Capriotti's Sandwich Shop vs Papa Murphy's

Papa Murphy’s wins on sheer TAM, and it’s not close. With 965 franchised units against Capriotti’s 138, the addressable base is 7x larger. Even a modest penetration rate delivers more seats than a near-100% sweep of Capriotti’s. Both brands are shrinking at roughly the same pace (‑3.5% vs ‑3.6%), so growth doesn’t tilt the scale. For a vendor selling POS, scheduling, and back‑office tools, unit count is the primary multiplier—and Papa Murphy’s simply puts more logos on the map.

The meaningful tradeoff is per‑unit budget. Capriotti’s higher initial investment ($595K–$935K) often correlates with higher AUV and more complex ops, which could mean a richer per‑store software spend. But Papa Murphy’s franchisees keep 3% more of revenue (7% royalty+ad vs. 10%), freeing up operating cash for tech. Without AUV data, we can’t bank on Capriotti’s outspending; what we can bank on is that 965 units with healthy margin retention create a deeper total wallet than 138 units with higher top‑line potential. Scale converts.

Timing and terrain reinforce the choice. Both use an approved‑supplier model, but landing a preferred vendor spot inside a 1,000‑unit system unlocks a repeatable sales motion that a 150‑unit chain can’t match. Papa Murphy’s 2026 FDD signals an active, current franchisor—often a green light for vendor conversations. The unit growth “edge” for Capriotti’s is a rounding error in negative territory; it doesn’t offset the 800‑unit gap.

Verdict: Papa Murphy’s is the stronger opportunity—its franchised unit count delivers a TAM that no plausible per‑unit spend advantage at Capriotti’s can overcome.