“A Chinese Muslim, Ayub, and six Afghans were killed, and several others were wounded. The blast occurred near the kitchen,” Zadran said in a statement.
The police spokesman, who said the cause was under investigation, had earlier said the blast hit a hotel.
Italian NGO Emergency said its hospital nearby had received “seven people dead on arrival”, with 13 others admitted to the surgical department.
“Among the wounded are four women and a child,” Dejan Panic, the NGO’s country director, said in a statement.
The owner of a flower shop, requesting anonymity for security reasons, said the blast happened at the other end of the street from his business.
He told AFP he heard the “strong sound” of a blast in the crowded area.
“It was an emergency situation. Everybody feared for his own life,” he said.
“I could see at least five wounded.”
Within hours of the blast the street was reopened to traffic, with cars streaming past the restaurant’s covered entrance.
Windows in the building opposite were smashed, according to an AFP photographer.
Taliban officials have vowed to restore security to the country and are courting foreign investors to secure crucial revenue streams as foreign aid funding dries up.
Chinese business visitors have flocked to Afghanistan since the Taliban regime took power in 2021 for the second time.
The following year, Isis claimed a deadly attack on a Kabul hotel popular with Chinese guests.
China, which shares a rugged 76km border with Afghanistan, has close ties with the Taliban government.
-Agence France-Presse