The owners of Alice’s Tea Cup, Haley and Lauren Fox, are considering selling the business they began nearly two decades ago at 102 West 73rd Street. The sisters cited staffing shortages, bad weather, pandemic regulations and the hurdles of running afternoon tea outside during the pandemic, the New York Times first reported.
“We were in the middle of building the interior when Sept. 11 happened,” said Lauren Fox, 51. “When people sat down for a pot of tea and a scone they felt safe, comforted and normal. There are no windows inside, so it’s a real rabbit’s hole feeling, like you’re hidden from everything. People really responded to that, and to us.”
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A key component of Alice’s charm is the atmosphere inside, and the pandemic made that experience extremely hard to enjoy with indoor seating regulations. “We are a destination spot for family gatherings, friends connecting, kids having tea with their parents, and birthday, baby and bridal parties. Those things can’t be transferred,” said Haley Fox, 47. “During Covid the word ‘pivot’ was used a lot. People kept saying, ‘We will pivot to a delivery business or make the front a grocery store.’ There’s no pivoting for us. This is a niche business.”
A cup of tea on the sidewalk is obviously a different experience than the cozy whimsical décor the Fox sisters curated for Alice’s, which also has locations on the Upper East Side and in Brooklyn Heights. Children under 12 make up a large percentage of Alice’s patrons, and since vaccines haven’t been approved for them yet, this makes demand for outdoor seating very high.
In June 2020, the Fox sisters received an $800,000 grant from the Restaurant Revitalization Fund for each of their Manhattan tea houses. They told the Times if it wasn’t for this federal program they would have folded within the year and yet, they still faced a plethora of challenges money couldn’t fix including forced lockdowns, constant regulatory changes, the trial-by-error evolution of their outdoor spaces, inclement weather and staffing shortages.
Alice’s Tea Cup reopened in April 2021, welcoming customers for the first time since December 2020.
But since reopening, they’ve struggled to keep up with the demand for outdoor seating. “We are sitting on something that needs expansion and the right people who understand our vision and know how to do that. We don’t. We can no longer grow it or help it thrive.”
Alice’s Tea Cup is beloved by locals and celebrities alike. Upper West Sider Amy Schumer is a big fan, having filmed part of her 2015 movie Trainwreck at the Upper East Side location (known as Alice’s Tea Cup Chapter II).
We hope this story has a happy ending.
This is sad. I will say though— earlier hours for a weekday morning scone would get them a lot more business! I don’t understand why there are no good bakeries/tea/coffee in the area that will do a 7am or even 8am opening. There are too many places open at 9am+ and even then not on time, missing out on early birds and weekday 9-6 workers.
Agreed, you need to be open at 7am. Also, if you are thinking of selling, probably not the best idea to advertise all the problems with your business. Great to see the honestly, but not helping yourself! I hope they can keep it going and adapt.
A big problem is the over-regulation by NYC and NY State. Constant inspections, fees, fines, permits, taxes and overwhelming amounts of paperwork that small businesses can’t keep up with let alone afford. Also escalating real estate taxes passed on to the retail tenants and it’s no wonder why nothing lasts anymore on the Upper West Side.
It’s truly the worst city and state for small restaurants to open in. On one hand you have a huge population base and on the other hand NYC and NY State will find a way to take all of your money away. Alice’s is a wonderful business but I can’t blame them for wanting to sell.
Yawn.
Other similar small businesses on the UWS thrive.
I see you omitted preposterous retail rents from you list.
No, the scones ain’t good, and that’s a big thing for Alice’s Tea Cup to have done wrong for nearly 20 years.
I doubt there are many Tea Shops or Coffee Shops thriving on the UWS. Even though they may seem busy the expenses are so enormous in NYC that they are all lucky if they eek out even a minimal profit. I should know as I am in the restaurant / bar / retail business on UWS for 25+ years. Also rents are definitely too high but NY State raises real estate taxes every year which is a large part of why retail rents are so high. I know that personally as well as owning some small buildings on UWS with restaurant tenants.
There’s frequently a line out the door, and a very busy set of sidewalk chairs, at Black Press Coffee around the corner. This has been true for more than 12 months. Excellent coffee/lattes/milk, so so pastries though.
You don’t seem to know much about the UWS and have extrapolated your experience to make unsupported broad statements.
Retail rents are high because far too many landlords carry masses of speculative debt instead of basic mortgages. (Not saying you’re one of those landlords–but Reaganomics is a big problem for 97 percent of the US population.)
I’ve been on UWS for over 30 years and have had businesses / retail and restaurants on the UWS for most of that time. On 72nd St. alone 75% of the businesses are new in the last 5 years.
Also I’ve seen busy coffee shops come and go on the UWS. Rents and other operating expenses are so high that Black Press would be lucky to net even 10 percent on their revenue. I love Black Press and hope they last but rents, regulations etc. etc. makes operating any of these businesses minimally profitable at best. Rents are high ( but coming down for commercial spaces ) as operating expenses, taxes, mortgages, repairs are all enormous along with whatever debts landlords may have.
Your claims about the fraction of new business on W72nd in the last 5 years are dubious, try 50%.
That you love Black Press isn’t relevant to the point that Black Press has been doing a good business for 14 months. Remember that you broadly stated no coffee shops on the UWS are doing well.
NYC and State regulations don’t mean that Alice’s need sell subpar scones and cookies, and base it’s business model on selling packages of tea and snacks that start at $25 apiece. Levain doesn’t say you must buy 5 cookies.
Sorry many NYC landlords (and I’m not implying or saying you’re one) took on highly dubious mortgages. Reaganomics is a failure for nearly everyone.
Ok say 50% are new in last 5 years – that’s still an enormous amount of turnover. It used to be one or two stores a year changed hands on 72nd St. between Amsterdam and Columbus.
Also I would say most Coffee Shops on the UWS are busy but doubtful any of them are making much money. LE Pan closed on 72nd, Aroma closed on 72nd, Box Kite Coffee closed on 72nd St. Grandaisey Bakery closed on 72nd St. Most of them had good products and most were very busy but they couldn’t last because of all the enormous operating expenses in NYC.
It sounds like you have no experience in the restaurant business or coffee shop business. I do and I can tell you selling $4 coffee at Black Press no matter how busy they are it’s tough to pay the enormous expenses of operating in NYC. You seem to think just because there is a line out the door in the mornings and then 16 chairs are full that they are making money. I bet they are barely making anything.
Remember Aroma Coffee on 72nd St. They were always busy and it was hard to get a seat. I was friends with the owner and he couldn’t afford to stay open. Before you respond why don’t you tell me your experience in the retail or restaurant business in NYC. My opinion and analysis is based on 25 years on the UWS operating restaurants and bars.
“Also I would say most Coffee Shops on the UWS are busy but doubtful any of them are making much money.”
But that’s your guess, and you started out by saying no coffee shops on the Upper West Side are doing a good business in late 2021. We’ve gone over this: You didn’t say, “some coffee shops are suffering a continuing big decline in business”. I already acknowledged that I would have agreed with that statement.
For years, the owner of Aroma chose to be a jerk to a lot of his immediate West 72nd neighbors. He deserved to have to close.
Saturday, Nov 13th, line out the door of Black Press. Basically directly across Columbus, no line to get Starbucks “coffee”.
And the coffee at Aroma is close to terrible. So that’s completely independent of the West 72nd street location arrogance.
Interior design lesson for you and Aroma, tiled walls and ceilings make for a really loud unpleasant interior.
Perhaps if the scones were any good that fact would sustain the business through hard times.
That’s the only food I’ve had there, and the scones were a joke.
Sarabeth’s scones are right, though I don’t find any great appeal in Sarabeth’s.