Philz, the coffee chain that was founded in San Francisco and has been operating for more than 20 years, is facing backlash for making the decision to remove pride flags from its cafes.
According to a petition that employees launched a few days ago, this “recent decision to remove pride flags from their stores has left many team members and customers feeling confounded and unsupported.”
“The pride flags within the stores hold deep meaning and value to both staff and visitors, symbolizing that these locations are safe and welcoming spaces for all individuals, regardless of sexual orientation or gender identity,” it continues.
But Philz CEO Mahesh Sadarangani says this measure will make the Bay Area-born cafe chain more welcoming to customers.
“Our longstanding support of the LGBTQIA+ community is unchanged,” Sadarangani said in an emailed statement to SFGATE. “We are working toward creating a more consistent, inclusive experience across all our stores, including removing a variety of flags and other decor. This is a change in how our stores look, not in who we are,” he continued, adding that the company plans to hold a pride event in June.
“Mahesh Sadarangani is making a really s—tty decision and it’s bound to backfire, I have no idea what he’s thinking,” a person who said they were an employee wrote on social media.
Originally founded in 2003 in San Francisco’s Mission District by Phil Jaber and his son, Jacob, Philz was originally known for its unique, made-to-brew coffees and homey atmosphere. In 2025, however, the company made headlines when private equity firm Freeman Spogli & Co. bought it for $145 million — and when dozens of employees who invested in the company early on lost their stock options as a result. Today, it operates over 60 locations throughout the state, with shops as far south as Orange County and the Inland Empire.
“Their new ‘consistent experience’ consistently sucks,” one person wrote on Reddit, describing the now-shuttered 24th street location as an eclectic hangout with thrifted couches and hand-painted murals. “New Philz has none of these things,” they continued. “It feels like a McDonalds.” Several other people said they stopped going to the chain following the acquisition or now plan to take their money elsewhere.
“We ask the leadership at Philz Coffee to reconsider their decision and reinstate the pride flags across all their locations,” the petition says. “In doing so, Philz will reaffirm its commitment to diversity and inclusion, aligning its values with the community it serves.”
Philz petition organizers and Freeman Spogli & Co. representatives did not respond to SFGATE’s requests for comment by the time of publication.