On any other day, clients at the charity's Oznam Community Centre approach the bain-marie with trays in hand but yesterday they received the "silver service". A fancy meal served to them at the tables.

They were treated to ham, turkey and beef, mixed vegetables, pudding and fruit salad.

It was hot work for the staff and volunteers. And there was more demand for tables than at a hipster cafe serving smashed avocado and feta on sourdough on a Sunday morning.

The queue rolled out of the room and onto Abbotsford Street in North Melbourne but everyone who arrived for a meal was fed in good cheer.

VincentCare chief executive John Blewonski said the charity served meals to 248 people, compared with up to 180 on normal days.

He said VincentCare spends up to $400,000 a year on feeding its clients at the community centre but volunteer labour is also crucial to running the program.

The annual lunch has become part of Mr Blewonski's own family Christmas Day tradition. "I enjoy being here but I also think it's important if my staff are giving up their Christmas Day that I'm with them as well," he said. "I couldn't sit at home and know this is going on and not be part of it. It's fun too."

Justin, a regular at the centre, had stopped in for a Christmas Day feed. "I've got a lot of friends who come here," he said. "It's a good place to meet up with people."

Across town in St Kilda, the Garage Espresso cafe was also serving gourmet meals to the homeless and anyone who wanted to stop by.

Tables laden with salads and lasagne sat outside the Chapel Street cafe while a barbecue sizzled with meat skewers and sausages.

Inside there was ham, turkey, more salads and sweets. Children from St Kilda Primary School across the road had prepared an impressive gingerbread house that seemed almost a shame to eat.

Cafe owner Sergio Grigor said he planned to make the lunch a Christmas tradition after hosting a similar event last year. This year he catered for about 200 people.

Mr Grigor said he had experienced his own struggles and bouts of homelessness. "I think I understand poverty," he said. "I've had my ups and downs."

He said he had collected hundreds of gifts to give away, some with a luxurious touch, including organic soaps and towels. "I wouldn't give someone something I wouldn't use myself."

In Fitzroy, newly appointed Housing Minister Martin Foley helped serve lunch and hand out gifts at the Christmas Day meal prepared by St Mary's House of Welcome. Mr Foley said he was honoured to serve lunch on the day alongside the volunteers.