The fire was reported at 2:38 a.m. at Savoy Cafe at 1030 N. 10th St., San Jose fire Capt. Steve Foreman said. It was controlled at about 7:40 a.m.
The second building affected is a recycling center located at 1032 N. 10th St., Foreman said. The two buildings cover about 8,000 square feet, Foreman said. Both were destroyed.
Firefighters arrived to find flames shooting 20 to 30 feet in the air from an area between two buildings, Foreman said. That may indicate that the fire started outside the structures, he said.
No one was injured in the fire.
The cause of the blaze is still under investigation.
Fire Capt. Chuck Rangel said a stretch of railroad tracks behind the buildings owned by Union Pacific has been closed.