Police say the alleged arsonists, 22-year-old Barry Hsikia, a 16-year-old boy and a 19-year-old man, allegedly smashed their way inside the Almina Lebanese restaurant about 3.30am Saturday, before dousing it with petrol and setting it alight.
Mr Hsikia, from Fitzroy North and the 16-year-old were denied bail in separate hearings on Sunday afternoon.

In remanding Mr Hsikia, a magistrate described the alleged attack as a “serious example of arson” that caused “extensive” damage to the restaurant, which sat below an apartment complex where hundreds of residents lived.
Appearing via video link from the Parkville Youth Justice Precinct dressed in a black jumper, the 16-year-old boy sat quietly while Judge Julie O’Donnell refused bail, describing Saturday’s alleged arson could have had “catastrophic consequences”.
“The level of risk is grave,” she said.
The children’s court heard the boy did not have a criminal history, but had alleged robbery and financial deception charges before the court pending on summons.
Prosecutors in the Magistrates Court and a children’s court alleged Mr Hsikia and the 16-year-old had been given orders by the same organised crime syndicate that was behind the recent campaign of terror that has seen Melbourne bars and restaurants firebombed and shot at in recent weeks.
But the court heard neither Mr Hsikia nor the 16-year-old boy had direct links to the syndicate.
In the hearings for Mr Hsikia and the 16-year-old boy, prosecutors said neither of the accused tried to ensure no one was inside the venue before setting it alight and showed little regard for the residents living above it in the same complex.
Prosecutors said the community expected significant consequences for alleged arsonists working for the syndicate, and members of the public were risk of being seriously hurt or killed by the recent spate of brazen arsons
“This sort of behaviour is not accepted,” Senior Constable Laken Lanza told the court during Mr Hsikia’s hearing.
The courts heard Mr Hsikia and 16-year-old boy, who cannot be named because he is underage, ignited the blaze from two points in the restaurant with a security guard inside, before running away and meeting up with the 19-year-old nearby.
Prosecutors alleged the trio briefly stopped to toss three mobile phones into the Yarra River before they kept running.
The court heard a black Nissan Qashqai with fake number plates, stolen from the car park at Dandenong train station on April 26, was seen near the restaurant.
A short time later, police allegedly spotted the 19-year-old driving another vehicle, a black Toyota Aurion rental car, on Barassi Way.
The court heard the 19-year-old, from Collingwood, was “evasive and nervous” when police caught up to him.
Prosecutors said police found a jerry can, a phone, an allen key, diamond earrings, a Nike puffer vest, a grey hoodie and tracksuits, Nike shoes and black socks when they searched the car.
Police dogs allegedly sniffed out Mr Hsikia and the 16-year-old boy as they hid under the Bolte Bridge in Ron Barassi Snr Park just before 4am.
Officers allegedly found gloves and balaclavas near the pair, who were then taken to Melbourne West police station, where Mr Hsikia gave a no-comment interview.
Police also later found the three phones in the river.
The court heard Mr Hsikia, who currently lives in public housing in Fitzroy, and the 16-year-old boy, had no prior criminal history and that it was their first time in custody.
Mr Hsikia’s defence counsel Lily Yan told the magistrates court he may be vulnerable behind bars because he was relatively young and may suffer withdrawals from cannabis.
Alexandra Brown, for the 16-year-old boy, told the children’s court the teenager’s safety may be at risk behind bars if he was remanded in Parkville.
Ms Brown said the boy, one of seven siblings, regularly attended school, helped his single mother raise his two-year-old sister and hoped to one day play professional basketball.
Almina was still being combed for evidence on Sunday.
Police charged the 19-year-old man on summons and released him pending further inquiries.
Mr Hsikia will return to the Melbourne Magistrates Court on May 19.
The 16-year-old boy will return to a children’s court on May 21.
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