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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