CFA was called to the fire on Mount Dandenong Tourist Road at 8pm and found the second storey of the timber building on fire.
Around 40 firefighters battled the blaze and were able to contain it to the second storey, however half the building was destroyed.
Fire investigators attended the scene and believe the cause was accidental.
No one was in the café when the fire broke out.
Ten CFA trucks and three brigade vehicles from Montrose, Mt Evelyn, The Basin, Bayswater, Boronia, Mooroolbark and District 13 attended the scene.