Immigration enforcement officers questioned staff at China Boulevard in Smugglers Way, Battersea, on Wednesday, to establish if they could work and live in the UK.
Three men and two women were arrested as they were allegedly found to be in the UK without visas.
A Home Office spokesman said two of the men have been detained pending removal from the UK.
The other three people arrested have been ordered to report to immigration enforcement while steps are taken to remove them from the country, the spokesman added.
Graham Blackwood, head of the south London immigration enforcement team, said: “Businesses in south London which employ illegal workers should be under no illusions; our officers carry our regular operations and those which attempt to cheat the rules will face stiff financial consequences.
“Illegal working is not victimless and can involve the exploitation of some of society’s most vulnerable people.
“It also defrauds the treasury of vital funds, undercuts businesses that provide an honest trade and cheats legitimate job seekers out of employment opportunities.”
The restaurant was handed a notice warning that it could be fined up to £20,000 per illegal worker arrested unless it proves thorough document checks were conducted.
The Standard has approached the restaurant for comment.
Source: Standard UK