I suspect he is telling you the truth, that most of their net revenue comes from phones and toys. It's risky to change to something that sounds like a current loss leader as the primary business, even if in reality there is a significantly different emphasis.

Sadly, the opportunity costs of running a 2nd rate phone store must suck. Sounds like it would be more profitable to use the space to make and sell hamburgers or pizza.

Hmmm. Maybe they could have a "maker" workshop that also sells pizza and beer???