Philz Coffee reportedly nearing a $145M PE acquisition. Just another "only in SF" story. Where your barista’s startup dream comes true, and the morning pour exits before your Series B.
> Dalla worked at Philz for nine years until last year, when he was laid off. He said that many longtime employees left around the same time as the company’s culture shifted to a more profit-driven, corporate culture.
> On his way out, he said that CEO Sadarangani urged him against exercising his stock options — options that will now, barring changes to the current deal, be worth nothing. “I always assumed they would do the right thing,” Dalla said.
Wouldn't the options also be worth nothing now? So by not exercising them at least the exercise money was spared?
That sucks. It sucks that employees’s common stock will be cancelled. It also sucks that the vitality of the company will be drained. Maybe this was its destiny.
With investments they were able to furnish nice locations pretty well. Better than many normal franchises.
But perhaps that was overshooting and they will be brought back to financial reality by the PE firm —they’ll try to make it turn a profit at the expense of employees and customers but then again maybe it was existing on borrowed time (money).
At least, so far, it’s a slightly better story than the ice cream shop that grew too fast and then had a complete meltdown from the financial burden.
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[ 4.2 ms ] story [ 45.2 ms ] threadHow is this even legal?
> On his way out, he said that CEO Sadarangani urged him against exercising his stock options — options that will now, barring changes to the current deal, be worth nothing. “I always assumed they would do the right thing,” Dalla said.
Wouldn't the options also be worth nothing now? So by not exercising them at least the exercise money was spared?
With investments they were able to furnish nice locations pretty well. Better than many normal franchises.
But perhaps that was overshooting and they will be brought back to financial reality by the PE firm —they’ll try to make it turn a profit at the expense of employees and customers but then again maybe it was existing on borrowed time (money).
At least, so far, it’s a slightly better story than the ice cream shop that grew too fast and then had a complete meltdown from the financial burden.
I'm curious about this, as it sets off a little alarm in my head. Is this a legal thing for the CEO to do?
For other Tesora addicts, the house brand Italian roast at Safeway/Von's is very similar and a lot cheaper.
I can't imagine what changes are coming. Probably Son of Philz AItalian Roast.
It was fun and flavorful.