Tuesday, August 11, 2015

Giggles N’ Hugs, Inc. (GIGL) in Talks with National Mall Owners to Discuss Expansion

Giggles N’ Hugs, owner and operator of family-friendly restaurants that bring together high-end, organic food with active, cutting-edge play and entertainment for children, today reports that it has been in active negotiations for its expansion with several of the largest mall owners in the U.S., including General Growth Properties, Simon Property Group, and Westfield Group, which collectively own more than 500 properties worldwide.

Current negotiations are focused on expanding Giggles N’ Hugs’ presence on the West Coast, initially targeting five properties in markets that include Seattle and San Francisco in the north and San Diego and Orange County in the south. Lease terms have been received for the proposed properties, which will be similar in size to the company’s current locations in Los Angeles.

The company also plans on expanding its footprint nationwide. Longer term and pending additional funding, Giggles N’ Hugs expects to grow from its three existing locations in Southern California to dozens of locations in key markets across the nation.

As part of its negotiations, Giggles N’ Hugs is seeking significant rent discounts and attractive tenant allowances to reduce construction costs for each new Giggles N’ Hugs location. The company has also retained the services of Todd Star, a highly regarded and successful senior executive with nearly three decades of real estate industry experience, to aid in its negotiations and growth strategy development. Star’s experience as a senior executive for Westfield, overseeing leasing operations for over 13 years, places him as one of the most knowledgeable and best in negotiating deals with mall operators. Todd currently serves as principal at Star Retail Advisors.

“We’re very excited to enter our next phase of operations and to begin replicating the success we’ve experienced with our first three locations in Los Angeles,” commented Giggles N’ Hugs CEO Joey Parsi. “While we’re doing good in Southern California, where we’re known for our warm weather and sunny climate, we anticipate our results will be even better in markets where the weather is often less than ideal.”

Parsi noted an increase in Giggles N’ Hugs traffics when it rains and how that advantage will fare well in locations with frequent precipitation.

“When it rains … people tend to come indoors to Giggles N’ Hugs to play rather than go to the park or other outdoor spaces. The same is true with birthday parties, which are a very high-margin business for us,” he said. “People can’t do parties in their backyard or a park when it rains, so we get massive bookings on rainy days and our sales spike. This unique aspect of our business should produce higher revenues and profit margins in markets like San Francisco and Seattle, driving strong shareholder value growth as we move forward with our expansion.”

For more information, visit www.gigglesnhugs.com/investor-relations/

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