Share Structure https://www.otcmarkets.com/stock/GIGL/profile
Authorized Shares 1,125,000,000 a/o April 11, 2017
-Restricted 37,120,983 a/o April 5, 2017
-Unrestricted 96,601,268 a/o April 5, 2017
Los Angeles-based Giggles N' Hugs, Inc. (GIGL) is a first-of-its-kind, award-winning family restaurant and play space that combines organic gourmet food with the play elements for children in a 2500-square-foot play space in the middle of the restaurant. The concept is similar to Chuck E. Cheese, but offers a unique healthier, high-end version for health conscious parents and families. Parents eat and relax while the kids have an incredible time playing in the custom-made play area with giant climbers, dragons, castles, pirate ships slides and swings and a multitude of other toys.
In addition to nightly shows and concerts, every 30 minutes Giggles N' Hugs provides an activity such as face painting, disco dance parties, karaoke, games, arts and crafts, and much more. Giggles N' Hugs has been voted the No. 1 family restaurant, No. 1 birthday party place, and the No. 1 indoor play space in all of Los Angeles, and has attracted a star-studded list of customers including Sandra Bullock, Heidi Klum, Jessica Alba, Halle Berry, Jennifer Garner and Ben Affleck, Denis Quaid, Mark Whalberg, Adam Sandler, Dustin Hoffman and many more.
Revenue is derived from several sources, including food and beverage sales, beer and wine, birthday parties (40%), admission and membership fees to play, along with retail sales. These revenue-generating locations are also highly sought-after tenants. The company currently has three locations in the top premier malls around Los Angeles; four of the largest mall owners in the country are giving Giggles N' Hugs up to 75% discounts on rent and providing upward of $700,000 of upfront cash for each location to get Giggles N' Hugs into their malls around the country.
Growth and recognition of this caliber are driven by a very powerful management team. Giggles N' Hugs President John Kaufman was the COO at California Pizza Kitchen when the founders had just two locations. Joined by Giggles N' Hugs' CFO Phillip Gay, who at the time was CFO of California Kitchen, Kaufman grew the company from two to more than 100 locations – at which time it was bought by Pepsi Co. Kaufman was recruited as president of Koo Koo Roo Chicken, one of the fastest growing fast-casual concepts on the west coast, while Gay joined Wolfgang Puck Restaurants group as CFO, eventually becoming the CEO.
Giggles N' Hugs was founded as a truly "kid friendly" establishment catered specifically to the size, interests, and nutrition needs of children. Since opening its first Giggles N' Hugs in 2009, the company has received a steady stream of interest from more than 300 interested parties looking to expand the concept – via franchise or master licenses – in the U.S. as well globally in countries such as Germany, England, Dubai, Russia, Colombia, Australia , Singapore, Turkey, among the many more.
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- High Quality Organic Food
One-of-a-Kind in Niche Demographic
Entertainment & Party Functionality
Multiple Revenue Drivers
Increasing Financial Performance
Highly Trained, CPR-Certified Staff
Mall Operator Cooperation & Incentives
Voted the #1 birthday party place in Los Angeles by Nickelodeon
Voted "Best Pizza in Los Angeles" by Nickelodeon
Voted "Best Indoor Playspace" by Red Tricycle (redtri.com)
Listed best family & kid-friendly restaurants by CitySearch & GoCityKids
Giggles N' Hugs was founded to fill an unmet need for true "kid friendly" dining with high-quality healthy food options and a fun and themed entertaining environment. The result is the first- and only- of-its-kind restaurant with a sweeping menu of great tasting and organic food for both children and adults, as well as a variety of entertainment, catering and birthday party options.
Giggles believes the combination of fresh, organic and healthy ingredients prepared by quality chefs makes for a fantastic dining experience.
Food prepared by Giggles uses locally grown produce and organic ingredients when available. When it comes to meat, the company's beef comes from grass-fed, hormone/antibiotic-free cows and it uses only all-natural chicken. Breads are made fresh daily by local artisan bakeries who also use the finest ingredients available.
Giggles' cooks prepare all menu items from scratch daily to deliver the freshest meals possible, making all dressings, sauces and marinades in-house using fresh herbs and ingredients, and cooking only with trans-fat free canola oil and extra virgin olive oil when necessary. Delicious in-house desserts are also baked in house.
Adult menu items include a variety of appetizers, salads, pastas, entrees, paninis and sandwiches, specialty pizzas, custom pizzas, specialty burgers and custom burgers with gluten-free, vegetarian and non-dairy options. The kid's menu includes entrees, pasta, pizza and little bites, also with gluten-free, vegetarian and non-dairy options.
Giggles' extensive menu also features adult and kid's breakfast menus as well as smoothies and alcoholic beverages.
Giggle's award-winning, one-of-a-kind birthday parties are filled with nonstop excitement and exercise, set inside its dazzling 6,000 foot family restaurants and playspaces. When you throw a party at Giggles, every single detail is taken care of so the customer can enjoy the day completely, secure in the knowledge that an award-winning, professional staff is handling setup, cleanup, and everything in between.
Kids can choose from a variety of themes, including superhero themes for both boys and girls, princess themes, pirate and mermaid themes, cartoon pups themes, jungle themes, dinosaur themes, candyland themes, rock star themes, and so much more!
Birthday packages include all the workings of a good party, including food, beverages, fresh dessert, activities, return passes, themes and a large number of guests at an affordable price. Here's how Giggles' birthday parties stack up against other local venues:
Giggles N' Hugs is structured to benefit from multiple revenue drivers that generate attractive store-level profitability opportunities:
- Admission fee for play area access
Food and beverages
Birthday parties and private rentals
Child drop-off service
Beer and wine
Branded in-store and retail outlet merchandising via licensing and merchandising model
U.S. and international franchising
Giggles opened its first Giggles N' Hugs restaurant in Brentwood, California, in February 2008. The restaurant was an immediate success that enjoyed profitability and widespread media coverage.
Westfield approached the founders with an expansion proposal, including a possible nationwide rollout. In 2010, Giggles opened its second restaurant in the Westfield Century City Mall, with the mall agreeing to pay 60% of construction costs, with additional concessions. By 2011 reported revenues of $1.1 million. By 2013, the company reached sales of $2.3 million, and 2014 full-year revenue increased 48% to a record $3.3 million.
Today, Giggles has three locations with double-digit revenue growth. First-quarter 2015 revenues of $0.9 million were up 11.7% compared to the year prior. The company also decreased total costs and operating expenses by 6.9% year-over-year, and cut long-term liabilities 3.8% from year-end 2014 to $1.7 million.
Market Opportunity & Expansion Goals
Giggles has been featured in numerous popular media outlets, attesting to the company's growing brand recognition. This press coverage includes New York, People, Bloomberg Business Week, examiner.com, Entrepreneur, The Herald Sun, OK!, US Weekly and more. Further validated by its growing popularity and financial performance, Giggles has defined an expansion strategy inclusive of industry trends.
While fast food restaurants offer cheap food in cookie-cutter buildings, theme restaurants offer a good meal along with a unique experience. According to NPD CREST research, kids are eating more healthful food options than ever before, while other studies show that children aged five years or younger are most likely to influence restaurant visits.
The average visitor stay at a family entertainment center is 2.5 hours, and they typically visit up to six times per year.
Giggles also fills a significant unmet need in the market and addresses the top trends shaping the evolution of the broader restaurant industry. According to a year-end survey by the National Restaurant Association that polled more than 1,000 chefs across the U.S., these trends include locally-sourced meats, seafood, and produce, environmental sustainability, more natural ingredients, less processed foods, and healthier kid's meals.
Leveraging the above-mentioned and other industry drivers, Giggles and hugs has set forth a nationwide expansion strategy. The company's interest is shared by large mall operators who have expressed keen interest in rolling out the Giggles concept nationwide.
In addition to its California presence, Giggles is exploring longer-term target markets including Seattle, Washington, Vancouver, B.C., San Francisco, California, and the East Coast. Giggles is also evaluating multiple franchise requests from around the United States and the world.
Giggles is in negotiations with major mall owners in the country and has set a goal of expanding to 12 company-owned locations by the end of 2017, in addition to exploring franchise opportunities.
To execute its expansion goals, Giggles continues to strengthen its management team, most recently adding a new chief business development officer, as well as interim-president – both of which have impressive resumes in terms of driving growth with the California Pizza Kitchen chain.
Growth and recognition of this caliber are driven by a very powerful management team with the experience and know-how to continue the company's powerful momentum.
Joey Parsi, Founder, President, & Director
Joey Parsi had a long and successful career as an investment manager and entrepreneur. He had a 20+ year career working on Wall Street for Lehman Brothers, Sutro and Company, and Prudential Securities. Parsi previously served as an investment advisor for Lehman Brothers; senior vice president at Sutro and Company, where he managed and oversaw millions of dollars for individual and institutional investors specializing in IPOs and technology equities; and worked at Prudential Securities where he oversaw client assets in a number of investments.
In 1998, Parsi opened Barron Chase and was able to expand the company to more than 30 employees. In total, Parsi and his team raised more than $30 million in funding for nine separate companies, many of which are now publicly traded on the NASDAQ markets. After liquidating the business in 2001 he joined TD Waterhouse, where he personally managed more than $350 million in assets for clients, and oversaw more than $1 billion in assets in his region. Parsi then went on to found Giggles in 2008.
John Kaufman, President
John Kaufman was the COO at California Pizza Kitchen when the founders had just two locations and grew the company along with Philip Gay as CFO to over 100 locations. Pepsi Co. bought the pizza chain at this point, and Kaufman was recruited to become president of Koo Koo Roo Chicken, one of the fastest growing fast casual concepts on the west coast.
Philip Gay, CFO
Philip Gay was previously the CEO at the Daily Grill restaurant group, a publicly traded Restaurant concept with 50 locations throughout the country. Prior to that, Gay was CFO at California Pizza Kitchen, growing the concept along with John Kaufman as COO from two stores when he started to over 100 when he left after the company was sold to Pepsi Co. He joined Wolfgang Puck Restaurants group as CFO eventually becoming the CEO.
Sean Richards, COO
Sean Richards joined Giggles in 2010, bringing with him more than 20 years of operations management experience. He previously managed and ran operations for Pink Taco restaurants, Hard Rock, House of Blues and Hooters casino among other national brands.
Joan Barnes, Advisory Board Member
Joan Barnes is the founder and former CEO of Gymboree, which is the largest clothing retailer in the nation for kids. She has been instrumental in helping us with Giggles' merchandising and licensing which she in essence pioneered some 30 years ago when she licensed the Gymboree brand. With Barnes' help, Giggles is rolling out a variety of products for kids including, branded clothing, branded toys, frozen foods, and other merchandising products.
Todd Star, head of real estate expansion
Todd Star was senior executive VP for Westfield USA, overseeing its west coast leasing operations for 14 years. He is a strong asset to Giggles as he leads expansion negotiations with several of the largest mall owners in the U.S., including General Growth Properties, Simon Property Group, and Westfield Group, who collectively own more than 500 properties worldwide.
Giggles N' Hugs
10250 Santa Monica Blvd., #155
Los Angeles, CA 90067
(310) 553 – HUGS (4847)