"This was a landmark restaurant, it's a big deal." says LeVon Hoffer, Tappen.
It's more than the talk of the town, it's a sad sight for many spectators.
"There are people that were staying here that lost everything, they have nothing, that's really sad." says LeVon Hoffer.
The motel owner says around 40 people had to evacuate during the fire.
Although there were no injuries, fire officials say the building could not be saved.
"Smoke was coming about from just about everywhere it could, and we tried to make an entrance, it vented out the roof, we had to call everybody out, there was nothing we could do after that." says Stuart Thompson/Steele City and Rural Fire.
The Red Cross is making sure everyone has a place to stay as everyone waits for answers.
"We've been called here before and we always been able to put it out, this time it just had too much of a head start for us." says Thompson.
"Lot of good times in there, I know a lot of people, lot of families that live there." says James Nemec/Steele resident.
"In a small community, every little thing you lose is really important, that's how I feel." says Hoffer.
The owners of the Lone Steer say they do not have insurance and are not sure where they will be staying.