This is an amusing little expression. Siamo alla frutta! Literally, "we're at the fruit." What could this possibly mean?
I'm glad you asked. Italian, as you might imagine, is replete with proverbs and expressions featuring eating and drinking. This is one of many. It means, rather dramatically, "we're done for," "this is it," "it's all over." It comes from the fact that during a proper Italian meal, the last course is the fruit course, which means that, alas, the meal is finished.
(in the picture, a still life by Caravaggio)