The fire happened around 1:20 Monday morning at Nick’s On the Beach. The popular restaurant sits on County Road 30-A near Blue Mountain Beach.
Authorities say rags sitting in a plastic container probably contained cooking oils and other chemicals. They believe the chemicals mixed, sparking a fire that gutted the entire kitchen.
No one was hurt, but the restaurant remains closed due to smoke and heat damage.
Officials estimate the damage at more than $375,000.