Shropshire Fire and Rescue Service crews attended a "commercial fire" involving Kay's Lounge (formerly Cinnamon Spice) off Oxford Street in Oakengates, Telford.
Oxford Street was closed while firefighters tackled the blaze and police are in attendance. The road reopened at about 1pm.
A fire service spokesperson said the fire involved an extraction unit at the three-storey building. Crews used breathing apparatus, jets, a ladder and a thermal imaging camera.
The fire service's on-scene incident commander, Craig Jackson, said: "We received a call around 9.50am to a chimney fire, and two appliances were sent from Telford Central. On arrival flames were issuing from an external extractor fan and also from a roof to a flat that is attached to the property.
"Crews quickly requested further appliances, so we now have four firefighting appliances here, with an incident command unit as well.
"The crews quickly dealt with the fire inside the premises and on the outside of the property, and we are continuing to work in the loft space where the fire has spread and where access is difficult.
"So we've got our aerial ladder platform here so we can get up to the roof and remove some of the tiles.
"There were no other occupants in the building besides the business owners in the restaurant and they were evacuated safely. No one has been injured in the incident.
"What we would ask is the public stay clear while we carry on working."
Video posted on social media shows huge flames protruding into the skies above the Station Approach car park off Uxacona Way.