Philz Coffee Criticized by Employees, LGBTQ+ Leaders Over Decision to Remove Pride Flags

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Philz Coffee, the San Francisco-based specialty chain, is removing Pride flags from all its stores.

It is unclear when the decision to remove the flags was first made. Last week, a Change.org petition began circulating on social media, urging Philz’s leaders to reconsider. 

The petition, signed by “Philz Coffee Baristas,” says that “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.”

However, the company’s CEO, Mahesh Sadarangani, doubled down on the decision. In an emailed statement to the San Francisco Chronicle, Sadarangani said Philz “was working toward creating a more consistent, inclusive experience across all our stores, including removing a variety of flags and other decor.”

As of April 8, Pride flags and other decorations were still on display at one San Francisco location. Employees at two other Philz stores told the Chronicle they hadn’t heard of the new rule. 

Philz has been a Bay Area institution since its founding in 2003 by Phil and Jacob Jaber. The brand grew to nearly 70 locations in California and Illinois on the back of significant venture capital investment. The Jabers stepped back from running the company in 2021, with Sadarangani taking over as CEO. In August 2025, Philz was acquired by the private equity firm Freeman Spogli & Co.

In his emailed statement, Sadarangani said that Philz’s “longstanding support of the LGBTQIA+ community is unchanged. This is a change in how our stores look, not in who we are.” 

In response to the news, members of the Oakland and San Francisco LGBTQ+ cultural districts wrote an open letter expressing their “extreme disappointment” with Philz. “When Philz came to our neighborhoods, it did so knowing it would be serving our communities,” the letter reads. “These recent actions, however, suggest that you do not prioritize us or the diversity of the LGBTQ community.”

Read the full story on the Pride flag removal from the San Francisco Chronicle here.  

Photo by Tong Su on Unsplash

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Fionn Pooler

Fionn Pooler is a coffee roaster and freelance writer currently based in the Scottish Highlands who has worked in the specialty coffee industry for over a decade. Since 2016 he has written the Pourover, a newsletter and blog that uses interviews and critical analysis to explore coffee’s place in the wider, changing world (and also yell at corporations).

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