Bystander video showed the car repeatedly backing up and going forward, destroying everything inside the business.
The rampage happened around 7:30 p.m. at Tacos Reyes restaurant near Saticoy Street and Topanga Canyon Boulevard.
Police told Eyewitness News that officers saw the woman continuously backing into the building and saw her ram into it.
The woman, who was not immediately identified, was previously arrested for vandalizing one of the restaurant's catering trucks, according to police.
Bailey Thompson was working next door at a bar and quickly realized the danger of what was happening. She rushed to tell her customers and co-workers to get out.
"She just was reversing and slamming into all the different walls," Thompson said. "So we share a wall with them, so she started slamming into our wall."
People flagged down police officers on patrol in the area. They surrounded the woman and then fired non-lethal rounds before taking her into custody.
No injuries were reported. The incident remains under investigation.