Philz Coffee CEO restores Pride flags in stores after intense backlash: ‘I made a mistake’

California-based Philz Coffee has reversed a controversial plan to remove Pride flags from its cafés, issuing a public apology after days of backlash from customers, employees, and LGBTQ+ advocates.

“Every Pride flag that is up stays up, and any Pride flag that was previously removed can be put back up,” the company said in a statement Friday. CEO Mahesh Sadarangani acknowledged the harm caused by the decision in a public apology.

“I made a mistake, and I am sincerely sorry,” Sadarangani said. “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.”

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He added that the Pride flag “is a symbol of safety and belonging for people who don’t always find that in the world."

San Francisco Pride Executive Director Suzanne Ford said she is encouraged by the move. “When Philz Coffee removed Pride flags from some of their locations, our community felt it. 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 said in a statement. “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."

She added, "I believe Philz is committed to that path, and I look forward to seeing it in their continued actions and allyship.”

The Human Rights Campaign also welcomed the policy reversal.

In a statement, HRC President Kelley Robinson celebrated the reversal as a direct result of public pressure.

“Philz Coffee tried to take down our flags and tamp down our pride — but we served a hot cup of reality,” Robinson said in a statement to The Advocate. “LGBTQ+ people are part of every community and in every zip code, and over 14,000 HRC members and supporters spoke up to make sure Philz’s leadership couldn’t ignore us.”

Robinson added that the outcome carries broader implications beyond a single company.

The controversy began earlier this month when Philz announced it would remove Pride flags and related displays from some stores. That quickly drew criticism from workers and customers who saw it as an attempt to sideline LGBTQ+ visibility. Baristas circulated a petition opposing the change, local advocates organized protests, including in San Francisco’s Castro district, and elected officials and national groups weighed in. In the days that followed, the company faced intensifying pressure online and in its stores before ultimately reversing course.

Among those efforts, the HRC said it mobilized more than 14,000 members and supporters to pressure the company to reverse course.

“This is a win not just for Philz’s customers but for their LGBTQ+ and allied employees, their shareholders, and the public at large,” Robinson said. “Our community spends over $1.4 trillion each year as consumers, and we’ll be watching who stands with us today, tomorrow, and always.”

Editor's note: This story has been updated with additional reporting.