SAN FRANCISCO (KGO) — A new policy by Bay Area-based Philz Coffee has some people upset as the chain says it will no longer allow flags of any kind in its stores, including Pride flags.
What started out as a single cafe in the city’s Mission District has since become a quintessential part of the San Francisco coffee scene. But after over two decades of building a solid customer base around the Bay Area, Philz Coffee is now disappointing many.
“I think it’s very sad. I think it’s a very sad decision,” said Barry Zeve.
On Wednesday, the company confirmed it will remove Pride flags from all of its locations nationwide.
Their CEO said in a statement:
“At Philz, we have always believed everyone who walks through our doors deserves to feel welcome and safe, and that belief is at the core of everything we do…This is a change in how our stores look, not in who we are.”
MORE: Philz Coffee founder has message for customers on closure of their 1st San Francisco shop
Philz Coffee says it’s removing not just Pride flags, but also other flags and decor at its stores as well.
The company also says that it stands behind it’s long support for the LGBTQ+ community.
Rumors of the change have been circulating online for days.
Employees at the Castro District location told 7 Eyewitness News they heard about the changes from customers.
MORE: Ranger fired for hanging transgender flag in Yosemite, park visitors may face prosecution
Ann Harrison is a professor and former dean of the Haas School of Business at UC Berkeley.
She says Philz might have made the decision for a variety of reasons. But she cautions the move could alienate some customers for good.
“What’s the experience that Philz Coffee is selling? What is it that makes them distinctive? And the focus on the flags, the focus on Pride, that really has been an important part of what Philz Coffee is all about,” said Harrison.
At this time, it’s unclear when the flags will actually come down. But when they do, many customers fear the coffee shops just won’t feel the same.
“I think it’s pretty rotten, you know, if it’s owned by big money at the top, I can’t say that I’m surprised,” said Todd Varney.
Philz Coffee operates over 60 locations around California and Chicago.
© 2026 KGO-TV. All Rights Reserved.











