By Gus Saltonstall
Alice’s Tea Cup, the popular Wonderland-themed cafe that first opened on the Upper West Side in 2001 and has two other New York City locations, is changing ownership hands.
On Monday, Alice’s Tea Cup, which has a location at 102 West 73rd Street, filed for an “assignment of benefits for creditors.” The filing means that the tea shop is turning over its assets and debts to a law firm that will now oversee the restructuring of those debts.
Legal documents show that Alice’s Tea Cup owes roughly $230,000 to credit card companies and other vendors, with the largest chunk being $150,000 owed to the Small Business Administration.
Importantly, though, and following an incorrect report Monday that Alice’s Tea Cup was shutting down, the business is very much remaining open.
West Side Rag visited the Upper West Side location on Wednesday, where employees emphasized they are not closing, and, if anything, had recently expanded hours.
That was confirmed later in the day by founder and former owner Lauren Fox.
“No location is shuttered or shuttering and the party goes on,” Fox, who founded the tea shop with her sister Haley, told West Side Rag. “After 23 years, Alice’s Tea Cup finally found the right people to pass the baton to and the group is led by Jeni He who plans to be faithful to the core concepts and brand, and grow Alice’s Tea Cup beyond the current locations.”
Fox told the New York Post that He has past experience overseeing restaurants.
The price of sale was not disclosed.
In the end, those who like to take their tea in Wonderland can breathe a sigh of relief, as Alice’s Tea Cup will continue to provide its signature experience on the Upper West Side. Read more about that experience — HERE.
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They need a new awning.
Somebody really wants to lose money.
They’re $230,000 in debt and they’re talking about expanding? What’s wrong with this picture?
Optimism is never a bad thing. My parents survived the holocaust. And they never lost their optimism. It is the soul of hope.
There’s optimism and there’s delusion. They’re not the same thing.
They’re selling re-packaged simple carbohydrates at a price below the total cost. Sweet little sentiments can only go so far to help with that “business model.”
There are so many storefronts on the UWS with filthy awnings. This makes the establishment look rundown and inviting. It also makes the street look grimy.
Scrubbing these awnings could go a long way towards increasing foot traffic and profits. The new owners of Alice’s Tea Cup should either clean this awning or replace it.
This simple, common sense action could be a lot more effective than financial shenanigans to save this business.
But can we please take note of the beauty of the line, “ those who like to take their tea in Wonderland…”? Let’s stop and smell the roses… Lovely. Thank you.
Gus is fantastic writer. It’s one thing to do good reporting – it’s another to make it fun to read.
I love Alice’s scones, but they’re a lot more expensive than they used to be, and over the last several years, Alice’s has eliminated several of the things that used to support neighborhood residents’ loyal patronage: being open for weekday breakfast; being open until 7 p.m., so that locals could stop by and purchase baked goods on the way home from work; offering scones at 2-for-the-price-of-1 after 5 p,m.; loyalty punch cards. In the beginning, Alice’s tried to be a neighborhood business; in recent years, it has seemed to cater entirely to birthday parties, bridal showers, and tourists. It needs a different business model, one that renews its commitment to creating a steady customer base in the neighborhood.
Alice’s used to be a fun treat, but I’ve stopped going there due to bad service and increasingly lower quality of everything 🙁
That being said, as someone who loves an afternoon tea, I hope this new management can help turn the business around!!
Bidenomics
Record high employment, inflation dropping – and faster than most other countries after the pandemic. Rebuilding the nations infrastructure, record high stock market, etc, etc. Sorry to disappoint. Peace
Tell that to the many many new restaurants and cafes opening in the neighborhood. Maybe Alice’s just can’t compete?
I hope it survives. It carries many memories for me.
Love reading comments from all the business owner experts on here. 🙄
Maybe they are business owners?
I’ve stopped by this business many times returning from Central Park and always enjoyed their scones. Staff was friendly every time and the scones are delicious. I never noticed the cleanliness of the awning. But I am shocked at not only by the high debt levels, but how expensive the debt is. Credit cards with double digit rates? Clearly the owners know a lot about baked goods and tea, but like a lot of small business owners, they need guidance with money matters. You don’t need to be a CPA, but you should consult a good one. I do wish the former and new owners luck in navigating the future of this wonderful neighborhood gem.
Pekarna on Amsterdam also played into the whole Alice in Wonderland thing. They closed too. Does anyone even know what that is any more?
Still Pekarna. Undergoing renovations and ownership change.
If only they had gone here instead of Cafe Lalo (RIP) in You’ve Got Mail! It would have picked up a lot of tourist business.
The proliferation of overpriced, pretentious coffee place has really hurt their business. The neighborhood is saturated with them. People complain about having no money and how expensive things are yet drop a small fortune per week getting coffee. Make a K Cup at home and stop whining!
What is this comment? You are lamenting the lack of customers at a neighborhood coffee shop but then chastising people who purchase coffee at coffee shops in the next paragraph.
I wonder if the $150k owed to the Small Business Administration is a PPP loan that was not forgiven.
The $150K was not PPP. It is a SBA loan given as part of the COVID disaster relief program. Almost all small businesses that applied for PPP were offered these as well and they were handed out very quickly.
The negativity in the comments is exhausting. A business isn’t closing after all. This is a good thing. I happen to love their scones but even if you don’t, how about celebrating that a restaurant won’t be shuttered? Yeesh.