Philz Coffee, the cult-favorite San Francisco café chain known for its customized brews and loyal tech industry following, is being sold to private equity firm Freeman Spogli & Co. for a reported $145 million. The deal, expected to close on August 8, will leave common stock held by employees “effectively worthless,” according to local reports.
Founded in 2003 by Palestinian immigrant Phil Jaber out of a Mission District bodega, Philz expanded rapidly under his son Jacob’s leadership, attracting $75 million in venture capital from investors like Snoop Dogg and private equity firm TPG. At its height, the chain operated 40+ locations across California, Chicago, and Washington, D.C., and counted tech giants like Google and Facebook among its fans.
However, growth slowed in recent years. The Jabers stepped away in 2021, and the company closed its SF headquarters in 2024 after a string of store closures. The pending sale has sparked backlash from former employees, some of whom spent thousands to buy stock now rendered valueless in the deal. Philz has not commented publicly on the acquisition.
Source: The San Francisco Standard
