Hotels in Guangzhou Face Food Safety Challenge

UNCLAS SECTION 01 OF 02 GUANGZHOU 001056 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ETRD ECON PGOV CH SUBJECT: Hotels in Guangzhou Face Food Safety Challenge ¶1. (U) SUMMARY: In order to meet international food safety standards, foreign luxury hotels in Guangzhou import many of their ingredients and supplies, and even perform their own testing. They work diligently to raise the practices of vendors, employees, and contractors to the quality levels that clients expect from international hotels. The hotels follow Hazard Analysis and Critical Control Points (HACCP) guidelines originally established in the United States and now observed internationally. END SUMMARY. Hotels Pay High Costs to Assure Safety -------------- -------------- ¶2. (SBU) Food safety concerns have created challenges for foreign luxury hotels in South China. Hotel managers at the Shangri-la, Westin, and The Ritz-Carlton here in Guangzhou tell us that they must assume more responsibility for food safety and quality than in other parts of the world. When reports arise regarding the safety of local goods, luxury hotels take few chances and import what they need. Chefs at the hotels have full authority to make any purchases necessary. ¶3. (SBU) Francoise J. Cnockaert, General Manager of the Guangzhou Ritz-Carlton (opening in November of 2007) expressed concern over difficulties in confirming the origins and proper handling of meat, poultry, and dairy products prior to arrival at the hotel. This was echoed by the Westin Hotel's Chef Michael Poutawa, who told us that his hotel imports almost all of its meat and shrimp from places with higher safety standards like Australia, Brazil, and Hong Kong. Its Oysters are brought in exclusively from New Zealand. He noted that Inner Mongolia, which produces some organic products, is also a source for certain goods. Poutawa also expressed concern about local vegetables. The hotel uses separate containers for their transport and special cleaning solutions to wash them. ¶4. (U) Some of the supplies needed to comply with international food handling standards must also be imported. The hotels follow Hazard Analysis and Critical Control Points (HACCP) guidelines originally established in the United States and now observed internationally. In order to meet the standards, hotels in Guangzhou have to import expensive special colored labels used to tag, date, and monitor almost all food in the hotels. These special, hard-to-remove stickers are placed on the vacuum sealed plastic bags. Removal of the stickers damages the bag, making it difficult to change dates on items without being detected. The Lengths to Which They Go -------------- ¶5. (SBU) Many Guangzhou luxury hotels work diligently to reduce risks from the local supply chain. The Ritz-Carlton plans to formally conduct its own random food sampling, testing, and analysis according to their individual corporate standards. The hotel reportedly has an on-site laboratory where food will be tested for bacterial growth. While none have yet gone as far as to inspect their supplier's facilities, one hotel mentioned plans for doing so in the future. Sharing Information -------------- ¶6. (SBU) Until local standards rise, surviving in this market requires informal collaboration and trust. Westin's Chef Poutawa reports that he must leverage personal relationships with reputable suppliers and other hotel managers to ensure quality and food safety for his clients. In an environment where it is not feasible to know completely the sanitation conditions or refrigeration history of all of the food before delivery, managers must trust their suppliers to a large degree. A strong network among hotels and restaurants also helps identify unreliable suppliers. Purchasing managers maintain a list of certified suppliers; if sub-par products are discovered, or a patron becomes ill due to food contamination, word spreads quickly, and the supplier is effectively blacklisted. Competition Among Chefs Raises the Bar -------------- ¶7. (SBU) Despite the tight networks, Cnockaert, who has hotel management experience in Jakarta, Seoul, and Osaka, commented that competition among the hotel's acclaimed chefs contributes to high standards and food safety. Each chef uses his or her own personal judgment because the quality and safety of their cuisine is not just business -- it's highly personal and one's reputation rests upon performance. Educating Vendors, Employees and Contractors -------------- GUANGZHOU 00001056 002 OF 002 ¶8. (SBU) The Westin's Poutawa told us he has had to educate potential vendors and suppliers of meats, vegetables, or other food products on proper handling, sanitation, and refrigeration. He rejects shipments when his requirements aren't met. One hotel required a particular vendor to purchase separate containers for transporting the hotel's food and set cleaning standards for those containers. Another hotel insisted that a vendor purchase refrigerated vehicles. ¶9. (SBU) Hotel managers report many challenges in ensuring that their own staff follows proper food safety practices. The Shangri-La's Director of Marketing Jorgen Christensen, said staff training is a major expense for the hotel both in direct costs and employee hours. One hotel manager acknowledged that the failure of staff to follow proper procedures had caused the hotel to receive a significantly reduced score in a recent audit of its compliance with HACCP standards. The manager mentioned that while the need for improvement persists, he is confident that further training will be effective in ensuring proper practices are followed. ¶10. (SBU) The Westin's Poutawa emphasized that the need for vigilance on standards extended beyond staff and suppliers of food products. When he was involved in construction of the hotel in 2005, he had ordered work redone to correct critical problems. In one case, contractors had left a 1/4-1/2 inch spaces in the floor and ceiling moldings that could have allowed dangerous and unsightly mold to grow. In addition, Poutawa described how cost cutting modifications were made without his authorization. For example, instead of importing the specialty refrigeration cases he had requested, his local contractor ordered Chinese manufactured ones. The contractor did not understand why he would want to spend so much money on an imported model when the "same" product could be purchased much cheaper locally. These failures to meet standards resulted in delays and frustration for both sides. GOLDBERG