Philz Coffee Brews Growth With New Partner

Growth is brewing at Philz Coffee.

The Oakland, Calif.-based brand has joined private equity firm Freeman Spogli to help expand its footprint and improve its offerings. Terms of the acquisition, expected to close August 6, weren’t disclosed.

Philz’s CEO Mahesh Sadarangani and the existing leadership team will continue to steer the brand.

“This is an exciting new chapter for Philz as we expand and continue our mission to deliver a high-quality, personalized coffee experience to our loyal customers,” says Sadarangani, who joined Philz in 2021, in the release.

Freeman Spogli has helped support and scale brands such as El Pollo Loco, First Watch and Popeyes Chicken.

“Philz is a beloved brand with a passionate customer base, distinctive, handcrafted coffee offerings, and significant room for expansion,” says Brad Brutocao, partner at Freeman Spogli.

Philz has 77 cafes across California and Chicago. It also sells its coffee in select grocery stores and online. A local roasting facility in Oakland supplies all its stores and products.