Giggles N Hugs Inc (OTCMKTS:GIGL) Continues To Run On Smart Strategy Execution

At the beginning of March, we looked at California based restaurant play Giggles N Hugs Inc (OTCMKTS:GIGL) as part of this coverage. The company is one that we'd looked at a couple of times prior to our March focus, and one that we've previously highlighted as something of a rarity in the penny stock space – a play that has what looks to be some really solid fundamentals, strong growth potential and a valuation rooted in current metrics, as opposed to forward potential.The keystone of the bull thesis was execution on a growth strategy, and the early March coverage highlighted the on-boarding of a fitness celebrity called Jillian Michaels as a brand ambassador. Well, Giggles N Hugs just announced a fresh on-boarding, and in doing so, has offered up some real insight into how it's looking to fuel said expansion strategy.Before we get into the announcement, and what it says about the company's plans going forward, here's a quick intro.Giggles N Hugs is a restaurant stock, as mentioned above, but it's a restaurant stock with a difference. The company has developed a concept that fuses entertainment (for both adults and children, but primarily focused on the children) with a healthy eating environment. Basically, it's a food joint that serves a menu of healthy but tasty meals to kids, while the kids watch things like magic shows, puppet shows, get their face painted, all that sort of fun stuff. Each location has a schedule available online, and parents can time visits to coincide with the sort of entertainment their kids enjoy.This sort of thing has been done before, sort of. What makes Giggles N Hugs different isn’t just the healthy food angle, but the branding it's managed to cultivate. The company attracts A-list superstar parents, and it leverages this sort of attention to help it build a reputation on the West coast. People like Sandra Bullock, Heidi Klum, Jessica Alba, Halle Berry, and Jennifer Garner have taken their kids to the LA locations for birthdays. And here's a key point – it's cheap. A birthday event for kids costs less than it would at Chuck E. Cheese and McDonald's Corporation (NYSE:MCD), yet the company is still attracting the household names.For us, the ability of a standard income parent to hold the same birthday event for their children as an A-lister holds for theirs is a real draw, and one that Giggles N Hugs could expand rapidly by capitalizing on.Which brings us to the latest release.The company just announced that it's brought on Tia Mowry as a brand ambassador, in a deal that, superficially, at least, mirrors that which saw it on-board Jillian Michaels earlier this month. These are celebrities that take their kids to the locations, and now they are being paid to tell everyone that they do just that.Mowry has more than 10 million social media followers, of which a huge portion is no doubt comprised of exactly the kind of person Giggles N Hugs wants to get through its doors. As we noted last time, Michaels has around 5 million. That's 15 million potential customers that have elected to hear what these social influencers have to say, and that will now be hearing about the great time the people they follow (and their kids) are having at Giggles N Hugs.So what does this tell us about the expansion strategy?That it's all about branding, and smart allocation. This is the sort of company that's going to grow on word of mouth advertising, and through brand recognition, and with these sorts of smart pick ambassadors, Giggles N Hugs is showing markets that it recognizes this fact, and knows how to kick start it.As we've mentioned in the past, the primary risk with an exposure at this stage is one of dilution. The company doesn't have a lot of cash on hand, and it's going to need more if it's to execute on the aggressive location-opening strategy that it outlines in its corporate presentation. That said, it's up more than 860% since we first highlighted it as one to watch, and if it can maintain this run, dilution shouldn’t be overly prohibitive to an exposure.We will be updating our subscribers as soon as we know more. For the latest updates on GIGL, sign up below!Disclosure: We have no position in any of the securities mentioned and have not been compensated for this article.