I'd give the guy the benefit of the doubt. He's been running this joint for a while now, and I bet he actually is making decisions based on metrics he has. Though I agree that conversions from pizza to indian food is probably pretty low, it may just be that the margins are high enough that it warrants selling the pizza. I don't think he would do the pizza business unless it had promise in one way or another.
You are right. The guy is there everyday. If he's like a typical small business owner (I've dealt with thousands) he knows exactly what he is doing and has it all in his head.