Philz Coffee Acquired by Private Equity Firm Freeman Spogli to Support Expansion

Philz Coffee has announced its acquisition by private equity firm Freeman Spogli, with completion expected by August 6. The popular coffee chain, consisting of 77 locations, will continue its operations under the leadership of CEO Mahesh Sadarangani, who joined the company in 2021. While specific financial terms were not disclosed, reports suggest the deal valued the company at approximately $145 million. Freeman Spogli has a history of investing in restaurant brands such as El Pollo Loco, Popeyes, and First Watch, making it a fitting partner for Philz's expansion plans. The company emphasized that this transition will not impact current staff benefits, compensation, or employment conditions, and a thank-you bonus will be awarded to all team members across stores, roasting facilities, and offices. However, some former employees may lose the value of stock purchased in previous years. Philz also assured customers and employees that no store closures are planned, and several new locations are scheduled to open within the next two years. The restaurant industry has experienced significant M&A activity in 2025, despite economic challenges such as declining same-store sales, slugg...