OTCQB: GIGL

Corporate PresentationFebruary 17, 2015

www.gigglesnhugs.com

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.

Important Cautions Regarding Forward-Looking Statements

© 2015 Giggles N’ Hugs, Inc. – All Rights Reserved2

A pioneer concept in the family-themed restaurant industry with unique children’s play space

Organic & nutritious menu with high quality 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

Revenues: 2011: $1.1M, 2012: $1.3M, 2013: $2.3M, 2014(e): $3.5M

Overview

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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 “prototype” has been met with significant patron adoption, good profit margins, and widespread media coverage.

Who We Are…

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Some of the Celebrity Clientele Generating Positive Press Coverage

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Recent “Free” Press Coverage

Sampling of publications featuring stories on Giggles N’ Hugs…

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 for an expansion proposal, including possible nationwide rollout.

In 2010, opened restaurant in the Westfield Century City Mall, with Westfield agreeing to pay 60% of construction costs, with additional concessions.

Opened a location in March 2013 in the Westfield Topanga Shopping Center.

Opened a 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 US.

Our History

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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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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

What Sets Us Apart?

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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 FranchisingInterest from 100s of people/organizations globally

Multiple Revenue Streams

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Westfield Mall – Century City, CAOpened 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 children¹21% of household income >$100k¹

Westfield Topanga Shopping Center – Canoga Park, CA10-year lease signed – February 2012Opened end of March 20135,900 sq. ft.38% of households with children¹30% of household income >$100k¹

Glendale Galleria (General Growth) – Glendale, CA10-year lease signed – February 2013Opened November 20136,000 sq. ft.47% of households with children23% of household income >$100k

Where We Are Today…

¹Westfield February 2012 Demographic Report. 11

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

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

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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

Todd Star – former Westfield senior executive; spearheading negotiations

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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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

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Planned New Store Rollout Schedule

2013 (A*) 2014 2015 2016 2017

Q1 1 (Topanga*) 0 0 1 1Q2 0 0 0 1 1Q3 0 0 1 1 1Q4 1 0 1 0 1Projected Cumulative Stores 3 3 5 8 12

The following is a diagram of the expected new store rollout schedule for current year 2013through the end of 2017 (which is dependent on financing). The flagship store in Century City hasbeen in existence since December 2010.

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Target Economics of a Single Store

The following analysis shows theexpected economics of an averagesingle store, based upon our 6,000square foot, 150-seat prototypewithin the target demographic. Basedon our ability to command tenantimprovement funds of $600,000 perlocation, the payback period on a perasset basis is projected to beapproximately 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 $600,000

Total Company Cost ($600,000)

A – Based on first year of maturity

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The Franchise Opportunity

Extensive ongoing interest from:Large multi-unit franchising operators

Small individual franchisees

Global reach:Nearly every major city across U.S./Canada

Europe

Latin America

Middle East

Asia

Australia

Generate licensing fees ($100Ks to $-millions) and ongoing royalties (2%-8% of gross sales)

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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

Licensing & Merchandising Strategy

TLS Sample Clients

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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

Multiple Retail Revenue Initiatives

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$1.1 $1.3

$2.3

$3.5

$0

$1

$2

$3

$4

$5

2011 2012 2013 2014e

Revenue (in millions)

$636

$822 $825$913

($42) ($30) ($30)

$41

($200)

$0

$200

$400

$600

$800

$1,000

Dec

31,

201

3

Ma

r 30,

201

4

June

30,

201

4

Sept

30,

201

4

Revenue Restaurant op. income

Quarterly Revenue Growth (in thousands)

John Kaufman – interim President

Former COO of California Pizza Kitchen

Grew from two locations to 70+ and sale to Pepsico

Former President/COO of Koo Koo Roo

33 years of restaurant industry experience

Sean Richards – COO

Joined Giggles N’ Hugs 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

Management

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Philip Gay, CPA – Chief Business Development Officer

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

Joey Parsi – Founder & Director

Founded Giggles N’ Hugs in 2007

20+ year career on Wall Street Lehman Brothers

Sutro & Co.

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

Management

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

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

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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

Key Take-Aways

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Giggles N’ Hugs Contacts

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

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

Company ContactJoey Parsi, Founder and CEO

Tel (310) 780-0770

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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

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

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“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…

Children’s MenuAdult Menu

Appendix: Organic & Nutritious Menus for Both Children & Adults

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Appendix: Some of Our Most Popular Menu Selections

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Appendix: Valencia Floor Plan

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Appendix: Topanga Floor Plan

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