"echar" is one of those ubiquitous verbs, which can mean almost anything, depending on the associated complement.
In Madrid, almost nobody observes the siesta by sleeping. Most smaller stores (bakeries, hardware stores etc) do close from 2pm to 4:30pm, however, and people do take these long leisurely lunches from 2 to 4. It's definitely a gastronomic good value, as all restaurants (not bars or cafés, though) are required to offer a prix fixe "menú", so that you can have a 3-course meal, including bread and a drink of your choice, for a standard price, generally ranging from 8 to 16€, or about 10 to 20 U.S. dollars. I generally eat lunch from 3:00 to 4:30, and end up just having tapas, or a light collation at home, at dinner time.