
Casey B. answered 03/25/19
Math, Science, and Writing Tutor with ESOL Endorsement
Since the prior sentences are focused on describing Nick, it is indeed Nick that greets them with a Good Evening. As a rule, if a pronoun is used to explain who is speaking rather than a name, then it is typically referring to the last name mentioned in the text.
After Harry says "Says who?" he is described as emptying out his shoes of water. It seems as though someone who is wet or has shoes full of water, may not think that an evening is going particularly well or "good".
As for the context and how it relates to the overall story, most of the time when introducing a new scene or describing people, authors may include conversations or details that may not necessarily have a particular purpose other than to move the story to the next critical plot point.