Palais des Thés to shut both NYC locations
French specialty tea retailer Le Palais des Thés is shutting down both of its Manhattan locations, highlighting the challenges of operating a profitable tea store in New York City. The company, which oversees over 40 locations worldwide, cites different consumption habits this side of the Atlantic, where shoppers prefer specialty supermarkets and are less inclined to shop around store to store. Instead, the company announced plans to focus on getting on the shelves of specialty retailers like Le District and Dean & DeLuca. The French chain also aims to gain a larger presence in restaurants and online thanks to dishes that integrate tea and other product innovations. Le Palais des Thés has 27 shops in France and another 10 planned to open this year. It also boasts 15 international locations in Europe and Japan, with about a third of all shops operated by franchisees. Annual sales reached 25 million in 2015.