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Working for the hospitality industry I can tell you that this man is obviously clueless and probably never ran a restaurant before.
It's not about the $$$, it never is. It's about reputation. What he did was cause you to tell numerous lurkers/posters/future customers what lousy service you recevied and, therefore, lost an amount of $$$ he will never be able to recover.
Studies show that when someone has a good/great experience, they tell on avg 3 people. But when they have a bad one, they tell 10 or more....
It's never about the money, Loco!
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