Mamata, 12, Manisha, 16, and Tulsa, 23, were "in shock" after surviving the blaze in the family home, above their Indian restaurant in Waimate in South Canterbury, their uncle says.

Their parents, Nepalese couple Tej and Tika Kafle, and their nine-year-old brother, Pram, died in the fire.

Tej Kafle's brother, Bishnu, rushed from Christchurch to Timaru Hospital after he received a call from Manisha just minutes after the daughters were rescued.

Speaking from the hospital foyer, Bishnu Kafle said his nieces were in shock.

The young women were upstairs in their home getting ready for work and school when the fire broke out, he said.

"They opened a door and saw fire and smoke. They told me they broke a window to get outside. They said they couldn't see their parents or brother."

They escaped out a window and onto a verandah where firefighters helped them to safety.

Manisha, 16, suffered cuts to her hand from smashing the window, then phoned her uncle at 7.55am - the fire was reported at 7.41am.

"They are OK, they are missing their parents," he said.

The family, who are Hindu, lived above the Everest Indian restaurant they ran on Queen St, which is the main street in the South Canterbury town.

Tej Kafle arrived in New Zealand nine years ago and the rest of the family joined him here in 2013, Bishnu Kafle said.

They moved to Waimate 18 months ago from Christchurch after purchasing the business. They enjoyed life there.

Tej Kafle was the oldest of four boys. Bishnu, along with another brother Balkrishna, live in Christchurch. The remaining brother lives in Nepal.

Their parents are currently in New Zealand visiting from Nepal, he said.

Family back in Nepal were devastated when they learned of the news.

"I'm very very upset," he said.

Deaths hit Nepalese community hard

A friend of the family, Dhruva Khanal, said the deaths had hit the close-knit Nepal community hard.

He was among members of the Christchurch Nepalese community who went to Timaru Hospital on Wednesday afternoon to offer support.

"We are all one family. This happened to them and it happened to us."

Khanal said the community would support the family in whatever way they could.

"It is a shock to all of us. This is something new to us so we are not sure what to do.

"If we were in Nepal there are systems in place but here in New Zealand we will need to work with the family and talk about what to do next."

Dhruva said the family were "lovely' and well thought of in the Nepalese community.

"It's very difficult and very upsetting," another relative of the family said.

Non-resident Nepalese Association of New Zealand president Chakra Thapa, who is based in Queenstown, and 10 other Nepalese families would join the victims' family in Waimate and help with funeral arrangements.

Fire started in the kitchen

Emergency services received a call at 7.41am after smoke was seen billowing from the roof of the building, which adjoins a block of shops.

Police said it appeared the fire started in the kitchen and there was no fire exit. The blaze blew out the building's windows.

Firefighters were on the scene within four and a half minutes. It took 45 minutes to put out.

"It's been a pretty intense fire ... pretty black and charred. All the windows have gone," Mid-South Canterbury area commander Inspector Dave Gaskin said.

Smoke alarms were in the five-bedroom home but fire investigators were trying to establish whether they were working.

Firefighters plucked the three surviving sisters to safety - along with two heroic supermarket workers who were comforting them - before pulling the three bodies from the fire.

Waimate chief fire officer Duncan Lyall said Tej, Tika and their son Pram were found in different rooms when firefighters arrived.

Firefighters dragged Tika and Pram downstairs to a room out the back, while Tej was taken on to a verandah upstairs.

Rescuers unsuccessfully attempted CPR on the trio, Lyall said.

"It was terribly smokey, really black thick smoke inside."

Supermarket staff tried to rescue family

Two "remarkable" supermarket staff members had already climbed onto the building in a desperate bid to rescue the family, Gaskin said.

"They were on the verandah at the rear of the restaurant. A couple of the young fellas from the New World climbed up there to keep them calm until the Fire Service arrived."

"They've done a pretty remarkable job," Gaskin said of the staff at New World, where Tulsa worked in the bakery.

Firefighters helped all five to safety

Gaskin said the three bodies were in different parts of the upstairs home so it did not appear the family was in bed.

The surviving children were taken to Timaru Hospital with smoke inhalation and moderate injuries. A hospital spokesperson said they were in a stable condition.

One had minor cuts to a hand from escaping through the window, the Fire Service said.

"Early indications are it [the fire] appears to be a tragic accident. The fire may have started in the kitchen up above in the flat not down below in the restaurant and it appears it has taken hold very quickly," Gaskin said.

The deaths would be referred to the coroner.

Deaths 'a tragedy'

Waimate Mayor Craig Rowley called the incident a "tragedy" for the Waimate community.

Rowley knew the family and owned a shop on Queen next door to the restaurant.

That meant the tragedy hit home, he said.

Pram attended Waimate Main School with one of his sisters. Principal Adam Rivett said on behalf of the school their hearts went out to the family.

Waimate District councillor Arthur Gavegan said he understood the family moved to Waimate after another restaurant they were connected to in Christchurch was destroyed in the earthquakes.

"Anything like this devastates the whole town," Gavegan said.

"They are people who are Waimate people and they are part of our community."

Fundraising for the family

Waimate Mayor Craig Rowley has set up a support fund to assist the family.

Dubbed the 'Everest Mayoral Support Fund', Rowley said he was "heartened" by offers of help flooding in from the community.

People can donate into the account at ANZ 01 0893-00816-3600.

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