Malaspina was the co-owner of Pellegrini's Espresso Bar, which opened on Bourke Street 60 years ago and is credited with helping to kickstart Melbourne's cafe culture.
Witnesses report the 74-year-old went to his attacker's aid after noticing his auto was on fire before being set upon. Mr Malaspina was believed to have stopped to assist Ali when he was murdered. Ali was shot dead at point-blank-range by police on the scene.
A statement from Victoria Police said the family had made a decision to donate the "enormous amount of handsome flowers" received to nursing homes and hospitals to "brighten-up other's lives".
Authorities say more than a dozen terrorist attacks have been prevented in recent years, but several have taken place, including a cafe siege in Sydney in 2014 where two hostages were killed.
People leave flowers out the front of Pellegrini's Espresso Bar in respect for Sisto Malaspina.
The enduring cornerstone of Melbourne's CBD closed following Sisto's tragic death, which sparked an outpouring of emotion from Melburnians far and wide, all of whom heaped universal praise on the beloved restauranteur.
"We've been business partners since 1974 and we were friends for 10 years before that", said Pangrazio.
The cafe will serve a long black, Malaspina's favourite coffee order, to customers free all day. "We are very disappointed with the event. we extend our sympathy to everyone who was made a victim".
Ms Davie has launched an online crowd-funding campaign to help her brother pay his bills until he is well enough to return to work.
His staff left an emotive note clearly displayed in the window, calling Mr Malaspina "the best boss".
"It's not surprising he would step in to help others, we all wish him well", he said.
"That is why it is important for us to get as much information from the imams, from spouses, from family members, community members, council workers, people that might be interacting with those that might have changed their behaviours, where they think they've been radicalised", he was quoted by AAP as saying.
"As I say, the police and ASIO have been clear about this for a long time - you have a soft target, that is where you have a place of mass gathering, a mall, or a food court or somewhere else, you have somebody, as we've seen overseas with a vehicle, with a knife, an explosive device otherwise, it is very hard to deal with every one of those situations".
"We will love you forever and ever in our hearts".