Philz to leave Pride flags up, after all

Following weeks of expressions of public ire, the popular coffee shop chain Philz, it seems, will keep its rainbow flags after all.

Earlier this month, San Francisco-rooted national coffee chain Philz announced that it would no longer be permitted at its more-than-70 locations to create a more “welcome and safe” environment. Then, facing public pushback, it doubled down on the decision. Today, it appears that the company has reversed course and the flags will stay.

In a statement first published by ABC7 today, Philz CEO Mahesh Sadarangani says, “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,” the executive continues. The decision comes after his meeting with San Francisco Pride leaders Suzanne Ford and Jupiter Peraza, who are trans women, he says.

“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,” he adds.

Additionally, the cafe chain plans to feature locally created art driven by staff members and the neighborhoods the cafes are located in as “a living expression of the diverse communities Philz is proud to be part of,” according to Sadarangani.

After the April 8 announcement by the coffee chain that its Pride flags would be coming down, public pushback was quick and forceful, especially locally. Oakland's Lakeshore LGBTQ Cultural District and San Francisco's Castro LGBTQ Cultural District went online to decry the actions of Philz Coffee, which was founded in San Francisco.

"When Philz came to our neighborhoods, it did so knowing it would be serving our communities. These recent actions, however, suggest that you do not prioritize us or the diversity of the LGBTQ community," read the joint statement on Instagram, addressed to Philz CEO Mahesh Sadarangani.

The original Philz started off locally in 2003. "Founded by Phil Jaber in San Francisco's vibrant Mission District, Philz has always had one goal in mind: to better the days of everyone who walked in," states the company website. In 2025, it was sold to the same private-equity firm that owns Popeyes Chicken.

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This story was originally published April 17, 2026 at 10:55 AM.