Philz Coffee baristas to get 525 as thank you payments

Philz Coffee will distribute $525 bonuses to its current baristas following its $145 million acquisition by private equity firm Freeman Spogli. The bonuses will not be awarded to 10 former employees who lost stock earnings due to the sale. CEO Mahesh Sadarangani highlighted that the bonus has been well-received, with many workers planning to use it for significant expenses like student loans. Despite this, some baristas voiced their dissatisfaction, stating they would prefer consistent raises instead of one-time payments. The company assured that there would be no layoffs or store closures as a result of the acquisition, maintaining historical pay and benefits practices.

Philz Coffee employs 1,445 individuals, including 987 baristas, leading to a total bonus payout of $518,175 for baristas alone. Sadarangani initially planned to take a payout from the acquisition but announced he would reinvest all proceeds back into the company. The specifics of additional bonuses for store managers and corporate employees remain undisclosed.