Hmm..on my webpage with J3.2 on board -- no problem with template installation.
here is a proof.
restaurat.png
p.s.This template is very heavy (>3,3 MB) and probably your hosting have limitations.
You can try to slim down template...
Please from template package delete all files from gk_restaurant\images -- your template should have now less than 1 MB
and try to install again....
if it will works copy those images using FTP from untouched template zip.