The fire broke out in the northern suburb of Aubervilliers at 8.30pm Sunday and is believed to have been linked to an attempted robbery.
Three people were airlifted to hospital after suffering severe burns from the incident and six police officers were left with minor injuries after responding to the incident.
According to local media, the arson was linked to a “robbery gone wrong” – but police are yet to officially confirm whether the incident was an attack or discuss its motive.
Fifty firefighters were scrambled to the scene, according to reports, and 15 vehicles were required to tackle the blaze.
An emergency services source said: “The restaurant is part of a five-story building.
“Everything is being done to contain the blaze, and search for other victims.”
France is currently under a state of emergency after a series of terror attacks carried out by bombers and gunmen affiliated with al-Qaeda and the so-called Islamic State.
Officers have not yet disclosed who was responsible for the attack on the restaurant.
Seine-Saint-Denis has suffered a number of violent disturbances in recent years, including terrorist incidents and rioting.
There is no indication this incident is linked to terrorism.
Eight people were killed and dozens more injured in London earlier this month after ISIS terror cells ploughed a van into pedestrians walking across London Bridge.
After crashing the van, the men moved through nearby Borough Market, stabbing and killing innocent civilians indiscriminately.
The attackers were shot dead by armed police within eight minutes of the first call to emergency services.
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