I think a lot of people use it instead of Iranian. Technically it might be an ethnicity. But, for example, I can find restaurants that advertise having Afghani food but no restaurants with Pashtun or Tajik food, restaurants with Syrian food but not Arabic or Kurdish restaurants, etc. But, while most restaurants go by the name of the country, not the ethnic group, there are no Iranian restaurants, only Persian ones.
I think a lot of people use it instead of Iranian. Technically it might be an ethnicity. But, for example, I can find restaurants that advertise having Afghani food but no restaurants with Pashtun or Tajik food, restaurants with Syrian food but not Arabic or Kurdish restaurants, etc. But, while most restaurants go by the name of the country, not the ethnic group, there are no Iranian restaurants, only Persian ones.