Bay Area-based Philz Coffee reversing course, adding Pride flags back to all of its locations

SAN FRANCISCO (KGO) -- Philz Coffee is reversing course and adding Pride flags back to all of its locations, a little over a week after it decided it would pull them from stores to create "an inclusive experience."

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CEO Mahesh Sadarangani released a statement apologizing for the previous decision, which sparked a litany of backlash on social media. Many voiced their disappointment in the coffee company that started out as a single cafe in San Francisco's Mission District.

Sadarangani's statement in response to that backlash explains how they decided to bring the flags back to their stores:

"I made a mistake, and I am sincerely sorry. 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."

"The Pride flag is a symbol of safety and belonging for people who don't always find that in the world, and that is not something I want to take away from anyone who walks into a Philz. I had the chance to sit down with San Francisco Pride leaders Suzanne Ford and Jupiter Peraza, both are trans women who led this conversation with grace, directness and a genuine commitment to finding alignment on what matters. I want to be clear about where Philz stands: our Pride flags are staying up. If a Pride flag came down, it can be put back up."

"Going forward, each of the company's 82 stores, representing 82 unique communities, will also feature locally created artwork shaped by the voices of Team Members and the neighborhoods they serve, a living expression of the diverse communities Philz is proud to be part of."

SF Pride Executive Director Suzanne Ford released the following statement in response to Philz's announcement:

"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," said San Francisco Pride Executive Director Suzanne Ford. "What gave me reason to engage with Mahesh was something I don't always see from a CEO in this situation: genuine humility. He reached out, listened and understood that this wasn't about optics. It was about whether queer people, and the employees who show up for them every day, feel safe and seen. Mahesh sat with our community members, heard their perspective and apologized, not as a formality but as a person who got it wrong and wanted to make it right. That matters. San Francisco Pride's role is to sit down at the table and find a way forward that reflects our values. I believe Philz is committed to that path, and I look forward to seeing it in their continued actions and allyship."

Philz Coffee was bought by private equity firm Freeman Spogli in August 2025, according to KQED.

There are currently over 70 stores spread out across California and Chicago.