SECURITIES AND EXCHANGE COMMISSION

	Washington, D.C. 20549

	FORM 10-Q

	QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
	OF THE SECURITIES EXCHANGE ACT OF 1934



For Quarter Ended ___October 31, 1996     Commission File Number 1-4183



			  CHOCK FULL O' NUTS CORPORATION             
	(Exact Name of Registrant As Specified In Its Charter)



   New York                                                        13-0697025 
   (State or Other Jurisdiction of                        (I.R.S. Employer
    Incorporation or Organization)                       Identification No.)



   370 Lexington Avenue, New York, N.Y.                         10017   
 (Address of Principal Executive Offices)                   (Zip Code)


Registrant's Telephone Number, including Area Code     (212) 532-0300    
			Indicate by check mark whether the registrant (1)
			has filed all reports required to be filed by Section
			13 or 15 (d) of the Securities Exchange Act of 1934
			during the preceding 12 months (or for such shorter
			period that the registrant was required to file such
			reports), and (2) has been subject to such filing
			requirements for the past 90 days.

							  Yes   X       No 


No. of Shares of Common Stock ($.25 par value) outstanding as of 
December 12, 1996 - 10,735,546 



	

	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	INDEX

								   Page No.
PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

	Unaudited Condensed Consolidated Balance Sheets -
	October 31, 1996 and July 31, 1996                        1 & 2 of 10
	
	Unaudited Condensed Consolidated Statements of Operations-
	  Three Months Ended October 31, 1996 and 1995                3 of 10
	
	Unaudited Condensed Consolidated Statements of Cash Flows -
	Three Months Ended October 31, 1996 and 1995                  4 of 10

	Unaudited Condensed Consolidated Statement of Stockholders' Equity -
	  October 31, 1996                                        5 & 6 of 10
	
	Notes to Unaudited Condensed Consolidated Financial 
	Statements - October 31, 1996                                 7 of 10

Item 2. Management's Discussion and Analysis of 
	Financial Condition and Results of Operations             8 & 9 of 10


PART II.  OTHER INFORMATION

Item 1. Legal Proceedings                                             9 of 10

Item 5. Other Information                                             9 of 10

Item 6. Exhibits and Reports on Form 8-K                              9 of 10

Signatures                                                           10 of 10

	PART I. FINANCIAL INFORMATION
	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
	CONDENSED CONSOLIDATED BALANCE SHEETS
		
	October 31,     July 31,
	  1996            1996   
	(Unaudited)      (Note)

ASSETS
Current assets:
	
  Cash and cash equivalents                 $  24,002,989          $ 16,293,783

  Receivables, principally                                 
   trade, less allowances
   for doubtful accounts and
   discounts of $1,201,000                              
   and $1,133,000                            32,580,748              30,989,008

  Inventories                                53,138,734              59,637,802

  Investments in marketable securities, 
   at market (approximates cost)                159,593                 128,099
						       
  Prepaid expenses and other                  3,703,137               3,539,776
	
	Total current assets                113,585,201             110,588,468

Property, plant and 
 equipment - at cost      $  95,191,010                $ 93,683,328

  Less allowances for
   depreciation and
   amortization             (46,922,192)     48,268,818 (45,172,084) 48,511,244

Real estate held for 
 development or sale, at cost                 7,677,308               7,691,267

Other assets and deferred charges            25,202,085              26,976,132

Excess of cost over net
 assets acquired                              5,617,725               5,668,008
					   $200,351,137            $199,435,119


Note:   The balance sheet at July 31, 1996 has been derived from the audited 
	financial statements at that date.

See notes to unaudited condensed consolidated financial statements.







	1 of 10

			
	


CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS



						  October 31,     July 31,
						     1996           1996    
						  (Unaudited)      (Note)

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

  Accounts payable                              $ 12,937,623    $ 10,469,300

  Accrued expenses                                 7,035,284      11,346,483

  Income taxes                                     2,705,853       1,719,575
    
     Total current liabilities                    22,678,760      23,535,358

Long-term debt                                   105,424,891     105,235,468

Other non-current liabilities                      1,591,081       1,586,231

Deferred income taxes                              5,591,000       5,591,000

Stockholders' equity:
  Common stock, par value $.25 per share;
    Authorized 50,000,000 shares:
    Issued 11,211,068 shares                       2,802,767       2,802,767
    Additional paid-in-capital                    51,357,008      51,357,008
    Retained earnings                             18,885,314      17,434,755
    Cost of 475,522 shares in treasury            (6,573,719)     (6,573,719)
    Deferred compensation under stock bonus
      plan and employees' stock ownership plan    (1,405,965)     (1,533,749)
	  Total stockholders' equity              65,065,405      63,487,062 

						$200,351,137    $199,435,119


Note:   The balance sheet at July 31, 1996 has been derived from the audited
	financial statements at that date.

See notes to unaudited condensed consolidated financial statements.








		2 of 10

	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

						Three Months Ended October 31,
						    1996              1995
Revenues:
  Net sales                                     $ 82,576,510    $ 77,372,279
  Rentals from real estate                           522,884         546,842
	  
						  83,099,394      77,919,121
		   
Cost and expenses:                                                       
  Cost of sales                                   59,155,200      55,783,931  
  Selling, general and
    administrative expenses                       19,240,819      17,577,568
  Expenses of real estate                            424,298         368,556
						  78,820,317      73,730,055
    Operating profit                               4,279,077       4,189,066
Interest income                                      318,434         138,456

Interest expense                                  (2,139,469)     (2,266,021)

Other income - net                                    16,518          78,978 

    Income before income taxes                     2,474,560       2,140,479
									
Income taxes                                       1,024,000         787,000
    Income from continuing operations              1,450,560       1,353,479 
Discontinued operations, net of income tax             
  credits of $271,000                                                526,567
    Net income                                    $1,450,560      $  826,912
    
Income/(loss)per share:                                 
    Primary:                                                 
       Continuing operations                      $      .14      $      .13 
       Discontinued operations                                          (.05)
	 Net income                               $      .14      $      .08
  
    Fully diluted:
       Continuing operations                      $      .11      $      .11
	 Discontinued operations                                        (.03)
	 Net income                               $      .11      $      .08
 



See notes to unaudited condensed consolidated financial statements.







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	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


					       Three Months Ended October 31,
					       1996                    1995
Operating Activities: 
 Net income                                $ 1,450,560            $   826,912
 Adjustments to reconcile net income
   to net cash provided by/(used
   in) operating activities:
  Depreciation and amortization of                               
   property, plant and equipment             1,750,108              1,472,415
  Amortization of deferred compensation             
   and deferred charges                      1,091,923              1,187,403
  Other, net                                  (201,948)            (1,092,824)
  Changes in operating assets and liabilities:
 (Increase)/decrease in accounts receivable (1,659,740)             2,150,316
  Decrease in inventory                      6,499,068              3,132,918
 (Increase)/(decrease) in prepaid expenses    (163,361)             1,069,418
 (Decrease) in accounts payable,
   accrued expenses and income taxes          (856,598)           (10,026,015)
NET CASH PROVIDED BY/(USED IN)OPERATING 
ACTIVITIES                                   7,910,012             (1,279,457)
Investing Activities:
 Proceeds from sale and collection of principal
   of marketable securities                                         9,980,349
 Purchases of marketable securities            (31,494)           (11,939,661) 
 Purchases of property, plant and equipment (1,507,682)            (1,822,931)
NET CASH(USED IN)INVESTING ACTIVITIES       (1,539,176)            (3,782,243)
Financing Activities:       
 Proceeds from long-term debt, net             189,423              1,918,097
 Proceeds from co-packer                     1,148,947  
 Loan to employees' stock ownership plan                             (500,000) 
NET CASH PROVIDED BY FINANCING ACTIVITIES    1,338,370              1,418,097 
 Increase/(decrease)in Cash and 
  Cash Equivalents                           7,709,206             (3,643,603)
 Cash and cash equivalents at beginning
   of period                                16,293,783              8,386,620 
 Cash and Cash Equivalents at End of 
 Period                                    $24,002,989            $ 4,743,017 



See notes to unaudited condensed consolidated financial statements.

		
 
							4 of 10

							
	


	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY


						 Common Stock           
					Issued                 In Treasury
				   Shares  Amount            Shares   Amount
						 In Thousands         

Balance at July 31, 1996           11,211  $2,803             476     $6,574
Net income 
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization        
			
				      
Balance at October 31, 1996        11,211 $2,803              476     $6,574

				








See notes to unaudited condensed consolidated financial statements.





























	5 of 10


	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

						 Deferred
				  Compensation
				   Under Stock
				  Bonus Plan and     Additional
				 Employees' Stock    Paid-In       Retained
				   Ownership Plan    Capital       Earnings
						     In Thousands    

Balance at July 31, 1996                $1,534          $51,357   $17,435
Net income                                                          1,450
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:                       
    Amortization                         (128)                      
					     
Balance at October 31, 1996            $1,406          $51,357    $18,885 





See notes to unaudited condensed consoliated financial statements.

































	6 of 10

	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
	NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	October 31, 1996
(A)     The accompanying unaudited condensed consolidated financial statements 
have been prepared in accordance with generally accepted accounting principles 
for interim financial information and with the instructions to Form 10-Q and 
Article 10 of Regulation S-X.  Accordingly, they do not include all of the 
information and footnotes required by generally accepted accounting 
principles for complete financial statements.  In the opinion of management, 
all adjustments (consisting of normal recurring accruals) considered 
necessary for a fair presentation have been included.  Operating results for 
the three months ended October 31, 1996 and 1995 are not necessarily 
indicative of the results that may be expected for a full fiscal year.  For 
further information, refer to the consolidated financial statements and 
footnotes thereto included in the Company's annual report on Form  10-K for 
the year ended July 31, 1996.

(B)     Primary per share data is based on the weighted average number of 
common shares outstanding of 10,736,000 for the three months ended October 31, 
1996 and 1995.  Fully diluted per share data, assuming conversion of 
debentures, is based on 22,556,000 shares outstanding for the three months 
ended October 31, 1996 and 1995.  

(C)     Inventories are stated at the lower of cost (first-in, first-out) or 
market. The components of inventory consist of the following:

				October 31,     July 31,
				  1996            1996     
	Finished goods         $32,868,186     $35,715,505
	Raw materials           15,310,369      18,931,470     
	Supplies                 4,960,179       4,990,827 
			       $53,138,734     $59,637,802

(D)     Under the Company's amended and restated revolving credit and term 
loan agreements (collectively the "Loan Agreements") with Fleet Bank, N.A. 
and The Chase Manhattan Bank (the "Banks"), the Company may, from time to 
time, borrow funds from the Banks, provided that the total principal amount 
of all such loans outstanding through December 31, 1996 may not exceed 
$40,000,000 and after such date may not exceed $20,000,000.  Interest 
(8.25% at October 31, 1996) on all such loans is equal to prime rate, 
subject to adjustment based on the level of loans outstanding. Outstanding 
borrowings under the Loan Agreements may not exceed certain percentages of 
and are collateralized by, among other things, the trade accounts receivable 
and inventories, and substantially all of the machinery and equipment and 
real estate of the Company and its subsidiaries.  All loans made under the 
term loan agreement ($10,000,000 at October 31, 1996) are to be repaid in 
December 1999. Outstanding loans under the revolving credit agreements are 
to be repaid in December 1999. Pursuant to the terms of the Loan Agreements, 
the Company and its subsidiaries, among other things, must maintain a minimum 
net worth and meet ratio tests for liabilities to net worth and coverage of 
fixed charges and interest, all as defined. The Loan Agreements also provide, 
among other things, for restrictions on dividends (except for stock dividends) 
and require repayment of outstanding loans with excess cash flow, as defined.

(E)     Prepaid expenses and other on the unaudited condensed consolidated 
balance sheets includes deferred income taxes of $933,000.

 



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	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
	AND RESULTS OF OPERATIONS


Certain statements in the "Management's Discussion and Analysis of Financial 
Condition and Results of Operations" and elsewhere in this Form 10-Q 
constitute "forward-looking statements" within the meaning of the Reform Act.  
See Other Information Item 5.

Operations
	
	The following is Management's discussion and analysis of certain 
	significant factors that have affected the Company's continuing 
	operations during the periods included in the accompanying unaudited 
	condensed consolidated statements of operations.

	Net sales increased $5,204,000 or 7% for the three months ended 
	October 31, 1996, compared to the comparable period of the prior year. 
	The increase in net sales was due to a 34% increase in coffee pounds 
	sold partially offset by a decrease in the average selling price of 
	coffee.

	Operating profits from food products were $4,279,000, an increase of 
	2% for the three months ended October 31, 1996, compared to $4,189,000 
	for the comparable period of the prior year. The increase resulted 
	primarily from increased gross margins partially offset by increased 
	selling, general and administrative expenses.  Increased gross margins 
	were due to increased coffee pounds sold and a decrease in the average 
	selling price of coffee less than the decrease in the average cost of 
	green coffee.  During the three months ended October 31, 1996 prices 
	for green coffee ranged from a high of $1.36 to a low of $1.04 per 
	pound.  Selling, general and adminstrative expenses increased primarily
	due to increased advertising, brokerage and coupon costs and salaries.

	Income from continuing operations was $1,451,000 or $.14 per share for 
	the three months ended October 31, 1996, compared to $1,353,000 or $.13
	per share for the comparable period of the prior year. The difference 
	was primarily due to increased operating profits, increased interest 
income and reduced interest expense, partially offset by increased income taxes
	The prior year also included a loss from discountinued operations of 
	$527,000 or $.05 per share.

Liquidity and Capital Resources

	As of October 31, 1996, working capital was approximately $91,000,000 
	and the ratio of current assets to current liabilities was 
	approximately 5.0 to 1.

	As of October 31, 1996, the Company had unused borrowing capacity of 
	approximately $29 million under its credit facilities of $40 million 
	with Fleet Bank, N.A. and The Chase Manhattan Bank.

	The Company plans on expanding its Quikava, company operated and 
	franchised operations, which in total are currently operating in 15 
	locations. The sales of these operations are not material to the 
	Company's consolidated sales. Total Quikava store level operations are
	not currently profitable, primarily due to pre-opening expenses. In 
	addition, Quikava headquarters' expenses in excess of $1,000,000 on an
	annual basis are not being absorbed.

	
							




							8 of 10




	
		

   The Company believes that its cash flow from operations and its amended and 
   restated revolving credit and term loan agreements with its Banks provide 
   sufficient liquidity to meet its working capital, expansion and capital 
   requirements.

	
							
Part II.   Other Information

Item 1.    Legal Proceedings - None

Item 5.    Other Information


Certain statements under the caption "Management's Discussion and Analysis of 
Financial Condition and Results of Operations" and elsewhere in this Form 10-Q 
constitute "forward looking statements" within the meaning of the Reform Act.  
Such forward looking statements involve known risks, uncertainties, and other 
factors which may cause the actual results, performance or achievements of the 
Company to be materially different from any future results, performance or 
achievements expressed or implied by such forward looking statements.  Such 
factors include, among others, the following: general economic and business 
conditions; competition; success of operating initiatives; development and 
operating costs; advertising and promotional efforts; brand awareness; the 
existence of or adherence to development schedules; the existence or absence 
of adverse publicity; availability, locations and terms of sites for Quikava 
outlets; changes in business strategy or development plans; quality of 
management; availability, terms and deployment of capital; business 
abilities and judgment of personnel; availability of qualified personnel; 
labor and employee benefit costs; changes in or the failure to comply with 
government regulations;construction costs and other factors.

Item 6.    Exhibits and Reports on Form 8-K

	     a)  Exhibits - Financial Data Schedule - Exhibit 27 - see below

	     b)  Reports on Form 8-K - none

















							9 of 10

							





SIGNATURES      

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant duly caused this Report of Form 10-Q to be signed on its behalf 
by the undersigned, thereunto duly authorized.              
		
		
				CHOCK FULL O' NUTS CORPORATION
					(Registrant)
					
					
December 12, 1996               Marvin I. Haas
				President and Chief Executive Officer

December 12, 1996               Howard M. Leitner
				Senior Vice President
				Chief Financial and Accounting Officer

				
								
								
								
								
					      
							      















 








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