Trending Now - Philz Coffee Faces Backlash Over Pride Flag Policy Change

WHO:

Inc - Philz Coffee, a California coffee chain, operates about 75 locations nationwide.

Chicago Sun-Times - Mahesh Sadarangani, CEO of Philz Coffee since 2021.

Chicago Sun-Times - Employees and customers of Philz Coffee, including two unnamed employees who spoke to the Sun-Times.

WHAT:

Chicago Sun-Times - A petition by a Philz Coffee Baristas group reached over 4,500 signatures as of April 7th, 2026, and continued to grow, indicating ongoing employee and customer dissatisfaction.

Chicago Sun-Times - Sadarangani stated in a letter, “Our longstanding support of the LGBTQIA+ community is unchanged,” emphasizing that the changes in decor do not reflect a change in the company's values.

Chicago Sun-Times - The letter from Sadarangani acknowledged that “some of our team members have shared that those changes felt personal,” indicating the emotional impact of the decision on employees.

Inc - Philz Coffee announced it would remove Pride flags and other decor from all its stores.

Chicago Sun-Times - The decision has sparked outrage from employees and customers.

Chicago Sun-Times - A petition by a Philz Coffee Baristas group reached over 4,500 signatures as of April 7th, 2026.

Chicago Sun-Times - Philz Coffee will continue to sell a “Unity Collection” of merchandise and coffee to support queer organizations.

WHERE:

Inc - Philz Coffee has 75 locations nationwide, most of which are in California, with six in the Chicago area: Lincoln Park, Old Town, River North, Wicker Park, Hyde Park, and Evanston.

Chicago Sun-Times - A location in San Francisco displays a sign reading: “Welcome to the Queerest coffee shop in town. Period.”

WHEN:

Chicago Sun-Times - The confidential letter from CEO Mahesh Sadarangani was sent to employees on April 7th, 2026.

Chicago Sun-Times - Philz Coffee was acquired by private equity firm Freeman Spogli in 2025.

WHY:

Chicago Sun-Times - The decision to remove Pride flags was made to create a “more consistent, inclusive experience” across all stores.

Chicago Sun-Times - Sadarangani stated that the company wants to make everyone feel “welcome and safe.”

HOW:

Chicago Sun-Times - Employees were reportedly told that if managers did not take down the flags immediately, their jobs would be at stake, reflecting pressure on staff regarding the decor changes.

Chicago Sun-Times - Employees were urged not to speak on the matter when asked about the removal of the flags.

Chicago Sun-Times - Sadarangani acknowledged that the changes to store decor were not handled well and took responsibility for the communication regarding the changes.

(UPDATED April 12, 2026 04:00 UTC)

A petition by a group of Philz Coffee baristas has gathered over 4,500 signatures as of on Tuesday, highlighting ongoing dissatisfaction among employees and customers. In a letter, Sadarangani reassured that the company's support for the LGBTQIA+ community remains unchanged, while acknowledging that the recent decor changes have felt personal to some team members. Reports indicate that employees were pressured to remove flags immediately, with threats to their job security if managers did not comply.

--

(UPDATED April 11, 2026 21:06 UTC)

Philz Coffee, a California-based chain with around 75 locations nationwide, announced it will remove Pride flags and other decor from its stores, a decision that has sparked significant outrage among employees and customers. CEO Mahesh Sadarangani, who has led the company since 2021, sent a confidential letter to staff on Tuesday, stating the move aims to create a "more consistent, inclusive experience" while still offering a “Unity Collection” of merchandise to support queer organizations. As of on Tuesday, a petition from a group of Philz Coffee baristas opposing the decor changes has garnered over 4,500 signatures, highlighting the strong feelings surrounding this decision.