Kerry Kounnapis Architecture has designed the interiors of Palace Coffee in Melbourne, Australia.

Palace Coffee is a compact espresso bar tucked into a Melbourne laneway, designed as a standing bar with no seating.

The architecture is recessed from the street to create a threshold where queuing, waiting and conversation spill onto the street.

A sculptural oxide-red steel service window operates as facade and worktop, establishing direct interaction between barista and street.

Referencing familiar elements of iconic Melbourne buildings, the interior combines spotted gum timber, a back-lit fibreglass ceiling and a powder-blue wall.

Despite its modest size, Palace Coffee comfortably serves close to 800 coffees a day while maintaining a warm and social atmosphere.