Dirk Locascio : I’ll come back to where Dave talked about earlier in his comments on this is, while we’re pleased with this, we’re seeing productivity improvement in both warehouse and delivery. So they’re both contributors. They each have impacts on, yes, on fuel, on routing, et cetera, and they each contribute. So without parsing out the individual, I think the more important takeaway is when we think upstream on the retention of the turnover, et cetera, seeing the improvement, and that’s leading to overall lower cost per case and that’s demonstrating what we’re doing is working, and we expect to do more of that.
Operator: And your next question comes from the line of Jake Bartlett from Truist Securities.
Jake Bartlett : My question is about gross profit per case and the ability to maintain that. And you understand that protein in center-of-the-plate are generally priced on a dollar markup, so the deflation doesn’t impact it. But my question is whether that could allow for greater price competition? So it seems to be the biggest risk is that competitors try to drive business more with price than service levels as they have over the last few years. So how would you assess that risk? Are you seeing any kind of more aggressive pricing out there? How do you expect to approach pricing going forward?
David Flitman : Overall, we feel good about the durability of our gross profit. I think for the last few quarters, we’ve been asked how we thought we would fare with lapping large inflation a year ago. And hopefully, what people have seen as we’ve demonstrated still strong gross profit results despite that. And that comes back to the focus we’ve had on our own execution of initiatives driving the results that we’re seeing. I think that from a macro and competitive environment, it continues to be stable. It’s really back to a pre-proven world where it’s a competitive industry. And that’s where we operate in, but we haven’t seen a level of irrationality that any different than you would see in a normal environment. So quite healthy and we expect to continue with strong gross profit, driving solid very good EBITDA growth.
Operator: And your next question comes from the line of Peter Saleh from BTIG.
Peter Saleh : Great. I just wanted to come back to the CHEF’STORE conversion issue. Can you just elaborate on what that system issue was? And is the 70 basis point impact fully consigned to the second quarter? Or do you think any of that will bleed into 3Q?
Dirk Locascio : Peter, this is Dirk. So overall, we think through there is we had to convert off of a system under a new system by earlier this year as part of our purchase agreement, which we did. So all markets are converted. And it’s not uncommon, unfortunately, for — when you have conversions of this magnitude to have some challenges, which we did see. Let me just put it into context. So when we talk about some sales challenges there, it’s down low single digits. But when you compare that to independents that are in the broadline are up 5.5%, it has a more meaningful impact there. And some of the challenges there were around us we do conversions resulted in issues where orders weren’t fully going through, et cetera. So we had less product on shelves, et cetera.
That’s all been remediated. It has been for a few months, and we’ve been focusing on continuing to get customers back in the store to recoup that and do expect to get back to growth in the second half of the year.
