Problem Solution Essay on Papa Murphy's Pizza: Shackled by Problems & Soaked in Debt

Paper Type:  Essay
Pages:  3
Wordcount:  619 Words
Date:  2023-01-04

Papa Murphy's Pizza used to be a well-performing company and a lucrative one to invest. However, the company has been shackled by problems from different directions which have frustrated its performance. The problems that the chain suffers were both self-inflicted and environmental business factors. According to Maze (2019) the chain is the victim of consumers' shift forward convenience. Papa Murphy's Pizza is soaked in debt, which is disproportional to the size of its franchise system. During the time of IPO savage performance, the company had a debt of $170 million in debt. Obviously, most of the companies are financed with debts, but too much debt for Papa Murphy's became a challenge to oblige (Maze, 2019). The debt left the franchise incapable of managing the increasing competition, as well as the consumers' growing demand for convenience.

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Among the problems is that the company is facing two main lawsuits. McWilliams (2019) argues that short after the IPO, franchisees sued the chain, claiming the company's financial projections irrespective to the regulations of the Southern states where the chain is expanding. Though it sourced investors notion on the concept, and the stock price hardly rose on its initial days of trading, which was an extraordinary weak performance at the time when the IPOs are established to certify the stock 'pops' on their first day of trading. Furthermore, Papa Murphy's Pizza took long to adapt to the online ordering systems and mobile app to handle the increasing customers' demand, hence making it impossible to maximize its sales. Some months later after the company lost its grounds in the market, most of its top management fled the sinking ship, and this included the CEO, the chairman, together with the sales team.

Strategic Solution to the Problem

Although Papa Murphy's Holdings sales reports show improvement for the last quarter of 2018 and met the profits expectation; still the company has a lot to do to increase its profit margin and to become capable of obliging to its high debts, restore its financial status and stick performance. The core means the company can strategize at improving is its sales, and this will require modern tactics. The solution we are seeking is: How we can fix the problem of the chain to adapt to the increasing demands by maximizing the sales and regain its reputation?

The company should effectively adapt to the internet-based and mobile app ordering systems. Most of the clients find it convenient to make orders while at their convenient location and delivered to them on time. Papa Murphy's Pizza needs to benchmark on how Dominions, KFC, and PIZZA HUT are adapting to technology as a means of improving the way they offer services. The company can work out on how to do deliveries to their client and outsmart its competitors. The online system should also be used in advertising the brand and informing the customers on the new offers and discount. This will entice customers to shift from their competitors and consider Papa Murphy's Pizza attractive offers (Maze, 2019).

Meeting the sales target will increase the profit margin for the company and so do the company's shares soaring; indeed this will be a long-lasting solution to the problems the company is facing. That way the company will get funds to repay its debts, and perform in its IPO. The mobile app and internet-based marketing, ordering, sales system, will cut the cost of doing sales and marketing and the overall operation costs.


Maze, J. (2019). Papa Murphy's stock soars after sales, profits beat expectations. Retrieved from

Maze, J. (2019). Why Papa Murphy's is shrinking. Retrieved from

McWilliams, J. (2019). Recent Movement: Papa Murphy's (NASDAQ: FRSH). Retrieved from

Cite this page

Problem Solution Essay on Papa Murphy's Pizza: Shackled by Problems & Soaked in Debt. (2023, Jan 04). Retrieved from

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