The relaunch of the Pfeffermühle in Zurich was not without difficulty. Although Erika Mann, Therese Giehse, Magnus Henning and Sybille Castle - the core of the ensemble - went into Swiss exile, approval for the opening of the cabaret was subject to a number of conditions by the Swiss immigration authorities. One of these conditions was that at least two Swiss nationals had to be employed in the ensemble. Secondly, a performance permit would only be granted if there was a strong literary emphasis. This was because Swiss asylum laws granted no asylum to the persecuted "if they continue their machinations and attacks on the existence and legal security of other states", (quoted from:) Helga Keiser-Hayne, Beteiligt euch, es geht um eure Erde, 1990) – a difficult balancing act.

The cabaret opened on 30 September 1933 in the theatre hall of the Zurich "Hirschen Hotel". The audience and the bourgeois press responded enthusiastically. In the subsequent tour of Switzerland the Pfeffermühle played to sold-out halls.

In the course of the three exile shows, the Pfeffermühle became gradually politically more radical. Although they remained true to the principle of speaking in code and not naming names, the cabaret was also under observation by the German Reich. As early as February 1934 Thomas Mann, as evidenced by a diary entry, was cross-examined by the German Consul-General when renewing his passport on account of his daughter's "imprudence". And the "émigré cabaret" also met increasing resistance from Swiss nationalists.