About 30 firefighters worked to extinguish the blaze after the shop caught fire on Burke Street in Glen Iris just after 4am.
Two people, who live in a home above the business, were safely evacuated, police said.
The cause of the fire is yet to be determined and investigations remain ongoing.
Police are urging anyone who may have witnessed the incident or has dashcam/CCTV to contact Crime Stoppers on 1800 333 000.
