A Philz Espresso location in Southern California. Every day Espresso Information photograph by Nick Brown.

San Francisco-born espresso chain Philz Espresso reversed its current directive to take away Satisfaction flags from its cafes, with CEO Mahesh Sadarangani apologizing for the coverage transfer. 

In a firm assertion issued April 17, Sadarangani mentioned, “I made a mistake, and I’m sincerely sorry. To our workforce members, to our clients, and to the LGBTQIA+ group that has been with us for the reason that very starting, the confusion and damage we precipitated round our new coverage for Satisfaction flags failed you.”

The assertion clarified that current delight flags can stay whereas these taken down may be put again up. It additionally mentioned that, going ahead, every of the corporate’s 82 shops will function “regionally created art work formed by the voices of workforce members and the neighborhoods they serve.”

The reversal adopted greater than every week of criticism after Philz confirmed on April 8 that it could take away Satisfaction flags from all places, with Sadarangani saying the preliminary determination was made to create “a extra constant, inclusive expertise.”

The San Francisco Chronicle reported that Sadarangani reaffirmed the choice in an April 10 inside memo that outlined a broader effort to take away flags and different decor in favor of extra uniform in-store appearances. 

The backlash was swift all through the Bay Space and past. An internet petition created by a bunch figuring out itself as Philz Espresso Baristas referred to as on the corporate to reinstate the flags, in the end drawing greater than 7,700 signatures.

Sadarangani mentioned he had met in particular person with San Francisco Satisfaction leaders Suzanne Ford and Jupiter Peraza earlier than retreating on the coverage change. Ford mentioned the CEO confirmed “real humility” and that he “sat with our group members, heard their perspective and apologized, not as a formality however as an individual who obtained it improper and wished to make it proper.”

Philz was acquired by Los Angeles-based personal fairness agency Freeman Spogli & Co. in a deal reportedly value $145 million in August 2025.

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