Philz Coffee removing Pride flags from stores sparks backlash

A beloved coffee chain founded in San Francisco is removing Pride flags and other flag décor from its stores, the company announced Wednesday.

“[Philz’s] longstanding support of the LGBTQIA+ community is unchanged,” Mahesh Sadarangani, who took over as CEO from the founders in 2021, said in a statement. “This is a change in how our stores look, not in who we are. Our allyship runs deeper than what is on our walls. It shows up in who we hire, how we treat one another, and in our annual Pride Month Unity celebration, which returns this June as it has every year. Unity is fundamental to how we operate.”

The change became public after a Change.org petition — which has garnered more than 2,300 signatures — demanded the policy be reversed and urged Philz to “proudly display the Pride flags once again,” the San Francisco Chronicle reported.

“Philz Coffee’s recent decision to remove Pride flags from their stores has left many team members and customers feeling confounded and unsupported,” the petition states. “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.”

The coffee chain, with more than 60 locations primarily concentrated in California and additional shops in Chicago and other areas, has built a strong following.

The San Francisco-based company, known for its customized blends and pour-over method, was founded in 2003 by Phil Jaber and his son, Jacob Jaber, in the city’s Mission District. The first location opened at 24th and Folsom streets after Phil converted his corner grocery store into a dedicated coffee shop.

Philz Coffee was acquired last year by private equity firm Freeman Spogli & Co. in a deal reportedly valued at $145 million, according to a San Francisco newspaper, though financial details were not publicly disclosed. The firm also owns chains including Popeyes and El Pollo Loco.

This is not the first time the company has come under scrutiny under Sadarangani’s leadership.

In 2023, during the Israel-Gaza war, some employees were reportedly sent home for wearing “Free Palestine” pins, an incident that contributed to a broader unionization push. Notably, the Jabers, who previously owned the chain, are Palestinian Americans. Following the sale, the company said about 10 former employees who had invested in stock lost the value of their holdings, while current employees at the time of the acquisition received $525 bonuses.

The removal of the rainbow Pride flag — a symbol of LGBTQ+ diversity — marks the company’s latest controversial move.

“[Philz] was working toward creating a more consistent, inclusive experience across all our stores, including removing a variety of flags and other décor,” Sadarangani said.

The company has not made clear when the flags will be taken down. The California Post has reached out to Philz for further comment, as well as the organizers of the petition.

Meanwhile, Reddit users have made their opposition clear. Some also took to commenting on the petition, urging others to sign.

“I’ve been a regular customer for over a decade. I’m saddened to see this new, out-of-town Texan CEO steamrolling over the values of our local communities in the Bay Area,” one testimonial, written by a user named Franco, read. “Doesn’t seem like good business sense to swoop in and alienate your workers and longtime customers by making politically motivated changes.”

Others said the company should make people feel welcome even if they disagree with them.

“I think we should let people feel welcomed in our communities even if we have personal difficulties or differences with them sometimes,” one user wrote.

One employee noted that many, if not most, employees at Philz are part of the LGBTQ+ community.

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