3. A pioneer concept in the family themed restaurant
industry with unique childrenā play space
Organic & nutritious menu with a high quality menu
items made from local, fresh foods
Trainedāaidesā 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
Overview
3
4. Family restaurant that addresses an unmet need for
high-quality, healthy food in a safe, themed
entertainment environment for children.
3 locations open. Century City (Dec 2010), Topanga
Plaza (March 2013) and Glendale Galleria (November
2013). Significant interest from the largest global mall
developers who have contributed significant cash and
rent concessions.
Our āprototypeā 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: $2,260,729, 2014: Approaching $4M
Who We Areā¦
4
5. Some of the Celebrity Clientele Generating
Positive Press Coverage
5
6. Recent āFreeā Press Coverage
Sampling of publications featuring stories on Giggles Nā Hugsā¦
7. 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.
Opened a third location in November 2013 in the Glendale Galleria Mall.
The current landlords, Westfield and General Growth Properties, have offered very favorable tenant
improvement concessions and landlord financing on existing leases and we are in active discussions on many
more locations in their malls throughout the USA.
Our History
7
8. Smile and befriend the guest at ALL times
Deliver delicious nutritious food
Sincere hospitality & service excellence
Cleanliness & safety
Creating magical moments
Mission: āTo satisfy every parentās need
for a restaurant that serves healthy,
delicious food and caters to their
children's experience as much as their
own.ā
Our Mission & Core Values
8
9. 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 āaidesā assist with childrenās
enjoyment while parents relax
Child drop-off service (while parents shop)
First and only restaurant to offer this
service in LA
What Sets Us Apart?
9
10. 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
Multiple Revenue Streams
10
11. Westfield Mallā Century City, CA
Opened Dec. 2010 ā āFlagship locationā
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 childrenĀ¹
21% of household income >$100kĀ¹
Westfield Topanga Shopping Centerā Canoga Park, CA
10-year lease signed ā February 2012
Opened end of March 2013
5,900 sq. ft.
38% of households with childrenĀ¹
30% of household income >$100kĀ¹
Glendale Galleria (General Growth) ā Glendale, CA
10-year lease signed ā February 2013
Opened November 2013
6,000 sq. ft.
47% of households with children
23% of household income >$100k
Where We Are Todayā¦
Ā¹Westfield February 2012 Demographic Report. 11
12. 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 kidsā parties at restaurants.Ā¹
NPD CREST research finds that kids are eating more healthful
food options than ever before.Ā¹
Children five or younger are most likely to influence restaurant
visits.Ā²
The average visitor stay at a family entertainment center is 2.5
hours, and they typically visit up to 6 times per year.Ā³
Market Opportunity
1) The NPD Group, āBetter Deals and More Sophisticated Palates Contribute to Kids Meal Declines.ā May 22, 2012.
2) āThe New American Diner Study,ā by Restaurants & Institutions. August 2007.
3) Family Entertainment Center White Paper by JamVentures Management, 2010. 12
13. 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
Expansion Goals
13
14. The Westfield Group is highly
interested in expanding Giggles Nā
Hugs to all 55 of its U.S. mall locations
Offering to pay +60% of construction
costs (i.e., āTenant Allowance Dollarsā)
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 āWestfield Opportunityā
14
15. 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
Site Selection Strategy
15
16. Planned New Store Rollout Schedule
2013 (A*) 2014 2015 2016 2017
Q1 1 (Topanga*) 0 0 1 1
Q2 0 0 0 1 1
Q3 0 0 1 1 1
Q4 1 0 1 0 1
Projected Cumulative Stores 3 3 5 8 12
The following is a diagram of the expected new store rollout schedule for current year 2013
through the end of 2017 (which is dependent on financing). The flagship store in Century City has
been in existence since December 2010.
16
17. Target Economics of a Single Store
The following analysis shows the
expected economics of an average
single store, based upon our 6,000
square foot, 150-seat prototype
within the target demographic. Based
on our ability to command tenant
improvement funds of $600,000 per
location, the payback period on a per
asset basis is projected to be
approximately two and a half years.
RETURN ON A NEW STORE IN ITS FIRST FOUR YEARS
YEAR 1 (A) YEAR 2 YEAR 3 YEAR 4
Revenue $1,743,000 $1,893,200 $1,983,000 $2,008,000
Same Store sales growth 9% 5% 2%
Costs ($1,415,020) ($1,518,937) ($1,576,274) ($1,570,670)
Store Net Profit $327,980 $374,262 $406,726 $437,330
Corporate Op. Costs ($50,000) ($50,000) ($50,000) ($50,000)
EBITDA $277,980 $324,262 $356,726 $387,330
% 15.9% 17.1% 17.9% 19.3%
Payback (Years) 2.5
INITIAL INVESTMENT
Build-Out Investment ($960,000)
Pre-Opening Expenses ($240,000)
Total Initial Investment ($1,200,000)
Tenant Improvement Funds $6000,000
Total Company Cost ($600,000)
A ā Based on first year of maturity
17
18. Signed agreement with The Licensing Shop
(TLS) to extend the Giggles āN Hugs
restaurant experience into āon-brandā
products
TLS specializes in the strategic development
of consumer products
Expertise:
Extending brands into licensed products
Creating new revenue streams
Reaching new customers
Licensing & Merchandising Strategy
TLS Sample Clients
18
19. 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 ā Nordstrom, Bloomingdales,
Whole Foods, etc.
Examples:
Food products (i.e., Frozen Pizzas with Momās
Tricky Treat Sauce, Mac N Cheese with Momās
Tricky Treat Sauce and Chicken Littles with Flax
Seed)
High-quality childrenās apparel and accessories
Drink ware/snack cups (BPA Free)
Coloring books & stickers
Childrenās Vitamin Water
Multiple Retail Revenue Initiatives
19
21. Joan Barnes ā 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 ā Advisory Board Member
+25 years experience operating restaurant concepts
Former president & CEO ā Grill Concepts, Inc.
Former CFO ā California Pizza Kitchen & Wolfgang Puck Food
CEO & COO ā Diversified Food Group
Former CEO ā Color Me Mine
Managing Director of Triple Enterprises
Advisory Board
Glenn Golenberg, CPA ā 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
21
22. A pioneer concept in the childrenās themed restaurant industry
Organic & nutritious menu with versatility and depth
Trainedāaidesā 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
Key Take-Aways
22
23. Giggles Nā Hugs Contacts
Giggles Nā 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
23
24. Rated among best family & kid-friendly
restaurants by CitySearch and GoCityKids
Voted the #1 birthday party place in Los
Angeles by Nickelodeon
Voted āBest Pizza in Los Angelesā by
Nickelodeon
Appendix: Awards & Accolades
āTreat your children like the stars they are with red-
carpet-worthy fun. Giggles āNā Hugs, Tinseltownās
favorite tot hotspot, is where playtime, healthy food
and happy families converge.ā ā L. Souris Hong-
Porretta, Gilt City Editor
24
25. āI 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!ā ā 5/2/12
āI 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.ā ā 5/15/12
āThis 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.ā ā 4/7/11
Appendix: What Our Customers Sayā¦
