OTCQB: GIGL

Investor Presentation July 2015

Important Cautions Regarding Forward-Looking Statements

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.

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Who We Are…

Family restaurant and play space

Healthier, high-end version of Chuck E Cheese

Unique in the market place / First-of-a-kind family restaurant

Brings together organic gourmet food with play elements for children

Solution to unmet need in family dining

Parents get to eat and relax

Kids get an incredible time playing in custom 2500 sq. ft. play area:

Climbers

Dragons

Castles

Pirate ships

Swings

And more

Business Basics

Three locations in high-profile malls in LA

Expanding to 12 company-owned locations by end of 2017

Support from large mall operators

Average 75% rent discounts

$500K-$700K up-front cash (covers 50%+ of build-out)

Interest from franchisees globally

Celebrity clientele and national media coverage

Strong financial performance

Revenue up 48% in 2014

1Q15 vs 1Q14: revenue up 12%; costs down 7%

Current assets up 41%; long-term liabilities down 14% at

year-end 2014

Multiple revenue drivers generate attractive store-level

profitability opportunities

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Stock Basics

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Recent Price $0.14

Market Cap $5.2M

Shares Outstanding 33.3M

Float 15.2M

Ave. Volume (3 mth) 22,516

Experienced Senior Leadership

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Joey Parsi Founder & Chief Executive Officer

John Kaufman Interim-President

Philip Gay, CPA Chief Business Development Officer

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

25+ years of restaurant industry experience

Experienced Senior Leadership

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Sean Richards Chief Operating Officer

Joan Barnes Advisory Board

20+ Years of operations management experience

Regional Director at Hootwinc, LLC (operated 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

Joined Giggles N’ Hugs in 2010

Co-founder and former CEO of Gymboree

Grew brand to 400 play centers

Sold for $1.8 billion (~20x revenue)

Founder of YOGA STUDIO, sold to Yoga Works in late 2008

Joined Giggles N’ Hugs in 2012

What Sets Us Apart? 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

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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.

Celebrity Clientele & National Media Coverage

Gwen Stefani and Gavin Rossdale take their boys, Kingston and Zuma to Giggles N’ Hungs in Los Angeles on Sunday (march 6).

Jennifer Hudson and her son David played at Giggles N’ Hungs in LA before having an early dinner together.

Adam and Sadie Sandler at Giggles N’ Hungs

Ben Affleck taking Violet to Giggles N’ Hungs

Halle Berry and Nahla leaving Giggles N’ Hungs in Los Angeles

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VIDEO

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Where We Are Today

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 children 21% of household income >$100k

10-year lease signed February 2012 Opened end of March 2013 Annual run rate of $1.1 million in sales (up 4.3% YTD) 5,900 sq. ft. 38% of households with children 30% of household income >$100k

10-year lease signed February 2013 Opened November 2013 Annual run rate of $1.4 million in sales (up 16.9% YTD) 6,000 sq. ft. 47% of households with children 23% of household income >$100k

Westfield Mall – Century City, CA Westfield Topanga Shopping Center – Canoga Park, CA

Glendale Galleria (General Growth) – Glendale, CA

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Strategic Expansion Plans: Company-Owned & Franchise Locations

Expanding to 12 company-owned locations

by year-end 2017

Backfill Southern California market, with

longer-term target markets including:

San Francisco, CA

Seattle, WA

Vancouver, BC

East Coast

Ongoing interest globally from large multi-

unit franchising operators and individual

franchisees

Licensing fees ($100Ks - $millions)

Royalties (2%-8% of gross sales)

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Major Mall Operator Support: Rent Concessions & Up-Front Cash

Strong interest from major mall operators

Westfield Group (55 properties)

Macerich Group (62 properties)

General Growth Properties (135 properties)

Simon Properties (300+ properties)

GIGL drives traffic to mall properties; mall owners/operators

offering significant concessions & allowances:

Average 75% discount on rent

$500K-$700K up-front cash (covers 50% of build-out)

Todd Star, former Westfield senior executive, spearheading

negotiations with mall operators

Negotiating deals on per-location basis

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Licensing & Merchandising Provide Additional Revenue Drivers Agreement with The Licensing Shop (TLS) to extend the Giggles N’ Hugs experience into “on-brand” products TLS specializes in the strategic development of consumer products; expertise includes: Extending brands into licensed products Creating new revenue streams Reaching new customers

TLC clients include:

Plan to sell branded merchandise in-store as well as to 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, 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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Attractive Single-Store Economics

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Site Selection Strategy Target: High-traffic, upscale retail centers &

shopping malls Lifestyle/entertainment centers Areas with children under the age of 10

TLC clients include: Empirical site selection model Rigorous ROI review Prototype: 6,000 sq. ft. & 150 seats

Initial Investment:

Build-Out $960,000

Pre-Opening Expenses +$240,000

Total Initial Investment $1,200,000

Tenant Improvement Funds -$600,000

Total Company Cost $600,000

Achieve Payback in 2.5 Years

(in thousands)

YEAR 1 YEAR 2 YEAR 3 YEAR 4

Revenue $1,743 $1,893 $1,983 $2,008

SSS Growth n/a 9% 5% 2%

Costs ($1,415) ($1,519) ($1,576) ($1,571)

Store Net Profit $328 $374 $407 $437

Corporate Op. Costs ($50) ($50) ($50) ($50)

EBITDA $278 $324 $357 $387

EBITDA % 15.9% 17.1% 17.9% 19.3%

Track Record of Revenue Growth (in millions)

$1.1 $1.3

$2.3

$3.3

$0

$1

$2

$3

$4

2011 2012 2013 2014

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31.6% CAGR

Same Store Sales Performance Driving Positive Operating Income

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17

$636 $822 $825 $913

$781 $918

$0

$250

$500

$750

$1,000

Dec 3

1, 2

01

3

Mar 3

0, 2

01

4

Jun

e 30

, 20

14

Sept 3

0, 2

014

Dec 3

1, 2

01

4

Mar 3

0, 2

01

5

-$42 -$30 -$30

$41 $37 $62

($50)

($25)

$0

$25

$50

$75

(in th

ou

sand

s)

Quarterly Revenue

Quarterly Operating

Income (store-level)

Key Take-Aways First-of-its-kind family restaurant and play space

Addresses unmet consumer need Expanding to 12 company-owned locations by year-end 2017 Strong interest from franchisees globally

Experienced management team

California Pizza Kitchen, Koo Koo Roo, Wolfgang Puck

Foods, Gymboree, Color Me Mine, etc.

Significant interest/support from major mall operators

Rent concessions (75%) and tenant allowances

($500k-$700K) offset 50% or more of per location start-up

costs

Proven ability to deliver financial performance

2014 revenue up 48% YoY

31.6% CAGR (2011-2014)

Multiple revenue drivers

Food, beverage, private parties, merchandise, etc.

Attractive store-level profitability opportunities

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Contact Us

Giggles N’ Hugs, Inc.

10250 Santa Monica Blvd. #155

Los Angeles, CA 90067

Tel: (310) 553-4847

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Investor Relations Contact Jon Cunningham, VP of IR

RedChip Companies Tel (800) 733-2447 ext. 107

jon@redchip.com

Appendix: Awards & Accolades

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

“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

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Appendix: What Our Customers Say

“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

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Appendix: Organic & Nutritious Menus for Adults

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Appendix: Organic & Nutritious Menus for Children

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Appendix: Some of Our Popular Menu Items

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