Is Philz Coffee Publicly Traded?

Is Philz Coffee Publicly Traded? Based in San Francisco, Philz Coffee is a major player among third wave coffees – high-quality coffees emerging in the marketplace after 2000, which are considered artisanal beverages. The drip coffee company currently has 65 locations in:

  • San Francisco (which includes a mobile store)
  • Los Angeles
  • Sacramento
  • San Diego
  • Maryland, 
  • Arlington, VA
  • Chicago (representing the most recent location openings)

Established by Phil Jaber in San Francisco in 2003, Philz Coffee features a wide range of coffees, beverages, and merchandise. The founder previously operated a corner grocery in the Mission District of San Francisco where he had a strong connection to the neighborhood.

He experimented with making the perfect blend from the time he opened his store in 1978 to its founding in 2003. In 2005, his son, Jacob became CEO, and has helped to expand the coffee company locally and in the U.S.

Can I Buy Philz Coffee Stock?

No, you cannot buy Philz Coffee stock as it is not publicly traded.

Philz is a venture-capital (VC) backed company which has a pre-initial private offering (IPO) status. To invest in Philz, you need to be a venture capitalist or growth equity investor.

Or to buy the stock, you need to access a fund that provides buys for pre-IPO companies or be a limited partner of a venture capital firm. In short, you cannot buy Philz on the public stock exchanges.

According to crunchbase, Philz is a San Francisco based company that has Series C funding. The company is working toward a funding amount of $75M. Currently, 33 investors support funding of the business.

Two Fans of Philz Coffee

According to Eater San Francisco, Snoop Dogg was one of several investors to contribute to the company’s $15 million second B round stock fundraiser for venture capital in February 2015. Philz Coffee made the move to expand the business worldwide. 

Snoop likes the coffee company’s use of organic ingredients and methods for brewing. He is a fan of the coffee company, as is Mark Zuckerberg of Facebook (FB), who has set up a Philz store on Facebook’s campus.

What Makes Philz Coffee Different?

While not as profitable as Starbucks (SBUX), Philz Coffee is still an alternative coffee to consider in a market where Starbucks is a major contender.

Philz’s reach does not extend as far as Starbucks, as it represents a chain with a niche group of coffee drinkers. Philz offers coffee connoisseurs something different than Dunkin’ Donuts and Starbucks. The full-service coffee bar is best known for its single-origin brews and line of customized blends.

Philz does not offer franchising but prefers to open retail chains instead. Phenomenally successful Starbucks also does not feature franchising, although 40% of the chain’s stores are licensed.

By taking this approach, a company enjoys stronger control, but offers investors a chance to use a company’s trademark for profit. Companies often use licensing for co-branding purposes.

Responsible Sourcing

Philz has made it its mission to practice responsible sourcing of coffee beans. The company is part of the Sustainable Coffee Challenge, part of a worldwide initiative to make coffee sustainable.

It has also taken part in the Checkoff Program since 2015. Part of the World Coffee Research organization, the program supports studies on the coffee plant and investigates favorable growing conditions.

How Much is a Cup of Philz Coffee?

Philz sells coffee for $18.00 per bag and about $3.50 per cup. The high-quality coffee commands a higher price, as it is considered artisanal, much like a fine wine.

The company does not sell lattes but specializes in single-up pour-over coffee drinks.

Is Philz Coffee a Publicly Traded Company?

Philz Coffee has not yet gone public but remains in the pre-IPO phase, backed by venture capital stock.

The company is backed at the Series C stage by private investors.

Why Is Philz Coffee So Good?

The founder of Philz Coffee practiced for 25 years, experimenting with different coffee blends before founding the company in 2003. Therefore, a lot of preparation and work has gone into creating Philz Coffee products.

Phil Jaber took great pains to learn how to make the perfect cup of coffee over the 25 years he ran his grocery. For example, Philz Tesora blend represents the quintessential Philz blend of coffee. It took Phil Jaber 7 years to hone the blend and perfect it.

Philz Tips for Making the Perfect Home Brew

To make a perfect Philz brew at home, the company’s brew guide offers the following tips:

  • The coarseness or fineness of a grind affects the taste of the coffee. Shorter brew times require a finer grind while longer brew times must use a coarser grind. 
  • Coffee brewers need to adjust a stronger coffee with a coarser grind and a weaker coffee with a finer grind. 
  • Consistency is important to extract a good flavor. A burr grinder offers the best consistency.
  • Philz will grind its beans for you, whether you buy the bean in-store or online.
  • Use fresh and odorless water, preferably filtered and not distilled. to get the best flavor.
  • Philz Coffee tastes the best when brewed within 2 weeks of the stamped roast date on the package. Coffee drinkers should take no longer than 15 minutes to grind the beans.
  • The temperature should not be higher than 200 degrees Fahrenheit when brewing the coffee. If you don’t have a thermometer handy, bring the water to a boil and let it stand 5 seconds before pouring.
  • Don’t use soap when caring for equipment.

While Philz stores do not offer Expresso, it is featured in the company’s brewing guide. Below are the suggested blends for specific brewing techniques.

  • Espresso (recommended Philz blends – Philharmonic, Julie’s Ultimate)
  • French Press (suggested Philz blends – Julie’s Ultimate and Tantalizing Turkish)
  • Auto Drip (for popular blends, such as Ether and Silken Splendor)

The Pour Over Method – Used in Philz Coffee Stores

The guide also elaborates on the pour over method. This method requires that the maker use 2 tablespoons of Philz Coffee, 6 oz. of water and a brewing time of 4 to 6 minutes in a gooseneck spout kettle. This simple brew is like the clean and basic coffee offered at the Philz stores.

Does Philz Have a Secret Menu?

According to the Patch, Philz does have a secret menu. Some of the items include Oatmeal Cookie and Cinnamon Toast Crunch.

In addition to the secret menu, you can also buy coffee either Philz Way or Jacob’s Way. Philz Way is a coffee with medium cream and medium sugar while Jacob’s Way is a coffee made with medium honey and medium cream.

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