{{short description|American coffee company and coffeehouse chain}} {{use mdy dates|date=November 2017}} {{Infobox company | name = Philz Coffee | logo = Philz coffee logo.png | image_caption = Original Philz storefront on 24th Street in the Mission District | industry = Coffee shop | founded = {{start date and age|2003}} | hq_location_city = San Francisco | area_served = United States | key_people = Mahesh Sadarangani, CEO | founders = Phil Jaber<br> Jacob Jaber | owner = Freeman Spogli & Co. | num_locations = 79 | num_employees = 1,445<ref name="MissionLocal-EmployeePayments" /> | num_employees_year = 2025 | products = Coffee, tea, mint mojito, hot chocolate, pastries | website = {{URL|philzcoffee.com}} }}
'''Philz Coffee''' is an American coffee company and coffeehouse chain based in San Francisco, California, which helped popularize third wave coffee.<ref>{{Cite news |url=https://www.reuters.com/article/us-intelligentsiacoffee-m-a-peets-idUSKCN0SO24220151030 |title=Peet's rides coffee's 'third wave' with stake in Intelligentsia |date=October 30, 2015 |access-date=October 31, 2015 |publisher=Reuters}}</ref>{{Dubious|date=July 2022}} Philz Coffee focuses on making pour over coffee. Philz Coffee has locations spread throughout the San Francisco Bay Area, greater Los Angeles, San Diego, Sacramento, and Chicago. Philz was founded by Phil Jaber and his son Jacob, both of whom are located in the San Francisco area.
In addition to coffee and drinks, Philz also sells merchandise and bagged coffee blends for purchase online.<ref>{{Cite web |url=https://www.philzcoffee.com/shop/coffee |title=Online Coffee Store - Darker, Medium, Lighter Blends {{!}} Philz Coffee |website=www.philzcoffee.com |access-date=2019-08-01}}</ref>
==History== Phil Jaber, born in Palestine,<ref name="SavorGood">{{cite news |last1=Hong |first1=Courtney |title=Phil Jaber: The man behind Philz Coffee |url=https://savorgood.com/2014/02/27/phil-jaber-philz-coffee/ |access-date=13 December 2021 |work=SAVOR GOOD |date=28 February 2014 |language=en}}</ref> and his son Jacob founded Philz Coffee in 2003. Phil operated a corner grocery in San Francisco's Mission District for over 25 years and had strong ties to the community.<ref>{{Cite magazine |last=Mac |first=Ryan |date=April 19, 2016 |title=Philz Coffee: Silicon Valley's Cup Of Choice |url=https://www.forbes.com/sites/ryanmac/2016/03/20/silicon-valleys-cup-of-choice/ |magazine=Forbes |access-date=October 14, 2016}}</ref> Phil's son, Jacob Jaber, later assumed the role of CEO and built the company from a single store to nearly 70 locations across the United States. In 2021, Jacob and Phil stepped away from the day to day operations of the company. <ref>{{Cite web |url=http://www.bizjournals.com/sanfrancisco/print-edition/2011/04/22/philz-grows-fast-with-slow-coffee.html?page=2 |title=Phil'z grows fast with 'slow' coffee |date=April 22, 2011 |website=San Francisco Business Times |access-date=September 25, 2014}}</ref>
Philz Coffee secured a round of funding in 2013 by Summit Partners<ref>{{Cite web |url=https://techcrunch.com/2013/05/01/philz-coffee-raises-eight-figure-round-from-summit-angels-as-specialty-coffee-market-heats-up/ |title=Philz Coffee Raises Eight-Figure Round From Summit, Angels, As Specialty Coffee Market Heats Up |date=May 1, 2013 |publisher=TechCrunch |access-date=September 25, 2014}}</ref> and a few private investors to expand into new markets, leading to the first Philz Coffee outside the Bay Area in Santa Monica California.<ref>{{Cite web |url=http://www.bizjournals.com/sanfrancisco/blog/2014/03/philz-brews-up-its-first-cafe-outside-thebay-area.html |title=Philz opens new location in Santa Monica |date=March 10, 2014 |website=San Francisco Business Times |access-date=January 2, 2020}}</ref> In February 2015 they secured a $15M Series B round to help them expand in the United States.<ref>{{Cite web |url=https://techcrunch.com/2015/02/18/philz-coffee-funding/ |title=Silicon Valley Favorite Philz Coffee Gulps Up $15 Million To Expand Nationwide |date=February 18, 2015 |publisher=TechCrunch |access-date=February 18, 2015}}</ref> In September 2016, they closed a $45M Series C round from San Francisco-based private equity firm TPG Growth to continue the expansion.<ref>{{Cite web |url=https://www.bizjournals.com/sanfrancisco/blog/2016/09/philz-coffee-vs-blue-bottle-tpg-capital-45m.html |title=San Francisco's Philz Coffee ready to take on Boston with $45 million funding jolt |date=September 15, 2016 |website=San Francisco Business Times |access-date=December 12, 2021}}</ref> In August 2025, Philz was acquired by private equity firm Freeman Spogli & Co. for $145 million.<ref name="SFStandard-Takeover">{{Cite web |last=D’Onfro |first=Jillian |date=2025-08-01 |title=Philz Coffee reportedly sells to private equity firm |url=https://sfstandard.com/2025/08/01/philz-coffee-sale-private-equity/ |access-date=2025-08-04 |website=San Francisco Standard}}</ref>
== Locations == thumb|Original Philz Coffee Location in San Francisco, CA From its origins in San Francisco, investor funding allowed Philz to expand its presence to include southern California, Chicago, and the District of Columbia, Maryland, and Virginia (DMV) area.<ref name="Eater-FilterOut">{{Cite web |last=Plumb |first=Tierney |date=2023-01-25 |title=Philz Coffee Filters Out of the D.C. Market |url=https://dc.eater.com/2023/1/25/23571216/philz-coffee-dc-market-closure |access-date=2024-08-12 |website=Eater DC |language=en}}</ref> However, in 2022, Philz began closing some of its retail locations. The first stores to close were located in the DMV area, and by the beginning of 2023 the company had exited the region, citing "business conditions".<ref name="Eater-FilterOut" /> As of August 2025, Philz Coffee has 79 locations, entirely in California and Chicago.<ref name="MissionLocal-EmployeePayments">{{cite news|last1=Blough|first1=Jessica|title=Philz Coffee baristas to get $525 as ‘thank you’ payments|date=2025-08-13|website=Mission Local |language=en-US|url=https://missionlocal.org/2025/08/philz-coffee-baristas-thank-you-payments/|access-date=2026-05-13}}</ref><ref>{{Cite web |title=Philz Coffee - Coffee Shops, Subscriptions, Customized Blends |url=https://philzcoffee.com/locations |access-date=2026-05-12 |website=philzcoffee.com |language=en}}</ref>
In October 2023, the company also closed its original location in the Mission District of San Francisco. The store lead, Chris Watts, stated that the closure followed a decision not to renew the location's lease.<ref>{{Cite web |date=2023-10-16 |title=Philz Coffee founder has message for customers on closure of their 1st San Francisco shop |url=https://abc7news.com/philz-closing-san-francisco-24th-folsom-street-original-coffee/13922865/ |access-date=2024-08-12 |website=ABC7 San Francisco |language=en}}</ref> However, the staff of the Mission location has stated that the building was in a state of disrepair and that the store needed to find a more modern location.<ref>{{Cite web |last=Bicchieri |first=Paolo |date=2023-08-09 |title=Turns Out Philz Coffee's Co-Founder Owns the Building Where the Company Won't Renew Its Lease |url=https://sf.eater.com/2023/8/9/23826259/philz-coffee-closing-building-lease |access-date=2024-08-12 |website=Eater SF |language=en}}</ref>
In January 2024, the company announced that it was moving its corporate headquarters to Oakland, CA from its original location in the Dogpatch neighborhood of San Francisco.<ref>{{Cite web |last=writer {{!}} |first=James Salazar {{!}} Examiner staff |date=2024-01-04 |title=Philz Coffee HQ is leaving The City |url=https://www.sfexaminer.com/news/business/philz-coffee-closes-san-francisco-offices-moves-to-oakland/article_75a754d8-ab4c-11ee-9c1f-c39dc38d2b96.html |access-date=2024-07-25 |website=San Francisco Examiner |language=en}}</ref>thumb|Philz Coffee Location in Cupertino, CA
== Products ==
=== Popular drinks === Philz Coffee’s menu is based around drip coffee, as they do not sell espresso. thumb|Iced Mint Mojito The most popular drink at Philz Coffee is the Iced Mint Mojito. It contains a blend of coffee and freshly pressed mint leaves. According to the company’s current CEO, Mahesh Sadarangani, the drink accounts for about 30% of their orders.<ref name=":0">{{Cite web |last=Lozada |first=Isabella |date=2024-03-29 |title=Philz "Pheatured" Creations: Diving Into Philz Coffee's Famous Drinks |url=https://spoonuniversity.com/reviews/philz-pheatured-creations-diving-into-philz-coffee-famous-drinks |website=Spoon University}}</ref>
Another popular drink is the Oatmeal Cookie Cold Brew, which was originally a "secret menu item".<ref>{{Cite web |title=Philz Coffee Introduces Oatmeal Cookie Cold Brew |url=https://vegoutmag.com/news/philz-coffee-oatmeal-cookie-cold-brew/ |access-date=2024-07-25 |website=VegOut |language=en-US}}</ref> Local guides describe the coffee as a mix of hazelnut coffee, cinnamon, and oat milk.<ref name=":0" />
Other popular drinks include the Iced Coffee Rose, which is a blend of coffee, rose water, and rose petals, and the Mocha Tesora, which contains a chocolate coffee, milk, and Ghiradelli cocoa powder.<ref>{{Cite web |last=Serra |first=Maria |date=2024-04-26 |title=7 Best Philz Coffee Orders For The California Newbie |url=https://spoonuniversity.com/lifestyle/best-philz-coffee-orders-philz-cold-brew |website=Spoon University}}</ref>
=== Cream and sugar levels === thumb|Philz Coffee Menu in San Francisco, CA Location Philz Coffee has their own system of sweetness and milk levels. A "sweet and creamy" coffee contains a normal amount of cream and sugar. A coffee "Philz’s way" contains reduced amounts of cream and sugar. Finally, a "straight up" coffee contains neither cream nor sugar.
Cream options include heavy cream, milk, almond milk, and oat milk. Sugar options include granulated sugar, artificial sweeteners, and honey.<ref>{{Cite web |last=Olives |first=Annika |title=A Guide to Ordering at Philz |url=https://ucsdguardian.org/2020/03/06/a-guide-to-ordering-at-philz/ |access-date=2024-07-25 |website=The UCSD Guardian}}</ref>
=== Merchandise === In addition to their drinks, Philz Coffee sells a variety of merchandise both in-store and online. Examples include tumblers, hats, shirts and sweatshirts.<ref>{{Cite web |title=Merchandise - Philz Coffee |url=https://philzcoffee.com/ |access-date=2024-08-12 |website=philzcoffee.com |language=en}}</ref> In addition, they sell both coffee grounds and Keurig pods of their most popular blends as well as Keurig pods for two of their most popular blends.<ref>{{Cite web |title=Coffee - Philz Coffee |url=https://philzcoffee.com/ |access-date=2024-08-12 |website=philzcoffee.com |language=en}}</ref> On their website, they also offer a subscription service for their coffee grounds.<ref>{{Cite web |title=Subscriptions - Landing - Philz Coffee |url=https://philzcoffee.com/ |access-date=2024-08-12 |website=philzcoffee.com |language=en}}</ref>
== Controversies ==
=== Pandemic layoffs === During the pandemic, multiple employees from various stores reported Philz to OSHA for workplace violations related to masks and social distancing. Following these reports, Philz Coffee laid off 181 employees across the country. Despite the company claiming that the reports and the layoffs were not related, many people online linked the two events.<ref>{{Cite web |last=Batey |first=Eve |date=2020-07-13 |title=Philz Coffee Lays Off 181 Workers After Weeks of Employee Protests |url=https://sf.eater.com/2020/7/13/21322704/philz-coffee-dominique-crenn-destino-nick-bovis-trouble-coffee |access-date=2024-08-12 |website=Eater SF |language=en}}</ref>
=== Police discount firings === Following the George Floyd murder, many employees began protesting Philz Coffee's 20% discount that they offer for law enforcement. This controversy began when a shift lead of the Mission district location posted a story to their social media that captioned, "What's your favorite iced coffee drink, because ours is Arrest the cops that killed Breonna Taylor." Following the incident, the shift lead was fired.
On top of protesting the 20% discount for law enforcement, employees also began protesting the placement of police badges on the stores community boards. Although the company allowed each store to decide whether they would allow the placement of these badges, stores reported that it was difficult for them to actually report to the company that they would not allow the placement of badges. In fact, three baristas in the Costa Mesa location (Southern California) tried to remove the badges from their store. As a result, they were all fired for damaging the store.
Many employees stated that the company's pro-police stance created a hostile environment for their black employees. In response to this controversy, the company launched a diversity, equity, and inclusion program.<ref>{{Cite web |last=Hom |first=Annika |date=2020-07-21 |title=Philz employees allegedly fired for disputing police policies |url=https://missionlocal.org/2020/07/philz-employees-allege-firing-for-police-policies/ |access-date=2024-07-25 |website=Mission Local |language=en-US}}</ref>
=== Palestine pins === At the end of 2023, five employees were sent home from the Gilman Street location for wearing Pro-Palestine pins. Despite asking for a written statement from management about why the pins were not allowed, the employees never received any information from management. The employees were sent home and the entire staff unionized.<ref>{{Cite web |date=2023-12-22 |title=Gilman St. Philz Coffee employees sent home for 'free Palestine' pins |url=https://www.dailycal.org/news/city/local-businesses/gilman-st-philz-coffee-employees-sent-home-for-free-palestine-pins/article_b1ca3008-a137-11ee-b023-67c1a731c576.html |access-date=2024-07-25 |website=www.dailycal.org |language=en}}</ref><ref>{{Cite web |title=How Palestine Led My Coworkers and Me to Unionize |url=https://jacobin.com/2024/06/gaza-philz-coffee-berkeley-union |access-date=2025-06-06 |website=jacobin.com |language=en-US}}</ref>
=== Gluten free class action lawsuit === In January 2024, a class action lawsuit was filed against the company for allegedly branding gluten containing products as gluten-free. The plaintiff, Ayaunna Martinez, suffered an allergy attack after consuming a supposedly gluten-free product from a Philz Coffee location. Although the Philz coffee app does state that they cannot guarantee that all products are free of allergens, the lawsuit is seeking that Philz Coffee change its false advertising of their products and pay the members of the lawsuit for damages.<ref>{{Cite web |last=Wells |first=Madeline |date=2024-01-24 |title=Class-action lawsuit alleges SF's Philz Coffee falsely advertised gluten-free products |url=https://www.sfgate.com/food/article/sf-philz-coffee-lawsuit-gluten-18628297.php |website=SFGate}}</ref>
=== Private equity takeover === In August 2025, private equity firm Freeman Spogli & Co. acquired Philz for $145 million. While CEO Mahesh Sadarangami received a payout from the deal, current and former employees who had invested in the company through its employee stock ownership and stock option programs saw their common stock canceled and rendered worthless.<ref name="SFStandard-Takeover" /><ref>{{cite news|last1=Kennedy|first1=Samantha|title=No Layoffs in Philz Coffee Sale, But Stock-Owning Former Employees Will Lose Out|date=2025-08-08|website=KQED|url=https://www.kqed.org/news/12051278/no-layoffs-in-philz-coffee-sale-but-stock-owning-former-employees-will-lose-out|access-date=2026-05-12}}</ref> Initially, Sadarangami had announced that he would be reinvesting part of his windfall into Philz; after local news coverage criticized the deal, he revised his position to reinvest all of his post-tax proceeds. The company subsequently offered current baristas bonuses of $525, with managers receiving larger amounts; the ten former employees affected received no consideration.<ref name="MissionLocal-EmployeePayments" />
=== Pride flag ban === In April 2026, Philz Coffee ordered the removal of all LGBT pride flags from its locations, with the stated reason by CEO Mahesh Sadarangan being to create "a more consistent, inclusive experience across all our stores". This was met with a change.org petition started by the chain's baristas, who said that, "Removing these flags risks alienating a core group of team members and loyal customers". The petition reached 4,000 signatures by April 10.<ref>{{Cite web |last=Duggan |first=Tara |date=2026-04-08 |title=Bay Area institution Philz Coffee to remove Pride flags from all cafés |url=https://www.sfchronicle.com/food/restaurants/article/philz-coffee-pride-flags-ban-22195803.php |access-date=2026-04-09 |website=San Francisco Chronicle |language=en}}</ref><ref>{{Cite news |last=Anguiano |first=Dani |date=2026-04-10 |title=California coffee chain faces backlash after pledge to remove Pride flags |url=https://www.theguardian.com/us-news/2026/apr/10/california-coffee-shops-pride-flags-philz |access-date=2026-04-11 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref> On April 17, Philz Coffee announced that the change was being scrapped and pride flags would be permitted to remain in stores.<ref>{{Cite news |last=Ede-Osifo |first=Uwa |date=2026-04-17 |title=California coffee chain reinstates policy on Pride flags after swift backlash |url=https://www.theguardian.com/us-news/2026/apr/17/philz-coffee-pride-flags-california |access-date=2026-04-18 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref>
==See also== {{portal|Coffee}} * List of coffeehouse chains
==References== {{Reflist}}
==External links== * {{official website|https://philzcoffee.com}}
Category:Coffee companies of the United States Category:Coffeehouses and cafés in the United States Category:2002 establishments in California Category:Mission District, San Francisco