Police are searching for two suspects who allegedly walked into an upscale restaurant in the Entertainment District on Sunday night and shot a young couple who were sitting down for a meal.

Gunshots rang out inside Michael's on Simcoe, a popular steakhouse located near Adelaide and Simcoe streets, shortly before 10 p.m.

Michael Dabic, the owner of the restaurant, said he was in the kitchen when two masked gunmen entered the establishment, walked directly to the couple's table and starting shooting.

"Once I heard the shots, I was in a little bit of shock. I was thinking it was some kind of weird construction. Then I heard the commotion… screaming, yelling,” he said.

After running to the back of the kitchen to call 9-1-1, Dabic said he went out in to the dining room to see if anyone was injured.

He said he first noticed the female lying down on the booth seat and later saw the male victim sitting up, conscious and breathing.

"He was soaked in blood," Dabic said. "He was wounded but he was upright."

The restaurant owner described the scene as "surreal."

"People were very upset. Some people were just sitting at their table in shock not knowing what to do."

He said police arrived shortly after the disturbing incident unfolded.

The two victims, who are in their late 20s, were rushed to hospital and both are expected to survive, police said.

Speaking to reporters Monday morning, Det. Paul Ward said the female victim suffered a gunshot wound to the hip and the male victim was shot in the neck.

"The people were sitting at the back of the restaurant," Ward said.

“It looks like these people may have been targeted... Looking at the evidence it would seem the bullets were following (the male victim)."

Detailed information on potential suspects has not yet been released but investigators say they are working on releasing surveillance camera images captured from inside the restaurant.

Ward said police are also searching for one witness who has not yet provided a statement to police.

Anyone who may have witnessed the shooting is asked to call investigators at 416-808-5200 or Crime Stoppers anonymously at 416-222-TIPS (8477).