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Manchester N.H. PD has a LONG reputation of harassing legal gun owners and being difficult when one wants a permit.
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No issues getting permits when I lived there not long ago. I helped somebody get a permit there as well, also with no issues. In fact, Manchester is the only place in the state that I know of that allows people to apply online. The 1970's ended a good 30 years ago.
As for the Pizza shop owner, he made the wrong call. Warning shots, especially in a city, are reckless. If a situation calls for deadly force don't fire warning shots, and if it doesn't call for deadly force then don''t fire at all.