February 15, 2006     Saratoga, California Since 1955
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Subway sandwich shop wants to join Starbucks in Saratoga Village
By Jason Sweeney
A Subway sandwich shop could open in the Village at Corinthian Corners.

Miya Glasauer, a 15-year Saratoga resident, has applied for a conditional use permit to open a Subway franchise in the same shopping complex where a Starbucks Coffee shop opened last November.

The planning commission will vote on the Subway permit at its regular meeting on Feb. 22 in the Civic Theater at city hall.

Glasauer owns a Subway and a Baskin Robbins in Los Gatos as well as in Santa Clara. "I want to be a healthy, positive addition to downtown Saratoga," she said. "I'm not going there to wipe out existing businesses. I want to bring in more foot traffic to stimulate the downtown. I believe the pie is big enough for everyone."

Diana Kazarian, a development agent representing Subway, described Glasauer as an experienced franchisee. "She is a businesswoman who lives in Saratoga," Kazarian said. "This a franchisee that lives in the community, and she wants to be a part of the community and contribute back to the community."

The owner of Corinthian Corners, Nasser Hiekali, said he doesn't see the same opposition to the Subway shop that Starbucks faced when it applied for a permit to open at Corinthian Corners. "The fact that people like Subway are coming in shows that they believe in the future of the Village. It's a good sign," Hiekali said.

When Starbucks applied for a conditional use permit last summer, large crowds came to city hall to oppose the coffee shop. The planning commission split 2-2 in front of a packed council chambers sending the decision to the city council. On Aug. 10, the city council voted 4-0 to approve the application.

Public hearings stretched late into the night at both meetings as people voiced opinions for and against the coffee shop. Some of the concerns of opponents included traffic congestion, increased competition for locally-owned coffee shops and a fear that national chains could cause the Village to lose its unique character. Proponents generally argued that Starbucks could boost the Village's flagging economic climate.

Corinthian Corners has seven storefronts, and if the Subway permit is approved, Hiekali will have filled five. Starbucks opened its doors at the shopping complex on Nov. 23. A telecommunications hub occupies another space, and the Break Away Bike Shop and Dr. John Tang's Rejuvé cosmetic clinic are preparing to open their doors at Corinthian Corners possibly this month.

Hiekali has spent millions of dollars to renovate Corinthian Corners, which is located at the head of the Village. He is hoping to turn Corinthian Corners into a vibrant shopping center. "The Starbucks, bike shop and Subway are going to be an awesome combination for that corner," he said.

He said that if the city turns down Subway, he would allow a dry cleaners to go in, but he feels it would not provide synergy within the shopping complex. He said a deal to bring in a bookstore recently collapsed because of concerns about a lack of foot traffic in the Village.

"Frankly, it's difficult to lease in the Village," he said. "It is not an easy task to get good quality tenants to come in. We need people to come in and walk the Village and buy things. We need things that people recognize. Then they will stop and perhaps try other places, too."

Pat Smith owns a deli and catering service, Pat Smith's Extravaganza, located across Big Basin Way from Corinthian Corners. Smith is opposed to Subway moving in across the street. She said the Village is already crowded with places to buy deli sandwiches and more competition would hurt her business, which is already struggling.

"We're here trying to make a living off no foot traffic," she said. "Times have been very tough here for the last four years. I don't mind good competition. But I don't think bringing in another outside food store is what they should be doing here. I'm fortunate enough to have a catering business. If I didn't have catering I'd get the hell out of here quick."

Bella Saratoga owner Bill Cooper opposed Starbucks' entry to the Village and he opposes Subway. "It's a continued dilution of the market," he said. "How many people do you think we can bring in until we start driving people out?" Cooper said that although his restaurant would not be in direct competition with Subway, the quaint and unique character of the Village is a draw for his customers. "If we want the entry to our Village--our historic beautiful Village--to become fast food row, then let them keep coming."

Cooper said that just as at the meetings concerning Starbucks, he would speak out in public hearings in support of local businesses and on maintaining the Village's character.

Hiekali said the era when downtown business districts were made up of mom and pop stores has come to an end. "For the Village to be successful, it needs a combination of national names and locally-owned businesses. That is a formula that would work," he said.

But for Smith, if Subway is allowed to open up shop, she sees her business facing more hardship. She said she would be at the planning commission meeting on Feb. 22 to oppose Subway coming to town, but doesn't know if the turnout will be as big as it was in opposition to Starbucks.

Copyright © Knight Ridder