GIGL Investor Deck April 2018

Award-winning, family-friendly restaurant where you can relax and enjoy
outstanding food while your kids play to their hearts’ content.

This presentation contains forward-looking statements. These statements relate to
future events or expectations regarding our future financial performance. These
statements are only predictions and involve risks and uncertainties, including, but not
limited to the ability to open the new location, fulfill the terms and obligations of the
lease, and any other difficulties related to risks and effects of legal and
administrative proceedings and governmental regulation, future financial and
operational results, competition, general economic conditions, and the ability to
manage and continue growth.
Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual outcomes may vary materially from those
indicated. Important factors that could cause actual results to differ materially from
the forward-looking statements we make in this news release include market
conditions and those set forth in reports or documents we file from time to time with
the SEC. We undertake no obligation to revise or update such statements to reflect
current events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Forward-Looking
Statement Disclaimer

Who We Are
Award-winning solution to family dining and
entertainment. Parents get to eat and relax,
while kids frolic in supervised play area.
 Unique, family destination with giant kid-friendly play
area in a true restaurant environment
 Delicious, nutritious, organic menu catered to young
children (1-10) and accommodative to parents
 Activities every half hour including arts and crafts,
games, karaoke, character appearances, dance parties
and more, as well as puppet shows & themed nights
 Trained aides assist with children’s enjoyment while
parents relax
 Child drop-off service (while parents shop)
 First and only restaurant to offer this service in LA
Where playtime,
healthy food, and
happy families
converge.

Treat your children like the stars
they are with red-carpet-worthy fun.
Giggles ‘N’ Hugs, Tinseltown’s
favorite tot hotspot, is where
playtime, healthy food, and happy
families converge.
L. Souris Hong-Porretta, Editor
“
L O S A N G E L E S

 Voted “#1 Family Restaurant” by Yelp!
 Rated among “Best Family & Kid-Friendly Restaurants”
by CitySearch and GoCityKids
 Voted the “#1 Birthday Party Place” and
“Best Pizza in Los Angeles” by Nickelodeon
 Voted “Best Indoor Play-space” by Red Tricycle
Award-Winning

Extensive Local &
National Media Coverage

Celebrity Clientele
Jennifer Hudson and son David
played at Giggles N’ Hugs in LA
before going on to have an early
dinner together.
Adam and Sadie Sandler at
Giggles N’ Hugs
Ben Affleck taking Violet to
Giggles N’ Hugs
Halle Berry and Nahla at
Giggles N’ Hugs in LA
Gwen Stefani and Gavin Rossdale take
their boys, Kingston and Zuma to Giggles
N’ Hugs in LA on Sunday, March 6.
Jessica Alba and Cash Warren take their
daughter, Honor to birthday party at
Giggles N' Hugs, November 10
Sarah Michelle Gellar and daughter
Charlotte love Giggles N' Hugs
Victoria Beckham and
Harper at Giggles N’ Hugs

Where We Are Today
 10-year lease signed February 2013
 Opened November 2013
 Sales up 12.3% in 1H17
 Generating positive cashflow of 30%
 6,000 sq. ft.
 47% of households with children
 23% of household income >$100k
 10-year lease signed February 2012
 Opened March 2013
 Sales up 7.2% in 1H17
 Operating at breakeven
 5,900 sq. ft.
 38% of households with children
 30% of household income >$100k
Westfield Topanga Shopping Center
Canoga Park, CA
Glendale Galleria1
Glendale, CA
1 Owned/operated by General Growth

Proven Ability to
Drive Foot Traffic
 GIGL drives family traffic to mall properties:
 Turns malls into major family destinations
 Increased high-value family foot traffic
 Creates Vitality and Vibrancy within the mall
 Mall owners/operators offer significant concessions & allowances:
 Discount on rent
 $500K-$700K up-front cash (covers 50% of build-out)
 Strong interest from major mall operators
 Westfield Group (55 properties)
 Macerich Group (62 properties)
 General Growth Properties (135 properties)
 Simon Properties (300+ properties)
 Todd Star, former Westfield senior executive, spearheads
negotiations with mall operators
 Negotiates deals on per-location basis
 Pursuing primary and secondary space opportunities
 Strengthening balance sheet enables pursuit of multiple
opportunities

Strategic Expansion Plans &
Global Franchise Opportunity
 Targeted expansion of corporate-owned
locations in key markets across the US
Party rentals key revenue driver
Focus on markets with less favorable weather than
Southern California expected to lead to higher revenue
per square foot
 Number of new locations based on capital
raised
$2M raise; approx. 3 new locations
$5M raise; approx. 6 new locations
 Potential demand for domestic and international
franchise opportunities from large multi-unit
operators and small individual franchisees
Upfront multi-unit licensing fees ($100Ks to $millions)
Ongoing royalties (3%-8% of gross sales)

Attractive Single-Store
Economics
Build-Out +$960,000
Pre-Opening Expenses +$240,000
Initial Investment (gross) $1,200,000
Tenant Improvement Funds -$600,000
Total Company Cost
$600,00
0
 Targeting:
 High-traffic, upscale retail centers
& shopping malls
 Lifestyle/entertainment centers
 Areas with children under 10
 Markets with less favorable
weather
 Empirical site selection model
 Rigorous ROI review
 4,500-5,000 sq. ft.
 Smaller footprint provides better
unit economics
Typical Costs to
Launch New Store
Site Selection Strategy Average Payback in 2.5 Years
(in thousands)
YEAR 1 YEAR 2 YEAR 3 YEAR 4
Revenue $1,400 $1,470 $1,544 $1,621
SSS Growth n/a 5% 5% 5%
Costs ($1,070) ($1,126) ($1,185) ($1,247)
Store Net Profit $330 $344 $359 $374
Corporate Op.
Costs
($50) ($50) ($50) ($50)
EBITDA $280 $294 $309 $324
EBITDA % 20% 20% 20% 20%
Menu updates expected to drive cost and EBITDA improvements
 Currently generating approx. $3 million revenue annually
 Breakeven attainable with two (2) additional locations

Track Record
of Growth
2012.0
2013.0
2014.0
2015.0
2016.0
$0$1$2$3$4
$1.3
$2.3
$3.3 $3.5
$3.1
20% CAGR
*
* Reflects sale of Century City location in June 2016
REVENUE
(in millions)

Sean Richards
Chief Operating Officer
Greg Schroeppel
Master Chef
Joey Parsi
Founder
John Kaufman
Interim-President
Philip Gay, CPA
CEO
Experienced
Senior Leadership
 20+ year career on Wall Street
●
Sutro & Co., Lehman Brothers, & TD Waterhouse (managed $350M+ in assets)
 Founded Giggles N’ Hugs in 2007
 Former COO of California Pizza Kitchen
●
Grew from two locations to 70+
 Former President/COO of Koo Koo Roo
 33 years of restaurant industry experience
 Former president & CEO – Grill Concepts, Inc.
 Former CFO – California Pizza Kitchen & Wolfgang Puck Food
 Former CEO & COO – Diversified Food Group
 Former CEO – Color Me Mine
 Managing Director of Triple Enterprises
 30 years of restaurant industry experience
 20+ Years of operations management experience
●
Regional Director at Hootwinc, LLC (7 Hooters restaurants, 1 casino & 2 bars)
●
General Manager, Viper Room, Pink Taco, House of Blues, Planet Hollywood & Hard Rock Café
 Joined Giggles N’ Hugs in 2010
 25+ Years in restaurant industry
●
Wolfgang Puck, Granita, Eureka, Chinois on Main, Rustica, Eclipse
 R&D chef with Prospective Consulting; developed dishes for:
●
A&W, Applebee’s, KFC, Arby’s, Arco AM/PM, Frito Lay, Vons, La Salsa, Shoprite, HEB, and others
 Executive Chef at Paragon, a boutique catering company
●
Serviced high-profile events such as Sony E3, Independent Spirit Awards, post and pre Emmy
parties, Oscars, Super Bowl, and more

dOMAIN is a leading marketing, public relations, branding, and communications
firm that provides innovative and game-changing strategies and campaigns for
a roster of A-list celebrities and leading corporate brands.
Partnered with dOMAIN for
Brand Strategy & New Markets
 dOMAIN crafts rich, tightly structured, multi-platform
programs that amplifies awareness in the marketplace
for brands and their products.
 dOMAIN measures impact to influence how content and
individuals drive the dialogue that ultimately
contributes to awareness, engagement and sponsorship.
 With expertise spanning more than two decades,
dOMAIN builds brand value with best-in-class concepts,
consistently shatters expectations, and strengthens
bottom-line results.

Celebrity Brand Ambassadors
& Super Fans
Jillian Michaels Tia Mowry-Hardict
World’s leading fitness expert and a
renowned life coach with an
international community of followers
100 million + strong.
Trusted public figure on health and
wellness recommendations with
engaged active fan base.
Two decades of success in
entertainment, just wrapped third
season of successful Cooking Channel
series and released first cookbook,
an Amazon #1 seller.
Large fan-base (100 million +) across
social platforms and TV.

HIGHLIGHTS
 First-of-its-kind family restaurant and play space
 Addresses unmet consumer need
 Proven ability to drive foot-traffic for mall operators
 Plans to expand via corporate-owned locations and franchises
 Experienced management team
 California Pizza Kitchen, Koo Koo Roo, Wolfgang Puck Foods, Color Me Mine,
House of Blues, etc.
 Significant interest/support from major mall operators
 Rent concessions with tenant allowances ($500k-$700K) that offset 50% or
more of per location start-up costs
 Rights Offering will strengthen balance sheet, meeting key mall operator
criteria
 Ability to deliver same-store to deliver financial performance
 Same-Store Sales up 6%-10% in first half of 2017
 20% CAGR (2012-2016)
 Potential future revenue drivers
 Food, beverage, merchandise, etc.
Investment
Highlights
Recent Price $0.03
Market Cap $3.5M
Shares Outstanding 145M
Ave. Volume (3 mth) 1M
OTCQB: GIGL

Rights
Offering
200 (approx.) investors participated in Rights Offering
Units Sold: x.x million
Capital Raised: $650,000
Next Steps:
1. Complete negotiations with mall owners for X new locations
2. ?

Additional Revenue Drivers
via Licensing & Merchandising
 Plan to sell branded merchandise in-store as well as at top-tier
retail outlets (Nordstrom, Bloomingdales, Whole Foods, etc.)
 Potential merchandising opportunities:
 Organic food products (i.e. Frozen Pizzas with Mom’s Tricky Treat Sauce,
Mac N Cheese with Mom’s Tricky Treat Sauce, etc.)
 High-quality children’s apparel and accessories
 Kids furniture
 Drinkware/snack cups (BPA Free)
 Coloring books & stickers
 Children’s vitamin water
 Agreement with Domain Integrated to develop
merchandising strategy; expertise includes:
 Extending brands into licensed products
 Bringing in celebrity endorsers
 Creating new revenue streams
 PR and Reaching new customers

10250 Santa Monica Blvd. #155
Los Angeles, CA 90067
Tel (310) 553-4847
info@gigglesnhugs.com
Joey Parsi, CEO
Giggles N’ Hugs
Tel (310) 780-0770
joey@gigglesnhugs.com
Michelle Steinberg
dOMAIN Integrated
Tel (323) 549-0012
michelle@domainintegrated

Appendix: What Our Customers Say
“As a parent are you tired of always
feeling forgotten, forced to eat "kids"
not so flavorful pizzas or dinosaur
shaped chicken nuggets? Well, Giggles
N Hugs is an awesome answer to
some of your problems.” – 10/10/16
“The food was great, service was
fast despite being extremely
busy...and everyone at Giggles N'
Hugs was very friendly!
We will definitely be coming
back! ” – 9/11/17
“The entire experience was
amazing, from the booking
and planning with Marielle to
the day-of food service and
entertainment.” – 7/28/17

Organic & Nutritious
Menus for Adults

Organic & Nutritious
Menus for Kids

GIGL Investor Deck April 2018

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GIGL Investor Deck April 2018

Editor's Notes