Israelis and foreigners still complain about bad service at shops and restaurants. Simply put, Israelis have no experience with good service. Partly the historical legacy of socialism (no wo/man should serve another) and partly the limited food and leisure history are probably a good first guess. There is also the blunt, straight in your face: "just get it done and be done with it" culture which translate into rushed service. Israelis are simply more hyper than most Europeans. This means waitresses are going to hop to a Table, take the order, and quickly buzz away to the kitchen. Yet there is steady pressure from foreigners to deliver better service. Happily this market demand is met by a few good cafes. 

My personal experience is mostly with cafe-restaurants. Ones that dot the urban landscape throughout the central region. The few big chains, Arcafe [HE], Aroma and Cafe Cafe [HE], have improved their service the past few years. Some with table service (i.e. Givatay'im Mall Arcafe), which is a big change. The more established  Traditional Israelis started out with a bit of discomfort when Arcafe first offered table service. Then full table service was discontinued, with waiters delivering orders placed at the counter. Israelis are going to continue improving their service in hotels, restaurants and shops. But with a history quite differently than Europeans, Americans and Asians, the journey is going to take a few more turns and twists.