Kirwee Tavern on Courtenay Rd in Kirwee, west of Christchurch, was reported to be ablaze at 11.47pm, Fire and Emergency NZ southern shift manager Riwai Grace said.
"The informant said it was burning well so we went straight to a second alarm."
Two fire trucks and a tanker were tasked to the fire but due the size of the blaze - which was visible from Kirwee Fire Station - the local crew immediately called for extra back-up, escalating the fire to a third alarm.
Everyone had been accounted for and there were no reports of injuries.
At the peak, 16 appliances and about 60 firefighters from Kirwee, Darfield, Coalgate, Rolleston, Sheffield, West Melton, Christchurch Central, and Wigram were sent to battle the fire.
Tour fire engines and one tanker are still in attendance this morning but the tavern had been "totalled".
Police and a fire investigator were notified of the fire last night due to its size and location, but there was no suggestion it was suspicious at this stage.