Philz Coffee fans and baristas needed an extra shot of espresso Friday morning to keep up with fast-moving events at the San Francisco-born coffee company.

Earlier in the day, CEO Mahesh Sadarangani suddenly reversed course on a plan to remove all Pride flags from the chain’s dozens of locations, after fierce backlash from employees, customers, and the broader LGBTQ+ community.

Related

Philz Coffee removes Pride flags from stores after private equity firm buys it

“Every Pride flag that is up stays up, and any Pride flag that was previously removed can be put back up,” the company said in a statement first reported by ABC7 News in San Francisco.

“I made a mistake, and I am sincerely sorry,” the CEO said.

“To our Team Members, to our customers, and to the LGBTQIA+ community that has been with us since the very beginning, the confusion and hurt we caused around our new policy for Pride flags failed you,” he said.

Never Miss a Beat

Subscribe to our newsletter to stay ahead of the latest LGBTQ+ political news and insights.
Subscribe to our Newsletter today

That rumored policy was confirmed on April 8 when Sadarangani sent a memo to staff outlining the company’s plans to remove Pride flags and other LGBTQ+ ephemera from all of its locations, following the company’s sale last August to a private equity firm.

The CEO’s explanation about stripping the stores of Pride flags and “other decor” to create “a more consistent, inclusive experience” was forced by publication of a Change.org petition from an unnamed group of Philz employees denouncing the new policy.

“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 petition read.

“Philz has made their branding and fortune off of supporting the LGBTQ community,” said one former barista in response. “This is a slap in the face to all of your employees.”

“Make this right!” they added.

It took a minute.

In a “confidential” memo to staff published Wednesday by the San Francisco Chronicle, Sadarangani doubled down on the Pride flag ban and announced plans for a new “unifying” piece of artwork to be placed in every store.

“Over the last year, we have been working on custom Philz artwork to set the expectations for a safe and inclusive space for all, including our LGBTQIA+ community,” the CEO tried to explain. “We want one piece of artwork that unifies all of Philz, that openly showcases our commitment to honoring the uniqueness and diversity of each person who enters our place.” 

The floated art was a lead balloon.

In the meantime, political pressure mounted.

Out state Sen. Scott Wiener (D) of San Francisco took to social media to denounce Philz leadership over the Pride flag ban.

“Now we have this private equity firm coming into San Francisco and trying to say that our Philz Coffee locations can’t have a Pride flag,” Wiener said in front of a San Francisco Philz. “That is really gross.”

Sadarangani went full retreat after meeting with Suzanne Ford, executive director of San Francisco Pride, and Jupiter Peraza, a member of San Francisco’s Trans Advisory Committee.

“Both are trans women who led this conversation with grace, directness and a genuine commitment to finding alignment on what matters,” Sadarangani said.

Philz published Sadarangani’s apology along with a statement from Ford, backing the CEO up.

“When Philz Coffee removed Pride flags from some of their locations, our community felt it. That kind of action sends a message, especially right now, when LGBTQIA+ people are navigating a climate that feels more threatening by the day,” she said.

Sadarangani now gets that, she said.

He showed “genuine humility” in their discussions, Ford added.

Philz Coffee was founded in San Francisco’s Mission District in 2003 by Phil Jaber and his son Jacob. They sold their last shares to private equity firm Freeman Spogli in 2025. The company has stores in 82 locations in California and Chicago. 

Subscribe to the LGBTQ Nation newsletter and be the first to know about the latest headlines shaping LGBTQ+ communities worldwide.