Once called ‘the hottest table in the city’ by food critic AA Gill, The Tower Restaurant first opened 22 years ago.
With its lease due for renewal, owner James Thomson says he has chosen not to extend it having become concerned about how the restaurant would be able to operate under social distancing restrictions.
The closure will see 37 jobs made redundant.
“We are saddened by the closing of the Tower restaurant after 22 enjoyable and successful years of working with James and his team," says Peter Williamson, director of the National Museum of Scotland.
"The hospitality sector has been hit very hard by Covid-19 and we now need to take stock and consider the long term future of this space so that visitors and guests can continue to enjoy what remains one of the best views in Edinburgh.”
Thomson also owns The Witchery and Prestonfield House hotels in the Scottish capital, and says he hopes both will be able to reopen on 15 July following final confirmation from the Scottish Government.
“The Tower was the first rooftop restaurant in Edinburgh and quickly gained a worldwide reputation for great food and service which has stayed with us down the years," he says, commenting on the closure.
"Covid-19 presents us with some insurmountable difficulties and, with our lease coming to an end anyway, we’ve had to take the decision not to reopen.
“The longevity of our success has been down to our loyal customers and the hard work and dedication of our incredible staff. Some of them have been with us for years so this is a sad time for all of us."
The Coronavirus crisis has already had a devastating impact on the future of the hospitality sector.
Last week it was reported that multi-award-winning gastropub group The Seafood Pub Company had entered administration after failing to secure funding to help support it through the ongoing Coronavirus lockdown.
Meanwhile, the iconic Le Caprice in London's Piccadilly, Mayfair's Indian Accent, and chef Alex Jackson's Sardine in Hoxton, all announced they would be closing permanently as a result of the impact caused by the pandemic.