Emergency services were called to the restaurant, which was housed in a classic art deco building, just after 4.30 this morning after reports a building was on fire.
The Metropolitan Fire Service got the intense fire under control within an hour, but the restaurant was completely destroyed.
The restaurant served food from two kitchens – Sunnys Shop and Mr Chan.
In a Facebook post this morning, Prospect Mayor David O’Loughlin said police attending the scene were “very upset at losing their, and our, favourite restaurant”.
Fire cause investigators will attend the scene this morning.
Prospect Road between Kintore Avenue and Pulsford Road remains closed this morning.
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