So we have several completely unrelated businesses that we lease space out to from the warehouse to make sure that we’re still getting as much bang for our buck out of the space as we can. So there have been — sometimes we manage products for consumer packaged goods companies. You need to stage products between production runs, there’s even a solar company that we do business with, that we warehouse their product and they sort of stage it all out of our warehouse. So, we find ways to make sure we’re getting full utilization of our assets. But the nice thing about owning the building is it gives us flexibility, right? So, when we design our go-forward plan and continue to evolve our business model, we’ll have that space ready to go to utilize however we need to for our strategy.
So a few thoughts on the Pennsylvania warehouse. As far as margins, it’s definitely something we’re talking about. I know it would be helpful for investors to see the breakout of the two businesses. So, we’ll I’m going to punt that as we continue to think about it, but it’s definitely a valid question.
Bill Bennett: Ronit, I got one other anonymous question here. Do you expect calendar 2024 to be a growth year for the specialty food service business? Definitely mine answer that. If you look at — if you look at the — if you segment out the foodservice business across our various customers and pieces today, we’re seeing very nice growth in several different areas of food service. And as we sort of lap — like I mentioned from some of those headwinds that we’re facing this year, we expect to be back on a growth trajectory next year. I mean I think the — that’s where our operating profit is going to come from going forward, right? You’re going to see us focus a lot more on food service than we have historically. And that’s really the play, right?
It’s how do you grow foodservice, which is a profitable business and then manage our e-commerce business manage the losses of our e-commerce business to get back to flat. If we can do both of those things, we will see dramatic impacts to operating income going forward. All right. Quite good today. Awesome attendance. I’m so excited that so many people joined our call this morning. I had one more anonymous question and then Ronit if we don’t see another hands, and we call it a day there.
Ronit Wallerstein: The question here was Gate Gourmet has been a great case study on how a new business can scale. How many more partners are out there like this? How do you plan on getting them? And how does that scale with the asset-light nature of the specialty food service platform? Yes, it’s why I called it out. We’re so excited about the relationship we’ve built with Gate Gourmet. And we think the platform we’ve built has value to a tremendous number of retailers, distributors, a whole host of customers across the country. And when you hear us talk about our longer term strategy later this year, you’ll see a very intentional focus on adding customers to the specialty food service business. The comment on asset lite, I love.
It’s — if you look at how we run this business, the majority of our specialty food service business, we don’t even own the inventory, right? It’s — the value we add is in connecting hundreds of small vendors who would otherwise not be doing business with a big distributor. We connect them into a single pipeline of product and inventory and item information to these distributors so that the distributors have to deal with 500 different vendors, right? The — that’s a valuable service that we provide. And it means that as we add customers and as we add sales to the food service business, it scales almost indefinitely without additional assets. Really, the only expenses that get added as we grow those businesses are in salespeople and customer service, but those scale very nicely compared to the margins that we make on the foodservice side of the business.
