‘HoReCa Channel Contributes 80-85% of Real Good Chicken’s Revenue’ : Abhay Parnerkar, CEO, Godrej Tyson Foods

In the dynamic landscape of the hospitality industry, where quality and partnerships are paramount, Real Good Chicken, a brand under Godrej Tyson Foods Limited (GTFL), has emerged as a pivotal player in the HoReCa segment. Asmita Mukherjee had a conversation with Abhay Parnerkar, CEO of Godrej Tyson Foods, to gain insights into the brand’s remarkable journey within the B2B hospitality sector.

Can you give us an overview of the poultry business under the brand Real Good Chicken? How has it positioned itself in the processed poultry and frozen food category?

Godrej Tyson Foods Limited (GTFL) is engaged in the manufacturing of processed poultry and vegetarian products through its brands ‘Real Good Chicken’ and ‘Yummiez’. Launched in 1999, ‘Real Good Chicken has quickly carved a niche for itself by providing high-quality chicken products, earning consumer trust and loyalty. Real good chicken was strategically positioned across regions, demonstrating its supremacy in both B2C and B2B segments. Real Good Chicken contributes around 40-45% to the overall GTFL revenue out of which 80-85% is from the food service of HoReCa channel.

Today, Real Good Chicken has a retail presence as well as it supplies to HoReCa channel across the country. Real Good Chicken is known for best-in-class practices from Farm-to-Fork ensures that the chicken on offer is high protein, tender and juicier which can then be bought in various shapes and forms including whole pre-cut, curry cut, drumsticks, legs, kheema, lollipop, soup pieces, breast boneless and whole chicken.

Real Good Chicken has a significant presence in HoReCa networks. Can you share insights into the brand’s market leadership in multiple cities across various channels?

Real Good Chicken caters to over 500 entities in HoReCa space.  The brand success is anchored in its alliances with industry giants such as KFC, McDonalds, Taj, Marriott, Compass, Taj Sats, among others. Within HoReCa, Quick Service Restaurant (QSR) chains is the largest customers base for Real Good Chicken. In essence, Real Good Chicken’s leadership in HoReCa category is a culmination of its expansive reach, exceptional quality, and strategic collaborations.

This year has been remarkable for Godrej Tyson Foods Limited, with the achievement of crossing INR 1,000 Crore sales turnover for the first time in FY 2022-23. What contributed to this exceptional growth, and what were the key factors driving the topline growth of 28%?

FY 2022-23 has been one of the best years in terms of financial and operational performance for GTFL as the business reported a stellar topline growth of 28% for the second consecutive year as a result of robust volume performance in branded categories. Several new launches across branded categories coupled with renewed focus on brand-building and channel expansion yielded positive results. Amongst branded categories, Real Good Chicken (RGC) registered a volume growth of more than 50% for the second straight year on the back of QSR and Institutional sales.

Real Good Chicken registered an impressive volume growth of more than 50% for the second straight year, with a particular boost from QSR and Institutional sales. Could you elaborate on the strategies that led to this significant increase in volume?

This is a testament to the company’s strong focus on innovation, distribution, and marketing. In addition to these, sales to HoReCa channel, which constitutes a significant share of overall demand in Real Good Chicken category, were upbeat with strong momentum in out-of-home consumption. GTFL has a strong focus on product development, and it is constantly working to create new and innovative products that appeal to consumers.

How has the out-of-home consumption impacted momentum played a role in driving demand in HoReCa category?

As pandemic restrictions gradually eased, the out-of-home dining landscape experienced a significant resurgence in demand, a trend that played a pivotal role in propelling Real Good Chicken (RGC) within the HoReCa sector. The constraints of lockdowns led to a palpable pent-up desire for the sensory delights of restaurant-quality dining. With the reopening of restaurants and cafes, this pent-up demand translated into a palpable eagerness among consumers to relish delectable chicken-based dishes, consequently boosting Real Good Chicken appeal. The daily usage and adoption of food delivery platforms initially triggered by the pandemic, has sustained as a habit. This has further amplified Real Good Chicken’s accessibility, allowing consumers to enjoy their favorite chicken products from the comfort of their homes. Chicken’s enduring popularity as a favored protein choice in India positions the brand well for sustained growth. Real Good Chicken presence in HoReCa establishments perfectly aligns with this trend, driving its increasing demand and affirming its enduring prominence in the market. 

Can you provide insights into the current and future expansion plans for the HoReCa channel?

We are keen to explore and expand North India markets in two ways – Real Good Chicken and the second with the growing and ever-expanding Godrej Yummiez product line.


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