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Your warehouse protects resources from enemy raids and plundering. The warehouse has a limit on the amount of resources it can protect. Keeping this building upgraded is to your benefit and will also allow you to receive Army Damaged Received reductions when glory banners are applied to it. Research in the Development tree of the Academy will add additional storage protection, certain equipment and wonders can add additional storage to your warehouse.
Another benefit of having an upgraded warehouse makes it so your troops can only consume so much food for upkeep. If your warehouse can store 500k food, your troops can only eat any amount than you have greater than 500k. When you have 500k food left, the consumption of food will stop.
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