When senior Archana Kakar heard that Philz Coffee had removed Pride flags from stores, her reaction was immediate.

“I initially really did not want to keep going,” Kakar said. “I’ve always believed that you don’t just vote with ballots. You vote with dollars as well, and I don’t like giving my money to places that I don’t agree with.” 

For Kakar, who visits Philz roughly every one to two weeks, the decision felt jarring given the company’s public image over the years as a sustainable and socially conscious brand. 

“Philz has always marketed itself as a really inclusive place for everyone,” Kakar said. “To think that they went back on that so easily just hurt.”

The controversy began earlier this month, when Philz Coffee removed pride flags that employees had chosen to display in certain stores. CEO Mahesh Sadaragani said in a public statement that the move was intended to create a “more consistent, inclusive experience” across all locations.

Philz, founded in San Francisco in 2003, built much of its reputation around creating a community focused on the culture of coffee. In 2021, founder Phil Jaber stepped away from leadership, and Sadaragani became CEO. In August 2025, private equity firm Freeman Spogli acquired the company while retaining the existing leadership team. 

For MVHS library media specialist Maria Pangelina, who frequents Philz several times a week during the summer, the company’s explanation contradicted the atmosphere she had long associated with the brand. Pangelina believes that these decisions should be made by the workers at each respective store, rather than corporate leaders.

“They’re the ones that are working one-on-one with their customers every day,” Pangelina said. “They’re the ones building the community and setting the vibe for the place, so most of the responsibility and option to put things out there should come from the employees, because they’re the ones on the front lines daily.”

After backlash from employees and customers, including a Change.org petition that drew thousands of signatures urging the company to reverse course, Philz reconsidered its stance. CEO Mahesh Sadaragani later said that the decision to put the flags back up came after a meeting with San Francisco Pride Executive Director Suzanne Ford and Jupiter Peraza, a member of San Francisco’s Trans Advisory Committee. In the same public statement, Sadaragani apologized, referring to the original decision as “a mistake,” and announced that every Pride flag that is up stays up, and any Pride flag previously removed can be put back up. The rapid reversal, however, did not erase questions from some customers about what prompted the initial decision. 

“It just felt really weird for it to come back so easily,” Kakar said. “I obviously want them to be an inclusive place, but I didn’t understand why it was taken down just to be put back up. Why would they take it down in the first place if it was so easy for them to put it back up?” 

Even after the change, both Archana and Pangelina remained skeptical of the company’s motivations. Pangelina likens this situation to Target’s pride merch controversy: after the 2023 pride merch collection drew right-wing backlash that negatively impacted sales, the company limited the 2024 pride merch collection to select stores, yet claimed to stand firmly in solidarity with the LGBTQ+ community.

“They’re trying to be politically correct,” Pangelina said. “They did it because they got caught, and they’re trying to backpedal so that repercussions don’t take them down, rather than just putting them back up and saying, ‘This was a really bad decision on our part, and that’s what we stand for.’ It’s really disappointing.” 

BASIS Independent School student and Philz Coffee customer Vienna Li says that although she noticed the change at the Cupertino location both when the flags were taken down and when they were hung back up, she did not consider it a major issue. To her, the explanation for the takedown and the subsequent petitions to reinstate the flags were justified in their own right.

“I thought it was a bit odd, but considering it’s not Pride Month, I hadn’t thought too much about the constant need to acknowledge or accept LGBTQ+ community members,” Li said. “It’s more of a public space, kind of like a park.” 

Ultimately, Li believes that the company’s decision to reinstate the flags deserves the most weight, and the controversy has not changed her opinion of the company or how much she wants to buy from it. However, Pangelina says the controversy has permanently damaged her opinion of Philz Coffee as a company. 

“They can try to work to make things better, but I think their true stance really showed in that major decision to pull those flags,” Pangelina said. “If they really were against taking the flags down, it wouldn’t even have been an option on the table for them to not only consider it, but then move forward with it. I don’t think there’s anything that could make me think they’re genuinely sorry. I think they did it to save face.”

Kakar agrees with this sentiment, saying that although she plans to continue buying from Philz, the recent controversy negatively impacts her view of the company and its culture. She emphasizes that consistent messaging, especially when trying to portray the company as inclusive, is essential to maintaining consumer trust. 

“Always make sure that your company reflects your true values,” Kakar said. “Inclusivity is not something to be afraid of. It’s something to be embraced, and pride stands for that.”