Patong Police were notified of the fire at 5:10am.
Officers soon arrived at the scene, in front of the Royal Paradise Hotel, to see the fire burning intensely and dark smoke billowing out from the shop, which was still locked with the shutters down.
Also soon to arrive were rescue workers and local firefighters, who managed to prevent the fire from spreading to adjoining units.
No people were injured or killed in the fire, police confirmed.
The property damage caused by the fire has yet to be determined.
The area has been sealed off while police continue their investigation in the hope of identifying what caused the fire.