An explosion has devastated an Italian eatery in Clare, South Australia, scattering debris across vehicles in the bustling center of town.

The blast rocked the area on Saturday morning, just 50 meters from Clare’s vibrant Christmas market, a popular spot for both tourists and locals.

The explosion obliterated the rear section of Pancho’s Pizza and Pasta, with the impact sending shockwaves that shattered windows in surrounding buildings.

The restaurant’s owner was reportedly asleep just meters from the site when the explosion erupted.

Authorities have estimated the damage at approximately $750,000.

In response, police cordoned off the area, redirecting traffic for the day as investigations into the cause of the explosion got underway.

“I was a bit shaky, bit shaky, because it’s not what you expect on a Saturday morning,” Teesha Whellum said.

“It’s been quite a dramatic start to the day really,” Couper added.

Clare Mayor Allan Aughey acknowledged the challenges ahead for the business.

“The business will be up against it for a while but we’re a group of country folk here that help out, and there’ll be every assistance given voluntarily.”