Degraves Street is the most concentrated expression of Melbourne's laneway culture: a narrow covered lane running between Flinders Street and Flinders Lane, lined on both sides with cafe tables that leave barely enough room for pedestrians to pass between them. The espresso bars here open early and stay busy all day, with baristas who have been working the same machines for years and know exactly what their regular customers want.
The lane itself is cobblestoned and roofed with corrugated iron, which means it works in all weather. Cafe Segovia and Degraves Espresso Bar are the longest-established options; both have the reliable flat whites and toasted sandwiches that define the format. At the northern end, the lane opens into the Manchester Unity Building arcade. The surrounding block, including Centre Place to the north, is worth exploring for its concentration of small restaurants and bars. Degraves Street is at its best on weekday mornings, before the tourist crowds arrive — though even then, it is genuinely busy with people who work in the city and stop here every morning.