The cause of the fire still is unknown, and no injuries were reported.
The fire was reported to the Chapel Hill Fire Department at 3:51 p.m. and officials arrived at restaurant, at 6203 N.C. 86, within five minutes.
Other agencies, including the New Hope, Hillsborough and Eno fire departments, assisted the Chapel Hill Fire Department. The restaurant is located in the New Hope district.
By the time fire officials arrived on the scene, a natural gas line had burst, fueling the blaze.
"We have to get above the fire, spray water on the area and of course, turn off the gas," said Chapel Hill Deputy Fire Chief Robert Bosworth, while firefighters combed the building for potential hot spots.
At least 25 firefighters worked diligently to fight the blaze, which was extinguished in less than an hour.
Damage to the roof and outer walls was visible, but Bosworth said interior damage to the building was even worse than what could been seen from the outside.
"The kitchen is pretty much gone," Bosworth said. "There's going to be a lot of damage from fire, water, and smoke.
Piedmont Electric was also on hand to prevent the electricity in the building from complicating the fire fighting efforts.