Lewis' Continental Kitchen on Curlewis St in Bondi was firebombed in October 2024, allegedly under the direction of Iran's Islamic Revolutionary Guard Corp.
The Royal Commission on anti-Semitism and Social Cohesion is holding two weeks of public hearings into the lived experiences of Australia's Jewish community.
Owner and co-founder of Lewis', Judith Lewis, told Thursday's hearing the eatery acted as a "communal hub" for over 50 years.
"People came and met there, and were able to sit and eat," she said.
"The customers very much became our friends."
Ms Lewis explained Kosher is the way of eating as prescribed by the Jewish scripture, or Torah, but can be eaten and enjoyed by anyone.
"It's a very healthy way to eat," Ms Lewis said.
Ms Lewis' daughter Karyn said she grew up in the restaurant, as did her own children.
"We used to ride our bikes down ... and spend time with Dad and Mum while they were working," she told the inquiry.
"It's been very much a multi-generational learning experience, which has been amazing."
A parliamentary committee recommended the IRGC be listed as a terrorist organisation after intelligence assessments found it was allegedly behind both the firebombing of Lewis' restaurant and Adass Israel Synagogue in Melbourne the following month.
"ASIO assessed these attacks were fostered by the IRGC through a complex scheme of proxies, in an attempt to conceal IRGC involvement," the report said.
The attacks led to the expulsion of Iran's ambassador from Australia in August.
Much of the women's evidence was given in a closed hearing so as not to prejudice ongoing court matters.
Earlier, a number of those giving evidence to the inquiry said they were living in fear due to attacks on Jewish homes, businesses and places of worship.
Counsel assisting the commission, Zelie Heger SC, described the period as the "Summer of Terror".
The Executive Council of Australian Jewry reported more than 2000 anti-Semitic incidents between October 2023 and September 2024, a threefold increase on the year before.
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