As the San Francisco Examiner first reported, Philz Coffee has closed its headquarters in San Francisco's Dogpatch neighborhood and moved to Oakland.

Both the headquarters and the café of the popular coffeehouse chain at 1258 Minnesota Street had to close as a result.

“With nearly our entire corporate team working entirely from home, the existing lease no longer met our needs as a company,” said Mahesh Sadarangani, CEO of Philz Coffee, in a statement provided to SFGATE. “As a result, we have decided to close the Dogpatch location and relocate our corporate headquarters to our roastery in Oakland, California.”

Qualified retail employees were offered jobs at other nearby Philz stores, Sadarangani's statement said. In October, Philz closed its original San Francisco cafe at the corner of 24th and Folsom after 20 years.

According to Mission Local, the company initially told employees that the 24th Street closure was because the company did not want to renew its lease. However, the building is owned by an LLC run by Philz co-founder Jacob Jaber, Mission Local reported. Employees told Mission Local they suspected other reasons for the closure, from high maintenance costs to the main store's reputation as a “rebellious store,” with employees having previously attempted to unionize, according to Mission Local.

The company still has about a dozen cafes across the city, from Embarcadero to Noe Valley to Ocean Avenue.

“We are thrilled to welcome Philz to its permanent home here in the city,” Oakland Mayor Sheng Thao said on X after news of the coffee chain's move broke. “It's not just about coffee; it's about community, and we're honored that a huge local favorite has chosen Oakland as its home.”

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Philz Coffee company has closed its longtime headquarters in San Francisco’s Dogpatch neighborhood and moved its offices across the bay to Oakland.

In a statement, the company’s chief executive, Mahesh Sadarangani, said the company’s needs had changed over time.

“Dogpatch has been our home for many years, housing our corporate offices and a retail location,” Sadarangani said. “However, with nearly all our corporate team fully remote, the existing lease no longer aligned with our needs as a company.

“As a result, we have decided to close the Dogpatch location and move our corporate headquarters to our roasting facility” in Oakland, he said.

“We are offering all eligible retail team members positions at other nearby Philz locations, and we look forward to continuing to be a part of the community and having a strong presence in the Bay Area.”

The move, which also closes a cafe at the headquarters’ former Minnesota Street address, comes months after the San Francisco-born coffee chain shuttered its original location on 24th Street in the Mission District.

The chain traces its roots to a convenience store run by Phil Jaber, who opened the first eponymously named Philz on New Year’s Day 2003. It quickly grew into a retail phenomenon, expanding across the Bay Area, into several Southern California counties and half a dozen locations in Chicago, according to the company’s website.

The company ended a six-year stint in Washington, D.C., in early 2023 due to “changing market conditions,” per Eater DC.

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OAKLAND, Calif. – A major Bay Area coffee company has closed its San Francisco headquarters and is headed for Oakland, according to a report.

The Philz Coffee campus in the Dog Patch neighborhood, located at 1258 Minnesota Street, has closed, according to San Francisco Examiner. The outlet reports the company CEO said the new headquarters will be at their East Bay roasting plant.

CEO Mahesh Sadarangani is quoted as saying the space no longer served the company’s needs due to remote work for corporate employees. The lease was not renewed and expired in December.

On X, the social media platform formerly known as Twitter, Oakland Mayor Sheng Thao said she was happy to welcome the coffee company to “The Town.”

“It’s not just about coffee; it’s about community, and we’re honored that a major local favorite has chosen Oakland as their home,” Mayor Thao’s post read.

The company was founded in 2003 and has since expanded to more than 60 coffee bars across California and the Chicago area.

Last fall, we reported on the homegrown staple’s closure of their original Mission District location.

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