Another Bay Area darling bites the dust, and this time it’s our beloved Philz Coffee. The homegrown coffee chain that made customized pour-overs an art form is being sold to a private equity firm for a cool $145 million, effectively turning employee stock into digital confetti.

From Mission District Bodega to Coffee Empire

Phil Jaber, a Palestinian immigrant with a dream, started slinging coffee from a tiny bodega at 24th and Folsom streets in 2003. What began as a side hustle quickly transformed into a Bay Area phenomenon, with Philz becoming known for wild flavor combinations like mint mojito and gingersnap coffee that had techies and hipsters lining up around the block.

The Rise and Fall of a Coffee Darling

At its peak, Philz boasted over 40 locations across California, Chicago, and Washington D.C. But the caffeine-fueled expansion couldn’t last forever. By 2021, the Jaber family stepped away, and the company began a slow descent, closing its D.C. locations and original Mission spot.

The Capitalist Takedown

Now, L.A.-based Freeman Spogli & Co. is swooping in to purchase the brand, leaving current and former employees with potentially worthless stock. It’s a Silicon Valley tale as old as time: local passion project gets gobbled up by corporate interests, turning dreams into dollar signs. Another local legend bites the dust, proving once again that in tech and coffee, nothing gold can stay.