Cafe 86 vs Papa Murphy's

Papa Murphy’s is the stronger software-sales opportunity right now, and the math is blunt: 965 franchised units versus 10. That’s a 96x TAM advantage, and in a land-and-expand sales motion, unit count is the engine. The approved-supplier procurement model means you can sell directly to owner-operators without first converting a franchisor gatekeeper—terrain that lets you build pipeline immediately. Budget signals also lean Papa Murphy’s: higher initial investment ranges ($450K–$693K) filter for operators with capital to spend on POS, scheduling, and marketing automation, and the 5% royalty leaves slightly more margin for tech than Cafe 86’s 6%.

The tradeoff is timing versus terrain. Cafe 86’s 41.67% unit growth is eye-catching, but it’s growth off a tiny base—roughly five new units a year. Even if you capture 100% of that new-store flow, the absolute revenue ceiling is low. Worse, Cafe 86’s franchisor-controlled procurement forces a single-threaded sales cycle: win the franchisor or get zero. Papa Murphy’s negative growth (-3.6%) is a real risk, but it also creates urgency for efficiency tools that can slow churn, and the installed base is large enough to absorb some contraction. When you weigh a small, fast-growing brand with a locked gate against a massive, open-terrain brand with a slight decline, the immediate pipeline math favors the latter every time.

Verdict: Papa Murphy’s wins on TAM, terrain, and accessible budget—the three dimensions that drive software bookings today.