The restaurant on Stirling Road, near the Tesco superstore at Clifton Moor, caught fire at around 2.40pm on Thursday and the cause of the blaze is not yet known.
It spread from the roof of the building, which subsequently collapsed, and caused extensive damage which could result in its demolition.
North Yorkshire Fire and Rescue Service's Bob Hoskins said tackling the blaze was made difficult by the fact that highly combustible materials such as cooking oils were stored on the site.
Firefighters had to be withdrawn from the building once the roof began to collapse.
Nobody was injured and all customers and staff had been evacuated.
Mr Hoskins said the fire took hold 'very quickly'. Crews remained at the scene overnight and will continue to monitor hotspots today before the site is handed over to its owners for further safety assessments.
An investigation into the cause has now begun.
In October 2018, a discarded cigarette ignited combustible materials in a storage yard behind the B&M Bargains store on the Clifton Moor retail park. A large fire then took hold and completely destroyed the building.