Add to the list of closures - Barcarola in Kfar Saba and Minna Tomei in Herziliya.
On the more positive side, however, Food Art is indeed no more but the same owners and chefs continue there now that the place has been redecorated some. The new name is Heder HaOchail (The Dining Room) and the new modus operandi will be "upscale Israeli cuisine" ...not felafel but a blend of Middle-Eastern, French and Arabic cuisines, dishes priced moderately. The new place is now open and running-in. I will give them a bit of time and then will visit and report back.
As to further closings - indeed there will be but my estimate is that already well-established upswing places will make some shifts in their menus and staffing (but hopefully not in quality); not well-established upswing places will have to hang on by their teeth and many will fold their tents. Mid-priced restaurants of good name will hold fast, the hantarishim (fly-by-nights) will close. It will be a boom time for cafe-restaurants. After all, where else can you go and order one cup of coffee and sit for two-three hours? And indeed, pizza, felafel and burgers will do quite nicely for a while.
Continuing - places that are "in" because their food is good and good value for money (no matter the level) will do fine but those that are "in" because of social reasons will vanish into the night.
The same, by the way, will be true for the USA. Top ranked places will remain in business; middle-ranked restaurants will fall; mass-market restaurants will survive; cafes will do boom-time business.