Firefighters are battling a two-storey blaze in Pukekohe, south of Auckland.
Smoke was seen billowing into the air and fire streaming from the upper windows of the Perkins building, which houses the Monarch bar and restaurant.
The building on the corner of King Street is more than 100 years old, according to the Franklin Historical Society.
A worker near the building was first to the scene and said she was shocked.
Store manager from Your Local Coffee Roasters, Carrie Chitty, said she looked out and could see smoke billowing out the windows.
Chitty was putting tables out when it happened and panicked, she said.
"Adrenaline rushed through and I just rang fire and emergency straight away."
The Monarch restaurant owners were being comforted by locals and police officers at the scene.
Locals in the area said it was an awful thing to happen in the tight community.
Fire and Emergency said the building was empty and no injuries had been reported.
Eleven fire trucks were at the scene.
And Auckland Transport said buses through Pukekohe were being detoured.