At its height 45 firefighters tackled the blaze on Beach Road, Hemsby, after it started in a deep fat fryer.
The chip shop has been completely gutted and another business has been damaged by the flames, Norfolk Fire Service said.
The fire is now under control and being damped down, but the area is due to remain cordoned off into the evening.
When the fire erupted, thick smoke billowed across the road near the arcades and the Hemsby Beach Holiday Village.
Eyewitness Jack Barnes said: "We were walking past the place and we thought it was a barbecue starting off, and obviously then the staff were outside, and said that no-one could go in, it was a fire.
"It was a shame because the place has just been done up - half of it was being done up and half of it was being used.
"It's pretty shocking for a nice family resort, at the height of the season."
Paramedics treated one person for an asthma attack but there were no further casualties.
Incident commander Martin Harris said you could see smoke 200ft (61m) in the air as he approached in his fire engine.
He said three members of staff tried to tackle the fire when it broke out, but they were forced to leave the building and dial 999.
"I believe it was a fire in a deep fat fryer initially, and then it spread through the chip shop quite quickly and into the restaurant next door," said Mr Harris.
"Luckily we managed to stop it before it got to the other commercial properties to the rear."
A number of businesses stretch along Beach Road including restaurants, gift shops, a nightclub and a betting shop.
One shop owner, Barry Cunniffe, told BBC Radio Norfolk the person who ran the chip shop had spent 18 months refurbishing his premises, which includes a restaurant, but now "the whole thing's gone" and it was "devastating".
A seafront fish and chip shop became engulfed in flames as holidaymakers at a Norfolk resort looked on.