A man has been arrested after crashing a stolen ute into a number of shopfronts on the busy cafe precinct of Rathdowne Street in Carlton, in Melbourne's inner north on Saturday morning.

The man drove the vehicle south down the footpath about 11:45am, sending chairs and tables flying.

Diners and shoppers ran for their lives and one woman was injured.

ABC reporter Damian McIver said restaurant patrons fled as the vehicle crashed into outdoor tables lining the street.

"We heard a noise. People were screaming stay inside," he said.

"We went outside saw about 150 metres up where the car had slammed into cafe.

"There are chairs and tables all over the place, windows smashed.

"There's a book store with a table outside and the books are scattered everywhere, some downpipes torn down as well."

The driver of the ute then turned and drove down a footpath on the north side of the street and crashed into the nearby Paragon Cafe.

An employee said the front of the shop was destroyed, the window was shattered and tables and chairs snapped in half.

An off-duty police officer was assaulted as he tried to arrest the man.

By this time an officer had arrived on the scene the North Melbourne man, who is in his 20s, was arrested.

Up to 100 people were in the area at the time of the incident and many left the scene without speaking to police.