Glasauer, a Saratoga resident and owner of Subway sandwich shops and Baskin-Robbins ice cream stores in Los Gatos and Santa Clara, said she is down but not out. She plans to appeal the planning commission's decision to the city council.

Last summer, the planning commission rejected a conditional-use permit for a Starbucks Coffee shop at Corinthian Corners, but the council overturned the decision, paving the way for the coffee giant to open last November. Glasauer said she is hoping for a similar outcome.

While meetings concerning the Starbucks application packed the Civic Theater at City Hall with people arguing for and against the coffee shop, the meeting concerning Subway had the theater only about a third full.

In public hearings, Saratoga resident Laurel Perusa said allowing a franchise such as Subway to move into the entryway to the Village would turn Saratoga into "Anytown, Anywhere, USA." "I feel it is important to preserve the charm of our Village," she said.

"I appreciate the uniqueness and charm of the town," said Diana Kazarian, a representative for Subway. "The visual appearance of the Village is not being taken away."

Commissioners Robert Kundtz, Michael Schallop, Susie Nagpal, Mike Uhl and Jill Hunter came down against the application, finding that Subway would not preserve the small-scale pedestrian character of the Village for shoppers and diners and could cause traffic safety problems. Since Subway is known for its young "stop-and-go" customers, concerns were raised about the proposed location at the intersection of Big Basin Way and Saratoga-Los Gatos Road. Kundtz wanted to know the demographics of Subway customers, which Kazarian said were predominantly people ages 18 to 36.

Hunter said the shop would negatively affect other stores in the Village that sell sandwiches and would cause traffic problems, particularly with high school students during the lunch hour. "I've lived next to that Village for 25 years," she said. "I moved here because of the Village. It's a special place in California."

Another issue for the commissioners was the green and white Subway sign planned for the building. Glasauer and Kazarian said they could be flexible on the materials that make up the sign but could not change the colors and character of the copyrighted logo.

Hunter said if the unique character of the Village is going to be preserved, an anti-franchise ordinance might have to be enacted.

Uhl agreed, saying there was a need to look at the city's ordinances before more franchises attempt to move in. "People live here as an escape from the valley," he said.

Commissioners Linda Rodgers and Manny Cappello voted in favor of the Subway permit. Rodgers disagreed with the estimated number of stores selling sandwiches in the Village, which community development director John Livingstone said was about 15. Rodgers said that by including restaurants closed during the lunch hour, caterers and the Union 76 service station, the count was inaccurate.

Cappello said he liked Subway's customer base, that the shop had a well-designed interior and would be a strong tenant. He questioned conflicting statements during public hearings about whether the shop would draw more people into town or draw its customers from people who worked in the Village. But, he said, Subway would add to the mix of businesses in the Village rather than detract from it.

Glasauer and Kazarian said they were not surprised by the commission's rejection of their conditional-use permit and hoped that the city council would see things differently. "It's a process," Kazarian said. "We'll see how it goes."

But Saratogans Jenni Taylor and Cynthia Barry were happy with the decision. "The planning commission was right on target," Barry said.

"The presence of Subway belies the beautiful and historic ambience of our Village," Taylor said.