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OTCQB: GIGL Corporate Presentation September 17, 2013 www.gigglesnhugs.com

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Giggle 'n Hugs Corporate Presentation 4-15-2014

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Page 1: Gigl corporate presentation 4 15-14

OTCQB: GIGL

Corporate Presentation September 17, 2013

www.gigglesnhugs.com

Page 2: Gigl corporate presentation 4 15-14

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.

2

Important Cautions Regarding Forward-Looking Statements

© 2013 Giggles N’ Hugs, Inc. – All Rights Reserved

Page 3: Gigl corporate presentation 4 15-14

A pioneer concept in the family themed restaurant

industry with unique children’ play space

Organic & nutritious menu with a high quality menu

items made from local, fresh foods

Trained “aides” promote family-friendly feel and play

with kids

Multiple revenue drivers generate attractive store-

level profitability opportunities

Large mall operators have expressed keen interest in

rolling out the concept nationwide

3

Overview

Page 4: Gigl corporate presentation 4 15-14

Family restaurant that addresses an unmet need

for high-quality, healthy food in a safe, themed

entertainment environment for children.

3 locations currently with significant interest from

the largest global mall developers for many more

who have also contributed significant cash and rent

concessions.

Our “prototype” has been met with significant

patron adoption, good margins of profitability, and

widespread media coverage.

Revenues: 2011: $1,116,150, 2012: $1,348,691

2013 (6 months): $1,010,431

4

Who We Are…

Page 5: Gigl corporate presentation 4 15-14

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Some of the Celebrity Clientele Generating Positive Press Coverage

Page 6: Gigl corporate presentation 4 15-14

Recent “Free” Press Coverage

Sampling of publications featuring stories on Giggles N’ Hugs…

Page 7: Gigl corporate presentation 4 15-14

Founded by CEO, Joey Parsi, and his wife, Dora Parsi, in response to frustration they experienced dining with

their children.

Recognized and addressed a substantial void in the market by opening the first Giggles N Hugs restaurant in

Brentwood, California in February 2008.

Brentwood was an immediate success, that enjoyed profitability and widespread media coverage.

Westfield approached them for an expansion proposal, including possible nationwide rollout.

In 2010, opened their second restaurant in the Westfield Century City Mall, with Westfield agreeing to pay 60%

of construction costs, with additional concessions.

Opened a second location in March 2013 in the Westfield Topanga Shopping Center, and on February 15, 2013

executed a lease for a third location in the Glendale Galleria Mall, which opened in Novemer of 2013.

The current landlords, Westfield and General Growth Properties, have offered very favorable tenant

improvement concessions and landlord financing on existing leases.

7

Our History

Page 8: Gigl corporate presentation 4 15-14

Smile and befriend the guest at ALL times

Deliver delicious nutritious food

Sincere hospitality & service excellence

Cleanliness & safety

Creating magical moments

Mission: “To satisfy every parent’s need

for a restaurant that serves healthy,

delicious food and caters to their

children's experience as much as their

own.”

Our Mission & Core Values

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Page 9: Gigl corporate presentation 4 15-14

Kid-friendly play area in a true restaurant

environment

Delicious, nutritious, organic menu catered

to young children (1-10) and

accommodative to parents

Entertainment, such 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

9

What Sets Us Apart?

Page 10: Gigl corporate presentation 4 15-14

Admission fee for play area access

Food and Beverages

Birthday parties & private rentals

Drop-off service

Alcohol (beer & wine)

Branded In-store and retail outlet

merchandising (licensing & merchandising

model)

U.S. and International Franchising

10

Multiple Revenue Streams

Page 11: Gigl corporate presentation 4 15-14

Westfield Mall – Century City, CA

Opened Dec. 2010 – “Flagship location” Annual run rate of $1.4 million in sales and $285,000 in EBITDA (21% net operating margin) 6,100 sq. ft. 24% of households with children¹ 21% of household income >$100k¹

Westfield Topanga Shopping Center – Canoga Park, CA

10-year lease signed – February 2012 Opened end of March 2013 5,900 sq. ft. 38% of households with children¹ 30% of household income >$100k¹

Glendale Galleria (General Growth) – Glendale, CA

10-year lease signed – February 2013 Slated to open October 2013 6,000 sq. ft. 47% of households with children 23% of household income >$100k

11

Where We Are Today…

¹Westfield February 2012 Demographic Report.

Page 12: Gigl corporate presentation 4 15-14

While fast food restaurants offer cheap food in cookie-cutter

buildings, themed restaurants offer a good meal, as well as an

experience.

In 2011, there were 19.5 million kids’ parties at restaurants.¹

NPD CREST research finds that kids are eating more healthful

food options than ever before.¹

Children five or younger are most likely to influence restaurant

visits.²

The average visitor stay at a family entertainment center is 2.5

hours, and they typically visit up to 6 times per year.³

Market Opportunity

1) The NPD Group, “Better Deals and More Sophisticated Palates Contribute to Kids Meal Declines.” May 22, 2012. 2) “The New American Diner Study,” by Restaurants & Institutions. August 2007. 3) Family Entertainment Center White Paper by JamVentures Management, 2010. 12

Page 13: Gigl corporate presentation 4 15-14

Backfill Southern California

market

Longer-Term Target markets:

Seattle, WA

Vancouver, B.C.

San Francisco, CA

East Coast

Evaluating multiple franchise

requests from around the U.S.

and the world

13

Expansion Goals

Page 14: Gigl corporate presentation 4 15-14

The Westfield Group is highly

interested in expanding Giggles N’

Hugs to all 55 of its U.S. mall locations

Offering to pay +60% of construction costs (i.e., “Tenant Allowance Dollars”)

Negotiating deals on a per-location basis

Also in discussions with other REITs

and major mall operators

Macerich Group (NYSE: MAC, $83B market cap): 62 regional shopping centers, 64M sq. ft. of gross leasable area

General Growth Properties (GGP): 135 property portfolio

The “Westfield Opportunity”

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Page 15: Gigl corporate presentation 4 15-14

Target:

High traffic, upscale retail centers & shopping malls

Lifestyle/entertainment centers

Areas with children under the age of 10

Empirical site selection model

Rigorous ROI review

Prototype: 6,000 sq. ft. & 150 seats

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Site Selection Strategy

Page 16: Gigl corporate presentation 4 15-14

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Planned New Store Rollout Schedule

2013 (A*) 2014 2015 2016 2017

Q1 1 (Topanga*) 0 2 3 4 Q2 0 1 2 3 4 Q3 0 1 3 3 4 Q4 1 1 1 2 4 Projected Cumulative Stores 3 6 14 25 41

Three Months Ended June 30, 2013 Topanga

Revenue $374,459

Total Cost & OP EX ($312,054)

EBITDA margin 16.666%

The following is a diagram of the expected nationwide new store rollout schedule for current year 2013 through the end of 2017. The flagship store in Century City has been in existence since December 2010.

The Topanga location showed solid results in its first quarter of operation. This is a testament to a well chosen location and the strength of the Giggles N’ Hugs brand.

Page 17: Gigl corporate presentation 4 15-14

Signed agreement with The Licensing Shop

(TLS) to extend the Giggles ‘N Hugs

restaurant experience into “on-brand”

products

TLS specializes in the strategic development

of consumer products

Expertise:

Extending brands into licensed products

Creating new revenue streams

Reaching new customers

17

Licensing & Merchandising Strategy

TLS Sample Clients

Page 18: Gigl corporate presentation 4 15-14

We plan to sell our branded merchandise in-store

as well as to top tier retail outlets

Further expansion opportunities into organic, high-quality clothing & food line

Top-tier retail targets – Nordstrom, Bloomingdales, Whole Foods, etc.

Examples:

Food products (i.e., Frozen Pizzas with Mom’s Tricky Treat Sauce, Mac N Cheese with Mom’s Tricky Treat Sauce and Chicken Littles with Flax Seed)

High-quality children’s apparel and accessories

Drink ware/snack cups (BPA Free)

Coloring books & stickers

Children’s Vitamin Water

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Multiple Retail Revenue Initiatives

Page 19: Gigl corporate presentation 4 15-14

Joey Parsi – Founder, President & Director

Founded GIGL in 2007

20+ year career on Wall Street

Lehman Brothers

Sutro & Co.

Investment advisor at TD Waterhouse (managed $350M+ in assets) & StockCross Financial Services

Sean Richards – COO

Joined GIGL in 2010

20+ Years of operations management experience.

Regional Director at Hootwinc, LLC (overseeing operations of 7 Hooters restaurants, 1 casino & 2 bars)

General Manager of The Viper Room & Pink Taco

General Manager of the House of Blues, Planet Hollywood & Hard Rock Café

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Management

Page 20: Gigl corporate presentation 4 15-14

Joan Barnes – Advisory Board Member

Joined GIGL August 2012

Co-founder and former CEO of Gymboree

Responsible for growing brand to 400 play centers

Sold company for$1.8 billion or ~20x revenue

Founder and former principle owner of YOGA STUDIO,

sold to Yoga Works in late 2008

Philip Gay, CPA – Advisory Board Member

+25 years experience operating restaurant concepts

Former president & CEO – Grill Concepts, Inc.

Former CFO – California Pizza Kitchen & Wolfgang Puck Food

CEO & COO – Diversified Food Group

Former CEO – Color Me Mine

Managing Director of Triple Enterprises

20

Advisory Board

Glenn Golenberg, CPA – Advisory Board Member

35 years of investment banking, private equity & financial restructuring experience

Co-founder and Managing Director of Golenberg & Company

Managing Director of Bellwether Group

Advisor to 200+ transactions & arranged financings in excess of $1 billion

Chairman and Director of numerous publicly and privately held companies and committees including The Finance Committee and Investment Committee of Cedars-Sinai Hospital

Executive board of the Wharton Graduate School of the University of Pennsylvania where he received his MBA

Page 21: Gigl corporate presentation 4 15-14

A pioneer concept in the children’s themed restaurant industry

Organic & nutritious menu with versatility and depth

Trained “aides” promote family-friendly feel

Multiple revenue drivers generate attractive store-level profitability

opportunities

Large mall operators have expressed keen interest in rolling out the

concept nationwide

21

Key Take-Aways

Page 22: Gigl corporate presentation 4 15-14

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Giggles N’ Hugs Contacts

Giggles N’ Hugs, Inc. 10250 Santa Monica Blvd., #155

Los Angeles, CA 90067 Tel (310) 553-4847

Company Contact Joey Parsi, Founder and CEO

Tel (310) 780-0770

Page 23: Gigl corporate presentation 4 15-14

Rated among best family & kid-friendly

restaurants by CitySearch and GoCityKids

Voted the #1 birthday party place in Los

Angeles by Nickelodeon

Voted “Best Pizza in Los Angeles” by

Nickelodeon

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Appendix: Awards & Accolades

“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, Gilt City Editor

Page 24: Gigl corporate presentation 4 15-14

“I am a big fan of Giggles. This indoor playground has

everything it takes for a great time: food, beer, wine, coffee,

cookies, delicious, healthy pizza, not greasy and thick. What

else do I need? Oh I forgot they also have complimentary wifi.

A big plus!” – 5/2/12

“I love this place and so do my kids. Having two little ones to

impress often makes it difficult unless you want to go to

Chucky Cheese LOL...this place is perfect and the food is very

good. Highly recommended.” – 5/15/12

“This place is wonderful! We had a great time when we went

to check it out. It's kid friendly. The staff was really nice. I'm

looking forward to different promotions they might have

coming up, including the Easter Brunch. I would highly

recommend this place to anyone I know with kids.” – 4/7/11

Appendix: What Our Customers Say…

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Children’s Menu Adult Menu

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Appendix: Organic & Nutritious Menus for Both Children & Adults

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Appendix: Some of Our Most Popular Menu Selections

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Offering Summary

Deal Size The maximum amount of the Offering is $3,000,000 ..

Securities Offered (each consisting of convertible debentures (the “Debentures”)

Coupon Seven percent (7%).

Debenture Conversion Price $0.37per Unit.

Exchange/Ticker OTCQB: GIGL

Selling Agents WestPark Capital, Inc., a FINRA Member Firm

Merriman Capital, Inc., a FINRA Member Firm

Use of Proceeds New store openings, marketing, and working capital.

*Important details regarding this offering can be found in the private placement memorandum.