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Philz CEO orders removal of flags from stores, including pride flags, to create an ‘inclusive experience’

Once a local gem, the private equity-owned coffee chain has pissed off staff and patrons with its anti-LGBTQ request 

The “queerest coffee shop in town” may soon have to pull down its pride flag. Photo: Olivia Peluso / Gazetteer SF

Philz Coffee CEO Mahesh Sadarangani has ordered that Pride flags must be removed from all of the chain’s stores, employees said Wednesday. 

The move came as a surprise to employees and patrons alike, who say the flags are an intrinsic part of not just Philz, but of any customer-facing business looking to foster decent vibes in a queer-friendly city. Baristas at the Castro location were especially surprised: Gazetteer’s inquiry broke the news to them on Wednesday. 

“Do they know who works for them?” one employee asked. Behind them, a massive rainbow pride flag, plus a chalkboard that says “The queerest coffee shop in town,” were still displayed. The Castro employees figured there was no way corporate could make their location shed their pride. (The employees spoke anonymously because they were not authorized to talk to a reporter about the chain.)

A group of anonymous Philz employees have launched a petition on Change.org to keep pride flags flying. 

“Removing these flags risks alienating a core group of team members and loyal customers who see Philz not just as a coffee shop, but as a place where they are embraced and celebrated for who they are,” the petition states. 

It had garnered more than 1,500 signatures by Wednesday afternoon. (Gazetteer did not hear back from the petition's organizers in time for publication.) 

As the baristas and I discussed the new rule, some customers chimed in, having seen the petition on Reddit. One customer who was wearing a pride shirt wondered whether, given the lack of knowledge on the matter among Philz employees, if the petition was created by a competitor coffee chain trying to sabotage Philz’s reputation. 

However, Sadarangani confirmed the move in a statement emailed to Gazetteer, writing that the company was imposing a rule against all kinds of flags. 

“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,” Sadarangani said in the statement. 

Philz, which was founded in San Francisco in the ‘90s, was sold to Los Angeles-based private equity firm Freeman Spogli for $145 million in August of last year. Its original location on 24th Street in the Mission was known for its funky interior, with cloud-painted, poster-laden walls, graffiti, and pride flags galore. 

The private equity takeover expedited what many have referred to as the Starbucks-ification of the once-neighborly chain. For what it’s worth, Starbucks also cracked down on flags in 2023

When the rule will take effect, and to what extent, remains unclear. Employees were confused on what enforcement could look like and how seriously they ought to take the request, especially with San Francisco Pride a few months away.

The news has already spurred backlash online. “Do these mf'ers even know who their demographic is?” one person commented on Reddit. “If they cave and keep the flags they'll still be anti-queer, so why should we keep giving them money?”

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