Black smoke could be seen in the area, but it was not yet known how much damage there was to Brazen Eating House in Filleul St.
An Otago Daily Times photographer at the scene said smoke was coming from the second floor of the property and from a large industrial chimney.
A Fenz spokesman said four appliances – two from Dunedin central and one each from Willowbank and one from Roslyn – initially attended about 8am, while a command unit arrived separately.
The fire happened on the top floor of the two-storey building and Fenz were trying to keep it under control, he said.
The premises have been home to various eating establishments over the years, including 95 Filleul and Bracken.
It became Brazen Eating House, serving tapas-inspired international fusion food with a Kiwi twist, earlier this year.