A growing number of Americans today are eating healthier,
with a keen eye for locally-sourced, organically-grown ingredients, and this
has led to an unprecedented shift towards healthy, organic foods in the roughly
$709 billion in sales (National Restaurant Association’s 2015 Restaurant
Industry Forecast) restaurant and foodservice industry. And while fast casual
chains, which saw 11 percent sales growth the year before last overall,
continue to increasingly move towards healthier choices, there has yet to be
really big winners over on the $224 billion by 2018 (Euromonitor) full-service
side of the equation. With recent winners in the fast casual game like Panera
Bread’s (NASDAQ: PNRA) bakery-cafe locations and Noodles & Co. (NASDAQ:
NDLS), which features globally inspired noodle and pasta dishes, as well as
soups, salads and sandwiches, it is clear that organic choices and newly
rethought menus designed to cater to the health-conscious are now officially
big business in the restaurant industry.
Fusing a best-of-breed organic menu featuring fresh salads,
sandwiches, wraps, Panini’s, pizzas and pasta, as well as appetizers and
desserts, together with a Gymboree-like child play area that is full of
climbers, ball pits, castles, dragons, pirate ships, and fun tactile games to
play, is LA-based Giggles N’ Hugs, Inc. Designed as a family casual dining
restaurant and playspace targeting parents and their young children, Giggles N’
Hugs has the potential to develop into a household name brand that is
recognized by everyone, thanks to the deep bench of management talent, with
decades of collective experience spanning both the fast casual restaurant
sector, and child play area market. The concept and target market is simple to
grasp, but until now no one was really catering to the upscale kid party market
in dining with an organic restaurant concept, leaving the much sought after
high earner demographics to fend for themselves.
Organic casual dining for mom and dad, with a giant playroom
full of wonders for kids 1 to 12 to explore and play around in, getting good
exercise and being periodically entertained by events like arts and crafts,
puppet shows, or music. And the kids get to eat healthy, organic foods that
parents can feel good about. Health-conscious, organic food-buying parents know
that establishing healthy eating habits while young and associating healthy
eating with physical activity is a great way to prepare kids for a lifetime of
better living. Something which gives parents a huge incentive to come back
again and again.
Whether it’s for a play lunch, a chance for parents to
simply unwind with a drink while the kids play happily, or to leave the kids
where they can enjoy themselves safely in an expansive 2,500 square foot or
more play area. Under the watchful and attentive eye of trained “aides” who
assist with the children’s enjoyment, parents can feel easy as they take in the
consumer buffet of the numerous shops available in the mall or galleria where
the Giggles N’ Hugs location is present. Being able to shop in peace, secure in
the knowledge that the kids are happily playing and are safe is a godsend for
busy parents. This one factor of the company’s approach to the space could
drive sustained revenues to new levels amid a nationwide expansion.
This aspect of the business represents a significant asset
to mall owners, offering potential mall goers a service that enables their
overall experience mightily. This synergistic relationship between the nature
of the business and the location where a given venue is present gives GIGL
attractive expansion benefits, such as an on average 75 percent discount when
it comes to commercial space rental fees, and as much as $700,000 up-front cash
in some cases, enough to cover around half the build-out or site refurbish
needed to open a new location. The company has taken serious interest from
major mall operators throughout the country like Westfield Group, Macerich
Group, General Growth Properties, and even Simon Properties, the biggest of the
four, who collectively represent over 550 properties across the nation, each
with access to choice demographics.
With three initial locations in upscale LA malls (Century
City Mall, Glendale Galleria and the Topanga Canyon Mall) and plans to expand
nationwide already in the offing, a sumptuous organic menu might drive
customers in the doors, but it’s the kid-friendly amenities that will get
shoppers to come back for more. GIGL takes in revenue from all the usual
restaurant sources like food and beverage, as well as beer and wine, but gets
the added revenues from admission fees for the play area, membership fees
(one-month, three-month and six-months unlimited play) from regulars who get a
substantial discount with the membership, and themed parties (roughly 40
percent of revenues), which put those typical at competitors in the industry,
like Chuck E. Cheese, to shame.
At Giggles N’ Hugs, kids get organic food, drinks, a fresh
desert, a wide variety of engaging activities including games, dance parties,
puppet shows and music by professional entertainers, as well as return passes,
and the entire party can be from among a whole range of themes. Chuck E. Cheese
by comparison only offers Superhero and Princess themes, with two slices of
pizza per kid, drinks, video games, and a candy piñata for around the same $350
price tag. At Giggles N’ Hugs kids can choose from over eight different themes,
and the highly trained, CPR-certified staff really go out of their way to
ensure the quality of the experience.
Take a closer look, visit www.gigglesnhugs.com
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