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Philz Coffee will return Pride flags to cafés in reversal of policy that removed them

Philz Coffee will once again sport the Pride flag at its cafés after a policy directive to have it and other flags removed created a backlash.

Earlier this month, San Francisco-based Philz confirmed it would remove the rainbow flags from all its locations, with CEO Mahesh Sadarangani issuing a statement that while its support of the LGBTQ+ community was unchanged, "We are working toward creating a more consistent, inclusive experience across all our stores, including removing a variety of flags and other decor."

The company has most of its 82 cafés in the Bay Area, along with locales in the Sacramento area and Southern California, as well as in Chicago, the only city outside of California with Philz stores.

Philz workers, customers, and the LGBTQ+ community widely interpreted the Pride flag removal as a betrayal of the community, which Philz supported and built its brand around. Critics also noted the decision to remove Pride flags and other LGBTQ+ symbols from cafés came less than a year after the company's sale to a private equity firm. 

Philz Coffee Pride Flag
Interior of a Philz coffee shop featuring a Progress Pride flag above the counter in Emeryville, California, July 29, 2024. Smith Collection/Gado/Getty Images

An online petition to urge Philz to keep the Pride flags up was circulated and immediately tallied thousands of signatures. 

On Friday, the company issued a press release saying that following meetings between Sadarangani, Philz executives and San Francisco Pride leaders, Pride flags would stay up and any flags that were removed would be put back up.

"I made a mistake, and I am sincerely sorry," said Sadarangani in a prepared statement. "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." 

Sadarangani also said each of the company's stores would 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."

"When Philz Coffee removed Pride flags from some of their locations, our community felt it," said San Francisco Pride Executive Director Suzanne Ford in a statement. "That kind of action sends a message, especially right now, when LGBTQIA+ people are navigating a climate that feels more threatening by the day."

Ford added, "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."

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