FIRE has destroyed the popular Boathouse Cafe at the scenic country town of Daylesford, northwest of Melbourne.

About 30 firefighters battled the blaze, which broke out about 10.50pm yesterday, and spread to a gas meter and adjoining pipeline.

Daylesford CFA captain David Walker said the structure was completely ablaze when crews arrived.

Oils inside the cafe's kitchen helped fuel the fire.

"The fire was very intense," Mr Walker said.

"The front facade probably is standing and that's about it - everything else is gutted.

"It's 100 per cent destroyed."

The damage bill is expected to be in the hundreds of thousands of dollars.

Mr Walker said the cafe, which overlooks Lake Daylesford, was a popular attraction among vistors from Melbourne.

"It's a very iconic building in the Daylesford area," he said.

"It has been on the premises there for as long as I can remember.

"It's a nice little setting but unfortunately not for a while."

Crews managed to prevent the fire from spreading to a nearby toilet block.

The cause of the blaze was unknown.

Investigators will visit the scene this morning.

Read more on the Herald Sun.