Demolition crews from PMI were working Monday at the old Dixie Cafe at 1301 Rebsamen Park Road in Little Rock.
Centennial Bank plans to build a branch on the site.
Dixie Cafe announced in late 2017 that it was closing all 14 of its Arkansas restaurants, as well as three in Oklahoma.
In a statement issued then, an official with the company noted declining sales and increasing costs while calling it a "very difficult operating environment for full-service, family-oriented restaurants."
Conway-based Centennial Bank paid $1.3 million last year for the property. It said in July that it would take 12 to 18 months for the new branch to open.