Investor Presentation

July 2015

Important Cautions Regarding

Forward-Looking Statements

2OTCQB: GIGL

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.

Who We Are

3OTCQB: GIGL

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

Solves 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

4OTCQB: GIGL

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

Stock Basics

5OTCQB: GIGL

Recent Price $0.14

Market Cap $5.2M

Shares Outstanding 33.3M

Float 15.2M

Ave. Volume (3 mth) 22,516

*Data as of July 6, 2015

Experienced Senior Leadership

6OTCQB: GIGL

Joey ParsiFounder & Chief Executive Officer

John KaufmanInterim-President

Philip Gay, CPAChief Business Development Officer

Sean RichardsChief Operating Officer

Joan BarnesAdvisory Board

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

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?

7OTCQB: GIGL

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 drop-off

service in LA

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

8OTCQB: GIGL

Where We Are Today

9OTCQB: GIGL

Westfield Mall – Century City, CA

Opened Dec. 2010 – “Flagship location”

Annual run rate of $1.2 million in sales (up 15% over prior year)

6,100 sq. ft.

24% of households with children

21% of household income >$100k

Westfield Topanga Shopping Center – Canoga Park, CA

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

Glendale Galleria (General Growth) – Glendale, CA

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

Strategic Expansion Plans:

Company-Owned & Franchise Locations

10OTCQB: GIGL

San Francisco, CA

Seattle, WA

Vancouver, BC

East Coast

Expanding to 12 company-owned locations

by year-end 2017

Ongoing interest globally from large

multi-unit franchising operators and

individual franchisees

Licensing fees ($100Ks - $millions)

Royalties (2%-8% of gross sales)

Backfill Southern California

market, with longer-term

target markets including:

Major Mall Operator Support:

Rent Concessions & Up-Front Cash

11OTCQB: GIGL

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

Licensing & Merchandising Provide

Additional Revenue Drivers

12OTCQB: GIGL

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

Attractive Single-Store Economics

13OTCQB: GIGL

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

Site Selection Strategy

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

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)

14OTCQB: GIGL

$1.1$1.3

$2.3

$3.3

$0.0

$1.0

$2.0

$3.0

$4.0

2011 2012 2013 2014

31.6% CAGR

Same Store Sales Performance

Driving Positive Operating Income

15OTCQB: GIGL

$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

san

ds)

Quarterly

Revenue

Quarterly

Operating

Income(store-level)

Key Takeaways

16OTCQB: GIGL

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

Contact Us

17OTCQB: GIGL

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

Investor Relations ContactJon Cunningham, VP of IR

RedChip CompaniesTel (800) 733-2447 ext. 107

jon@redchip.com

Appendix: Awards & Accolades

18OTCQB: GIGL

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

“

Appendix: What Our Customers Say

19OTCQB: GIGL

“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:

Organic & Nutritious Menus for Adults

20OTCQB: GIGL

Appendix:

Organic & Nutritious Menus for Children

21OTCQB: GIGL

Appendix:

Some of Our Popular Menu Items

22OTCQB: GIGL