Tea Palace shop and cafe in Low Petergate in York has closed

The Tea Palace, a London-based tea company with a Barnsley manufacturing base who sell at Harrods and the Orangery in Kensington Palace, opened in Spring last year in Low Petergate.

They took on the old Mr P’s Curious Tavern and at the time sales director, Daniel Ibbotson, said at the time they had a takeaway tea menu of 180 different blends - the largest in Yorkshire and possibly the country.

As of a few days ago the shop closed and Mr Ibbotson confirmed it has now closed for good.

Daniel Ibbotson

He said: "It's not been an easy decision, but running costs have become too expensive for us to remain open. It's the costs that have done for us and it's such a shame.

"The location was fantastic, but out electriticty and gas bill is nearly £3,000 a month now  and to just break even we need to make about £25,000 a month.

"The Summer months have been brilliant for usbut we haven't even made enough over a busy Summer to have a buffer for the quieter period.

We would like to thank all our customers for their support over the last two years, but we just can no longer afford to operate from this site.

"It is a shame as we have invested large sums of money and time into the venture.

"A special mention must be given to the management team and staff members from York, they have all gone above and beyond to keep the place going. 

"The running costs are continuing to spiral; between rent, rates, wages, and utilities. Looking into the next 6 months, we could only see the rates increasing, cost of food items doubling and there is no way in which we can charge over £5 for a pot of tea. 

"The two-floor building is better suited for yet to say another multiple chain restaurant or pub.

"We simple don’t have the same level of financial reserves to completely overhaul the site.

"As you can see from around the street larger national vendors are absorbing the market share due to shear brand mass. 

"I feel that York is becoming a bit too hen party and stag do focused, and a tea shop doesn't fit in with that.

"The entire business is being relocated to Saudi Arabia and will focus on offering English tea and related British products from both Riyadh and Jeddah store locations.

"We have always had a strong identity in the Middle East and are exploring a new developing market especially with the Kingdom’s Vision 2030 goals."

Founded in 2005 The Tea Palace used to have a shop in London’s Covent Garden and they currently sell many different London blends online.

Mr P’s Curious Tavern closed in 2020 having first opened in Low Petergate in 2016.

The man behind the venture was York’s Andrew Pern, the executive chef/director of The Star Inn the City in York, The Star Inn The Harbour in Whitby and the Michelin-starred Star Inn at Harome, near Helmsley.