Senior Food Editor, Nation's Restaurant News

Senior Food & Beverage Editor

Bret Thorn is senior food & beverage editor for Nation’s Restaurant News and Restaurant Hospitality for Informa’s Restaurants and Food Group, with responsibility for spotting and reporting on food and beverage trends across the country for both publications as well as guiding overall F&B coverage. 

He is the host of a podcast, In the Kitchen with Bret Thorn, which features interviews with chefs, food & beverage authorities and other experts in foodservice operations.

From 2005 to 2008 he also wrote the Kitchen Dish column for The New York Sun, covering restaurant openings and chefs’ career moves in New York City.

He joined Nation’s Restaurant News in 1999 after spending about five years in Thailand, where he wrote articles about business, banking and finance as well as restaurant reviews and food columns for Manager magazine and Asia Times newspaper. He joined Restaurant Hospitality’s staff in 2016 while retaining his position at NRN. 

A magna cum laude graduate of Tufts University in Medford, Mass., with a bachelor’s degree in history, and a member of Phi Beta Kappa, Thorn also studied traditional French cooking at Le Cordon Bleu Ecole de Cuisine in Paris. He spent his junior year of college in China, studying Chinese language, history and culture for a semester each at Nanjing University and Beijing University. While in Beijing, he also worked for ABC News during the protests and ultimate crackdown in and around Tiananmen Square in 1989.

Thorn’s monthly column in Nation’s Restaurant News won the 2006 Jesse H. Neal National Business Journalism Award for best staff-written editorial or opinion column.

He served as president of the International Foodservice Editorial Council, or IFEC, in 2005.

Thorn wrote the entry on comfort food in the Oxford Encyclopedia of Food and Drink in America, 2nd edition, published in 2012. He also wrote a history of plated desserts for the Oxford Companion to Sugar and Sweets, published in 2015.

He was inducted into the Disciples d’Escoffier in 2014.

A Colorado native originally from Denver, Thorn lives in Brooklyn, N.Y.

Bret Thorn’s areas of expertise include food and beverage trends in restaurants, French cuisine, the cuisines of Asia in general and Thailand in particular, restaurant operations and service trends. 

Bret Thorn’s Experience: 

Nation’s Restaurant News, food & beverage editor, 1999-Present
New York Sun, columnist, 2005-2008 
Asia Times, sub editor, 1995-1997
Manager magazine, senior editor and restaurant critic, 1992-1997
ABC News, runner, May-July, 1989

Education:
Tufts University, BA in history, 1990
Peking University, studied Chinese language, spring, 1989
Nanjing University, studied Chinese language and culture, fall, 1988 
Le Cordon Bleu Ecole de Cuisine, Cértificat Elémentaire, 1986

Email: [email protected]

Social Media:
LinkedIn: https://www.linkedin.com/in/bret-thorn-468b663/
Facebook: https://www.facebook.com/bret.thorn.52
Twitter: @foodwriterdiary
Instagram: @foodwriterdiary

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