Probably not the greatest name for a restaurant, but it sounds like there is no malicious intent. Still, they must have known there would some type of backlash.
As to eating there? Yeah, I would. Just for the surreal experience of eating at a restaurant with that name. That would never fly here in the US.
Despite that whole freedom of speech thing, you're right, we crank out way too many jewish lawyers for this to survive over here.