Sub-sandwich chain readies push into Reno and Tahoe

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A sub sandwich company is scouting the Reno area for sites for eight to 10 restaurants, and it's looking for another three or four sites in the Lake Tahoe area.

The locations would be the first in the region for Lenny's Sub Shop, a Memphis-based brand that's making a big push into the West.

JCP Renascent Group, a group of investors from the Lake Tahoe and Sacramento areas, plans to open a total of 41 Lenny's locations in Reno, Lake Tahoe and Sacramento.

The group purchased a franchise that covers Washoe and Douglas counties along with Carson City in Nevada. The franchise also covers Sacramento, El Dorado and Placer counties in California.

Linda Costas, executive vice president of real estate and construction for Lenny's Franchisor LLC, said JCP Renascent plans to open its first store in Sacramento this year.

Plans for the Reno market, she said, depend on the availability of real estate.

Both markets, Costas said, are attractive to the company because of their strong economic performance in recent years.

The company looks for locations with a daytime population of 8,000 within a one-mile radius and traffic counts of at least 20,000 vehicles a day.

Its franchise owners usually locate in new or renovated shopping center space, and the company likes to be near medical facilities, colleges or office and industrial parks.

Lenny's Franchisor LLC estimates the start-up costs of a location at $174,400 to $280,500 a figure that includes anywhere form $60,000 to $100,000 in tenant improvements on the real estate.

The company positions its sandwiches as Philadelphia-style subs made with fresh baked breads. It was launched from a single location in a Memphis suburb in 1998.

Lenny's has sold franchises for more than 600 locations in 17 states since the company was acquired by a group of private investors in 2004.