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I wouldn't be surprised if this is the case yeah, but I don't think it's a great business strategy hah.
He could setup a proper online system and work like half the hours he currently works for the same turnover. Limiting orders by your capacity to deal with them is surely a feature of online sales platforms.
My hypothesis is that the current system puts a lot of people off and that is actually the point of it, as a one man operation he's likely as busy as he wants to be and would rather process a dozen orders the way he does than 3 dozen the way it could be done.