If this story is true, it makes no sense. The cost of the ingredients is minimal. Why would the owner ruin his reputation by stinting on ingredients?
The story is true and accurate, I spent years in restaurants and years making Pizzas as mgmt and as help.
The purpose of the afternoon discount is a form of advertising to win new customers and to have cash flow during those times, but no matter what, to always win and to keep customers for your product.
So how bad at business was this guy, I never went back although I frequently ate lunch next door to his place and had only tried his place on a whim.