Philz Coffee announced a $525 'thank you' bonus for current baristas after selling to a private equity firm for $145 million, although former employees lost stock earnings. The bonus, backed by Freeman Spogli, will not benefit the ten former employees affected by stock cancellations. CEO Mahesh Sadarangani noted the bonuses were well-received, with workers planning to use them for various expenses. The company will also compensate store managers and corporate employees differently, though details were not provided. Many baristas preferred higher wages than smaller bonuses.
CEO Mahesh Sadarangani stated, "I personally visited nearly 40 percent of our stores since the acquisition was announced and the thank you bonus of $525 for each barista was well received and appreciated by all of our team members." Baristas expressed intentions to use the bonus for various financial commitments, showcasing its impact on their personal lives. Sadarangani will reportedly reinvest profits from the sale back into Philz, indicating a commitment to the company's future.
The current baristas will receive a $525 pre-tax bonus, while store managers will receive a larger amount. However, former employees impacted by the stock cancellation will not benefit from this bonus, emphasizing a disparity among workers.
Employees voiced a preference for substantial raises over nominal bonuses, with one stating, "We'd rather be given hard-earned raises than three tanks of gas." This reflects a desire for meaningful compensation rather than short-term incentives that may not significantly improve their financial situations.
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