Emergency services attended the scene of an oil fire at Kialla Lakes Milk Bar in Kialla just after 8am this morning.
Shepparton CFA station officer Paul McKendrick said the incident took place when the owners turned on the vat as normal to start their work day.
"There has been some kind of malfunction in the vat and the oil has overheated and caught on fire," he said.
Mr McKendrick said the fire was contained to the vats within 10 minutes.
"There's been a lot of smoke damage inside the building," he said.
It was anticipated the milk bar would be closed for some time following the incident.
Waranga Drive was closed to traffic during the incident and had reopened by around 8.15am.