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A third victim has died and five others in hospital after what police suspect was a targeted shooting at a late-night restaurant on Vancouver's East Broadway.

The shooting happened at the Fortune Happiness restaurant at about 4:30 a.m. Thursday. Two suspects are believed to have entered the busy establishment and opened fire, hitting eight people.

Two died at the scene and the victims' bodies remain in the restaurant, said Vancouver police spokesman Const. Howard Chow early Thursday.

Six others were taken away by ambulance, but sources say a third person died en route to hospital. The severity of the injuries to the five others are unknown.

Chow said two suspects remain at large. No descriptions are available yet.

"I understand it was quite a chaotic scene for our officers," Chow told Global BC.

Chow said tables and chairs were overturned and shattered glass everywhere.

Insp. Bob Chapman said the floor was also littered with what appeared to be nine-millimetre shell casings, likely from automatic or semi-automatic rifles.

Although police aren't releasing much information at this early stage, Chow said it had the hallmarks of a planned hit.

"Early indications are that it's likely a targeted hit," he said. "When we see this type of shooting, investigators tell us it's likely a targeted hit.

"Fortunately we haven't had something like this in a considerable time."

A stretch of East Broadway in the 600-block was expected to remain closed all morning as the investigation into the shooting got underway.

Police have also cordoned off a block behind the restaurant in case it turns out to be part of the crime scene.

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