The owners of a popular Mossel Bay restaurant are picking up the pieces after the establishment was destroyed by a fire in the early hours of Thursday morning.

Bertrum Braaf, who owns the Le Belea Sports Bar on De Bakke beach, told News24 they were distraught when they found out what happened.

Besides the building, which was recently renovated, they lost all their stock and cash on the premises.

"Your heart, everything, went into the building and this happens here," he said. 

He did not know how the fire started but said no one was hurt or injured.

The Mossel Bay municipality, which leased the building to Braaf, confirmed that Fire and Rescue Services received an emergency call just after midnight.

By the time they arrived on scene, the entire structure was already alight. The blaze was extinguished just after 08:00.

Police are investigating.

"It is with great sadness and disappointment that we have to inform the public of this unfortunate incident. The cause of the fire is yet to be determined," said municipal manager Thys Giliomee.

"For now, we will secure the premises and decide at a later stage on the way forward and possible rebuilding of  the icon[ic] building."

(Supplied)