Philz Coffee’s Castro location has become ground zero in what’s shaping up to be a major corporate culture clash. Earlier this week, the coffee chain’s CEO Mahesh Sadarangani announced plans to remove Pride flags and other localized decor from stores across the company in the name of creating a “more consistent, inclusive experience”. The problem? Pretty much everyone disagrees with that take.

Thousands of people have already signed a Change.org petition opposing the move, with some signers accusing the company of catering to MAGA politics. LGBTQ+ nonprofits that have partnered with Philz are reconsidering their ties, and the baristas, especially those at the Castro location, are basically saying they’re not going down without a fight. One employee even joked they’d wear a Pride flag dress if they had to.

This isn’t just about flags on walls. For many, it’s about what the company represents. About 90% of baristas at the Castro location identify as queer, and most said they chose to work there specifically because of its visible queer-friendly culture. “This store being in the Castro, there’s so much gay history in it. People come to this area to be seen and recognized and honored”, one barista explained.

What makes this move especially rough is the company’s recent history. Philz was acquired by private equity firm Freeman Spogli & Co. for $145 million less than a year ago. The shift has been noticeable, former employees reported the company’s culture changed almost immediately after the investment, with priorities shifting away from employee well-being and toward corporate bottom lines. Some longtime employees even lost tens of thousands of dollars they’d invested in the company.

The company says it’s already started removing flags at other locations too. At the Corte Madera store, management ordered employees to remove first-responder items and a Pride flag back in December. Mary Morrison, who worked there for over a decade, quit citing changes in work culture.

Sadarangani insists this is about decor, not values: “Our allyship runs deeper than what is on our walls”. But the Billy DeFrank LGBTQ+ Community Center in San Jose isn’t buying it. They’ve decided to cut ties with Philz over the decision, noting it’s part of a larger pattern of corporations abandoning symbols that matter to minority communities.

Philz has said its Unity fundraiser, which donates portions of specialty drink sales to LGBTQ+ nonprofits during Pride month, will return in June. But for many in the community, removing the flags while claiming to support LGBTQ+ causes feels hollow. The question now is whether corporate consistency will win out over community values, or if the pressure from baristas, customers, and nonprofits will force the company to reconsider.