I remember reading in Haaretz about a restaurant owned by someone whose family had lived in Tiberias for centuries and who of course were observant. She got fed up with the arriviste Mafiosi and decided that she wasn't going to pay tribute anymore. Nothing else would change. I will search Haaretz later, you try as well.
Her cooking was reputed to be excellent and with many authentic Tiberian dishes. Once you are in Tiberias, ask around. The place seemed to be well known.
See also in Haaretz the articles about the FLQ (Front de Liberation de Quacher) in Jerusalem- a group of kosher restaurants that have said told said Mafiosi that they are a cross that will no longer be borne and that they should take a walk.
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