Saving 'wonderland', one cup at a time

When Jeni He took over Alice's Tea Cup on Manhattan's Upper West Side, the well-known New York tea shop was already under strain. Once a beloved local institution with multiple outlets, the brand had struggled to recover from the pandemic and mounting financial pressures.

"I didn't want to see the brand disappear," He said. "It has been part of the neighborhood for more than 20 years."

Founded in 2001 by sisters Lauren and Haley Fox, Alice's Tea Cup quickly became a neighborhood favorite. Inspired by Alice in Wonderland, the whimsical tea shop built a loyal following for its afternoon tea sets, fresh-baked scones and storybook charm.

Over the years, it grew into a local institution, attracting celebrities including Julia Roberts, Conan O'Brien and Katie Holmes, while drawing generations of families and visitors. At its peak, the brand expanded to three locations across Manhattan.

The business had been under pressure even before the change in ownership. Like many hospitality businesses in New York, Alice's Tea Cup struggled during the COVID-19 pandemic, when indoor dining restrictions and shifting regulations disrupted operations.

Although it received federal relief funding, challenges persisted, including staffing shortages, rising costs and the difficulty in adapting indoor tea service to outdoor dining. At one point, the workforce shrank significantly as employees left the city during lockdowns.

By 2024, mounting financial difficulties prompted the founders to seek a new owner to keep the brand alive.

"When we first opened, it felt like everything we wanted to see in a neighborhood restaurant was what everyone else wanted to see, and it felt very rewarding and gave us such a community," said Haley Fox, cofounder of Alice's Tea Cup.

"Over the years, we've watched children grow up and throw their (baby) showers remembering how we threw their birthday parties — there's no feeling to replace the pride from that," Fox said.

While the ownership transition was bittersweet, Fox said she trusted the new owner to continue the brand.

Personal commitment

For Jeni He, taking over the business was both a professional decision and a personal commitment to preserving a neighborhood gathering place. Entrepreneurship, she said, had long appealed to her.

Her path into the restaurant industry was also shaped by family experience. Her father immigrated to the United States in the late 1980s, first settling in New York's Chinatown before moving to a small town in Pennsylvania in search of a quieter environment and better education opportunities for his children. He later opened a Chinese restaurant there.

Growing up in that setting, Jeni He became familiar with the rhythms of the service industry from an early age.

Like many small-business owners, she said running the tea shop has involved a range of challenges. It has also required difficult decisions. When He took over the brand in 2024, Alice's Tea Cup had three locations, all operating at a loss.

"To save the business, I had to close two stores so that the remaining one could survive," she said.

The move helped stabilize operations, allowing the remaining location to become profitable after months of losses. She described the decision as painful but necessary.

Tucked along a quiet street on Upper West Side, the shop offers more than 50 tea varieties, alongside afternoon tea sets with freshly baked scones, finger sandwiches and sweet treats.

Building on that recovery, He is exploring ways to expand the brand beyond its current site. Plans include an online store to meet frequent requests from visitors seeking to purchase the tea outside New York.

She is also considering franchising opportunities, with at least one agreement already in place for a new outlet in New Jersey.

Despite challenges, He said most of her day-to-day interactions with customers have been overwhelmingly positive. Community support, she added, has been a major source of motivation.

"A place like this is not just about tea," she said. "People come here to celebrate birthdays, baby showers, or simply sit down and relax."