Customers were evacuated when fire broke out in Dannevirke's Black Stump Cafe early on Wednesday afternoon.
The fire was thought to have been caused by a fault in a clothes dryer.
Dannevirke Volunteer Fire Brigade was called to the fire at 1.20pm.
They extinguished the fire and removed the dryer from the laundry which was fire damaged.
Fire engines blocked one lane of the town's main street on the brigade's arrival.