Design Details: The Recessed Sculptural Bar of Palace Coffee in Melbourne

Daily Coffee News Staff | November 12, 2026

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Design Details: Palace Coffee

Project: Palace Coffee
Location: Melbourne, Australia
Area: 43 square meters (463 square feet)
Completed: 2024
Program: Standing-room espresso bar
Design: Kerry Kounnapis Architecture Practice
Director and architect: Kerry Kounnapis
Lighting consultant and supplier: Solstice Lighting
Builder: Tribeca Design
Steel fabrication: Severn Smith Steel
Coffee equipment: La Marzocco
Photography: Tom Ross

A recessed frontage and sculptural serving window connect Palace Coffee, a 43-square-meter standing-room espresso bar, to the narrow Melbourne laneway outside.

Located at the base of Monaco House at 22 Ridgway Place, the shop faces the fortress-like brick wall of the Melbourne Club. The compact interior has no seats, offering standing room only.

Kerry Kounnapis Architecture Practice led the design of the space, which is recessed from the street to create space for customers to wait and chat. The area acts as a threshold between the lane and the interior, making the line of customers part of the shop’s street presence.

“The people waiting become the symbol for passers-by, to capture their curiosity and lure them towards Palace Coffee,” KKAP said in a project description shared with DCN. “The spaces bleed into one another, supercharging the laneway with people.”

Palace opens only on weekdays, offering workers a brief pause during the standard 9-to-5 workday.

“Although only small in footprint, it’s known to serve hundreds of cups of silky-smooth coffee each day,” KKAP said. “For a space so compact, it punches above its weight.”

The sculptural serving window functions as both the facade and a work surface. A vitrine filled with pastries creates a natural takeaway service point, while sliding glass doors form a large opening intended to support the first interaction between staff and customers.

“Detailed like a Donald Judd sculpture, the bench is seamless between the interior and exterior, a common design device adopted by the practice,” KKAP said.

Customers enjoying their coffee in-house receive their coffee at higher benches with a glass of sparkling water. Guests can lean against the counter with one foot on the footrest, following the quick, standing-service model associated with Milanese espresso bars.

The material palette draws from established Melbourne institutions. Oxide-red steel and spotted gum timber reference Pellegrini’s Espresso Bar, while a backlit fiberglass ceiling draws from the arcade of the Nicholas Building. A powder-blue wall was developed specifically for Palace.

“The back-lit fiberglass ceiling warms the interior, and the perforated spotted gum strips offer modulated form while allowing for concealment of building services,” KKAP said. “The built forms are intended to be familiar, as a direct reference to an unfolded box, so familiar in the everyday operations of this space.”

The Palace operators previously founded Burnside Coffee in Fitzroy. At the new shop, the architecture was designed to support the same emphasis on fast, familiar service and repeat interactions.

“The person taking your order is likely to remember your name and order when you next return, and if they forget the second time, it’s guaranteed they’ll memorise it by the third visit,” KKAP said. “That’s hospitality and that’s what builds community. The architecture has been designed to support and facilitate that.”