The new year began badly for three North Side entrepreneurs, whose businesses along a half-block of Western Avenue were ruined or damaged in a pre-dawn fire yesterday.

Two of the stores were gutted, firefighters said. One was The Modern Cafe, a landmark bar since Prohibition ended in 1933. The other was Kerry Kennedy's floral and gift shop, where firefighters believe the fire probably started.

Mr. Kennedy's apartment, on the second floor above his store, also was destroyed.

The third business, a salon and retail store called Styles by Thomas & Thomas, had water and smoke damage inside. The salon's roof was left with a sizable hole caused by flames.

"In an instant, I'm jobless," said Shirlene Thomas, who has run the salon for 10 years.

Emergency responders shut off utilities in her business while the fire was being fought. She said she hoped electricity and water service would be restored soon, so she can clean up and reopen before clients go elsewhere.

Investigators said they had not determined what caused the fire. Arson dogs were brought in as part of the investigation.

The three businesses operated in a brick building that stretched from 858 to 862 Western Ave. Property records list the owner as George Bouzos, a retiree who once ran The Modern Cafe.

His daughter, Irene Zotis, now operates the cafe and a delicatessen just down the block on Galveston Avenue.

The deli had a bit of smoke damage, Mrs. Zotis said. Fire caused extensive damage to her cafe, which Hollywood turned into one of the neighborhood's more famous buildings.

Interior scenes for the 2000 Michael Douglas movie "Wonder Boys" were shot in her cafe.

Asked if the business was a total loss, Mrs. Zotis shrugged and said, "It doesn't look good. This is everything my parents worked for since 1974."

Her father ran the business for 19 years before selling it to her in 1993. She gave the building a face-lift and added some conveniences, such as a cash machine, but the place retained the flavor of an old-time bar.

Mr. Kennedy's store, formally called K.S. Kennedy Distinctive Floral, was burned to its shell.

Derwin Rushing, an attorney whose office is a few doors away, said Mr. Kennedy's store had become a neighborhood gathering place.

"I went there every morning for his coffee, the best around, and so did a lot of other people who work in the neighborhood," he said. "This year I did almost all my Christmas shopping at his store."

Mr. Kennedy, who opened his floral shop three years ago, said he planned to rebuild on the North Side, preferably in the same spot.

He and friends, at his apartment for a New Year's celebration, escaped from the building about 2:15 a.m. after seeing thin layers of black smoke near the store's door.

The fire intensified after they got out. It was then that Mr. Kennedy realized his dog, Lucy, was still in the burning building. He went back inside and retrieved her.

He said the fire burned his floral inventory and all the possessions in his apartment. Even so, he plans to continue working, saying he will temporarily set up shop at a friend's bed and breakfast so he can provide flowers for a wedding and a funeral this weekend.

Police stopped vehicular traffic on five blocks of Western Avenue for nearly 10 hours after the fire so crews could work. Many North Side residents walked over to offer their sympathy to business owners hit hard on the first day of the year.

Ms. Thomas, her eyes wet with tears, told well-wishers she was in shock. Mrs. Zotis, a part of the neighborhood for 35 years, said she felt the same way. She said her consolation was that nobody was injured, at least not physically.