Real Estate

Subway series

Even though there’s about one Subway for each of the 73 square miles of Brooklyn, the slender slanted sandwich company is determined to expand to about 100 stores.

“We are going full tilt on expanding in Brooklyn,” said Daryl Meyers, Subway’s development agent in Brooklyn. “In fact, Brooklyn has fewer stores per population than any other place in the US.”

For instance, he said there is probably room for more stores as Gateway Center expands and new opportunities emerge at the upcoming Atlantic Yards area.

“There will be new opportunities out there that we haven’t even thought of yet,” said Meyers.

Meyers is a former Subway franchise owner who went to work for the company itself in 2000. As a development agent, Meyers now works with potential and current franchisees as well as brokers to find locations, negotiate the leases and then get the stores built out and up and running. All the leases are signed with Subway itself, so the leasing department can jump in and intervene with owners, or take over the location if and when necessary.

Meyers works with the franchisee so they understand what is required, and with the building owners to make sure they don’t have issues with the Subway franchisee.

The cost of a franchise is a modest $15,000, but the total cost to build is around $200,000, Meyers said. “It’s the franchisee’s responsibility to find the location but we work with them day in and day out,” he said. “They have to find the right location that’s not too close to another [Subway] and at the right price.” The brand does not have any special limits between stores.

Because every location is different, Meyers said lease costs can run from “modest to enormous.” For instance, the J Street store costs “a lot” in rent but the area foot traffic makes it “worth it.” In mostly residential areas with lower volume, stores usually pay less rent.

Abe Labaton of Vicus Partners, who has worked with Subway on several Brooklyn deals, said, “We are looking to expand close to schools, hospitals and near transportation hubs.”

Labaton recently represented Subway at 1622 Bedford Ave. by the CUNY school, Medgar Evers College in Crown Heights, and has others in the works.

“We have five stores in construction and another seven stores in negotiation and another four stores with offers in,” said Meyers. Labaton is involved with many of these.

According to Meyers, Subway locations have to be a certain size -— from 700 to 1,800 square feet with a width of 14.5 feet or more. While Subway will design the store, the franchisee is able to hire the contractor as long as they are insured and can build to Subway specifications.

Franchisees are also required to go to Subway headquarters for a two-week training session where they learn about the basics of running the business. They also learn how to bake rolls and cookies.

A member of the staff works side by side with the new franchisee for about 70 hours on the entire operation. “Most of our franchises are sold to people who already own a store,” said Meyers.

The goal is to reach 100 stores in Brooklyn by 2012. “Then there will be a new goal for 2015,” Meyers said.

— Lois Weiss