According to official CDC data, childhood obesity has more
than doubled in the past three decades among children (it has tripled among
adolescents), and the portion of kids in the country aged six to eleven who are
obese, now stands at nearly 20 percent. Type 2 diabetes (often called
adult-onset diabetes), once virtually unheard of in people under the age of 30,
is now rising to such staggering prevalence among children and adolescents that
peer-reviewed medical journal Diabetes Care recently described it as an
emerging epidemic. Increasingly sedentary lifestyles among today’s children,
driven by factors like mounting screentime and further exacerbated by a diet
typically consisting of processed or junk foods that are laden with
high-fructose corn syrup or equally problematic chemical sweeteners, has
produced an extremely dangerous situation for many. And the cycle of unhealthy
choices all begins with eating and playing habits that are established when we
are young.
This fundamental problem is one of the driving forces behind
the creation of the Giggles N’ Hugs, Inc. (OTCQB: GIGL) brand of
family-friendly, upscale casual dining restaurants, which feature enormous
2,000 square-foot-plus children’s indoor playspaces, where kids under 10 can
run, jump, and play to their heart’s content. Backing up that serious
commitment to healthy exercise is an expertly crafted menu that is part
high-end, gluten-free, organic, locally sourced artistry, engineered to woo
parents back time and again – and part delicious kids meal foods that are
secretly packed full of healthy ingredients. By tricking kids into eating
healthy through clever culinary techniques, like pureeing vegetables that kids
otherwise stamp their feet about into a delicious and healthier pizza sauce, or
using other similar techniques, Giggles N’ Hugs has assembled a wow-factor menu
that will tantalize tykes, while allowing Mom and Dad to rest assured that they
are establishing good eating habits.
As the kids grow up, they will come to realize the
difference between the high-quality, organic, locally sourced pizza and other
foods they have been eating at Giggles N’ Hugs and the kind of fare they might
get from a Domino’s Pizza (NYSE: DPZ) or Yum! Brands’ (NYSE: YUM) Pizza Hut.
This subtle redefinition of a beloved kids dish like pizza, around a healthier
standard, is the kind of life lesson that will really stick with a kid as they
mature, impressing upon them that their favorite foods don’t have to be
unhealthy. More to the point, it will impress upon them the idea that healthy
food can be delicious and fun at the same time, allowing them to feel good
about healthy choices, and to more ably continue making healthy decisions on
their own. Moreover, the clear and direct association between healthy eating
and healthy play is made in such a natural way, it really sticks in the
subconscious.
More and more parents are tuning in to health consciousness
and demand is steadily increasing for precisely the kind of finely-tuned
concept Giggles N’ Hugs represents. As the company moves to franchise out
beyond its primary three locations in some of LA’s top shopping centers, a real
healthy option when it comes to someplace to take the little ones to eat could
soon be coming to towns all across America. Given that the company now offers
extremely affordable all-day passes starting at $6 a child and that the
locations are always staffed by highly-trained and professional employees who cater
to and even dote on the children, Giggles N’ Hugs is the perfect additional
venue for any mall or shopping center. Parents can drop the kids off to play
and get the shopping done, before returning to have a meal with their young
ones and returning home. It’s an appealing offer for busy moms, in particular,
and could become a popular nationwide option as the franchise proliferates.
Needless to say, the lease space and conditions the company
has access to as a result of its mall-enhancing profile are premium to say the
least, and that fact should help to facilitate rapid expansion once the model
starts to crop-out beyond LA. As it stands though, the company is already on
very solid footing, with its flagship location in Century City’s Westfield
Mall, and two other locations at the Glendale Galleria and Westfield Topanga
Shopping Center (Woodland Hills), doing exceptionally robust turnover business.
This is especially true when it comes to the themed birthday parties that the
company goes to great lengths over, with each party being tailored to the
individual boy or girl for whom it is thrown. Birthday parties have become a
revenue staple for the company and this is a growth market for GIGL, with a
best-in-class set of offerings for parents that pack more bang for the buck
than any competitor on the market today. And these parties come complete with
all the amenities, from gift bags, themed desserts, decorations, and the usual
assortment of fun activities, like karaoke, scavenger hunts, or arts and crafts,
which are available every day at Giggles N’ Hugs – to costumed staff playing
the part of the child’s favorite superhero.
The writing is on the wall when it comes to continued upside
for companies that are able to really tap in to the clean food trend and get a
stranglehold on the zeitgeist the way GIGL has. Not only has this company
essentially created the first organic, upscale casual dining restaurant that is
totally comfortable for both under 10’s and their parents, the company is in a
prime position to franchise its brand nationwide, and has the industry contacts
with the big shopping center owners which are needed to follow through.
This idea and the company itself are still small enough for
any investor to put down roots. It is a potential goldmine when you consider we
could be looking at the next McDonald’s (NYSE: MCD), especially since this is a
model you can really feel good about. Pretty safe to say there won’t be any
high profile PR disasters for GIGL about food quality to weigh down the share
price long-term, either.
Learn more by visiting www.gigglesnhugs.com
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