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    January 31, 1998      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 of 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 
March 13, 1998 - 10,741,050


	
	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	INDEX

								Page No.
PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

	Unaudited Condensed Consolidated Balance Sheets -
	January 31, 1998 and July 31, 1997                      1 & 2 of 14

	Unaudited Condensed Consolidated Statements of Income-
	Three Months Ended January 31, 1998 and 1997               3 of 14
	
	Unaudited Condensed Consolidated Statements of Income-
	  Six Months Ended January 31, 1998 and 1997                4 of 14

	Unaudited Condensed Consolidated Statements of Cash Flows -
	Six Months Ended January 31, 1998 and 1997                  5 of 14

	Unaudited Condensed Consolidated Statement of Stockholders' Equity -
	January 31, 1998                                        6 & 7 of 14
	
	Notes to Unaudited Condensed Consolidated Financial 
	Statements - January 31, 1998                           8 & 9 of 14

Item 2. Management's Discussion and Analysis of 
	Financial Condition and Results of Operations    10,11 and 12 of 14


PART II.  OTHER INFORMATION

Item 1. Legal Proceedings                                          13 of 14
	
Item 4. Submission of Matters to a Vote of Shareholders            13 of 14

Item 5. Other Information                                          13 of 14

Item 6. Exhibits and Reports on Form 8-K                           13 of 14

Signatures                                                         14 of 14

	PART I. FINANCIAL INFORMATION
	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
	CONDENSED CONSOLIDATED BALANCE SHEETS
		
					       January 31,      July 31,
						  1998            1997   
					       (Unaudited)       (Note)

ASSETS
Current assets:
	
  Cash and cash equivalents                $11,721,399          $  4,585,633

  Receivables, principally                                 
   trade, less allowances
   for doubtful accounts and
   discounts of $1,584,000                              
   and $1,422,000                         40,339,772              37,554,412

  Inventories                             74,306,042              82,951,688
						       
  Prepaid expenses and other               3,166,848               2,457,221
	
	Total current assets             129,534,061             127,548,954

Property, plant and 
 equipment - at cost      $101,000,955              $98,609,466

  Less allowances for
   depreciation and
   amortization           (53,230,656)   47,770,299 (49,933,489)  48,675,977

Real estate held for 
 development or sale, at cost             2,203,264                7,635,427

Other assets and deferred charges        23,572,126               23,799,057

Excess of cost over net
 assets acquired                          9,625,034                9,670,55
				       $212,704,784             $217,329,966


Note:   The balance sheet at July 31, 1997 has been derived from the audited 
	financial statements at that date.

See notes to unaudited condensed consolidated financial statements.







	


	1 of 14



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



						  January 31,     July 31,
						     1998           1997
						  (Unaudited)      (Note)

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  
  Current portion of long-term debt             $  3,750,000   $   766,000
 
  Accounts payable                                15,264,241    13,590,697

  Accrued expenses                                 8,888,288    12,148,313

  Income taxes                                     1,924,488     1,957,788
	
     Total current liabilities                    29,827,017    28,462,798

Long-term debt, excluding current portion         97,036,837   106,065,753

Other non-current liabilities                      2,794,268     3,265,078

Deferred income taxes                              7,655,000     7,655,000

Stockholders' equity:
  Common stock, par value $.25 per share;
    Authorized 50,000,000 shares:
    Issued 11,216,572 and 11,211,068 shares        2,804,143     2,802,767
  Additional paid-in-capital                      51,397,859    51,357,008
  Retained earnings                               29,602,508    25,349,146
  Cost of 475,522 shares in treasury              (6,573,719)   (6,573,719)
  Deferred compensation under stock bonus
    plan and employees' stock ownership plan      (1,839,129)   (1,053,865)
	  Total stockholders' equity              75,391,662    71,881,337

						$212,704,784  $217,329,966


Note:   The balance sheet at July 31, 1997 has been derived from the audited
	financial statements at that date.

See notes to unaudited condensed consolidated financial statements.








		

	2 of 14

	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
	 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
										


					    Three Months Ended January 31,
					      1998                    1997
Revenues:
  Net sales                            $102,124,053             $ 84,242,490
  Rentals from real estate                  551,135                  524,969
					102,675,188               84,767,459
		   
Cost and expenses:                                                       
  Cost of sales                          75,594,751               58,455,236 
  Selling, general and
    administrative expenses              21,720,183               21,114,737
  Expenses of real estate                   437,337                  444,179
					 97,752,271               80,014,152
     Operating profit                     4,922,917                4,753,307

Interest income                             179,610                  360,156
Gain on sale of real estate                                        1,281,698

Interest expense                         (1,942,453)              (2,126,938)
Other (deductions)/income - net              (2,302)                   1,964

    Income before income taxes            4,439,470                2,988,489
Income taxes                              1,754,000                1,240
    Net income                           $2,685,470               $1,748,489
	 
Income per share:                                                           
    Basic                                      $.26                     $.17
  
    Diluted                                    $.17                     $.13





See notes to unaudited condensed consolidated financial statements.









3 of 14
		  
			 
	
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
	 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
										

					   Six Months Ended January 31,
					    1998                 1997
Revenues:
  Net sales                           $210,399,348         $166,819,000
  Rentals from real estate               1,065,714            1,047,853
				  
				       211,465,062          167,866,853
		   
Cost and expenses:                                                       
  Cost of sales                        157,129,834          117,610,436 
  Selling, general and
    administrative expenses             43,698,026           40,355,556
  Expenses of real estate                  830,889              868,477
				       201,658,749          158,834,469
     Operating profit                    9,806,313            9,032,384

Interest income                            241,686              678,590
Gain on sale of real estate                                   1,281,698
Interest expense                        (4,132,047)          (4,266,407)
Other (deductions)/income - net            (36,289)              18,482

    Income before income taxes           7,161,361            5,463,049
Income taxes                             2,908,000            2,264,000
    Net income                          $4,253,361           $3,199,049
	 
Income per share:      
    Basic                                     $.41                 $.31
  
    Diluted                                   $.29                 $.24





See notes to unaudited condensed consolidated financial statements.









4 of 14
	







CHOCK FULL O'NUTS CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

						Six Months Ended January 31,
						   1998               1997
Operating Activities:
 Net income                                    $ 4,253,361         $ 3,199,049
 Adjustments to reconcile net income    
   to net cash provided by
   operating activities:
  Depreciation and amortization of 
  property,plant and equipment                   3,297,167           3,536,706
  Amortization of deferred compensation and
   deferred charges                              2,181,653           2,172,602
  Gain on sale of real estate                   (1,281,698)
  Other, net                                      (887,074)           (237,266)
  Changes in operating assets and liabilities:

    (Increase) in accounts receivable           (2,947,557)         (3,702,554)
     Decrease in inventory                       8,645,646           2,345,396
    (Increase)/decrease in prepaid expenses       (700,768)            459,566
    (Decrease) in accounts payable, accrued
      expenses and income taxes                 (1,619,781)         (2,416,856)
NET CASH PROVIDED BY OPERATING ACTIVITIES       10,940,949           5,356,643
Investing Activities:
 Proceeds from sale of real estate               6,685,941
 Acquisition of business                        (5,746,230)
 Purchases of marketable securities                 (8,859)            (34,026)
 Purchases of property, plant and equipment     (2,391,489)         (2,826,088)
NET CASH PROVIDED BY/(USED IN)INVESTING 
 ACTIVITIES                                      4,285,593          (8,606,344)
Financing Activities:
 (Payments of)/proceeds from long-term debt, 
  net                                           (6,001,916)          2,491,601
 (Advances to)/proceeds from co-packer, net     (1,088,860)          1,269,346
 Loan to employees' stock ownership plan        (1,000,000)                  
NET CASH (USED IN)/PROVIDED BY FINANCING 
 ACTIVITIES                                     (8,090,776)          3,760,947 
 Increase in Cash and Cash Equivalents           7,135,766             511,246
 Cash and Cash Equivalents at Beginning 
  of Period                                      4,585,633          16,293,783
 Cash and Cash Equivalents at End of Period    $11,721,399         $16,805,029


See notes to unaudited condensed financial statements.







       










5 of 14


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, 1997                   11,211  $2,803  476     $6,574
Net income 
Conversion of debentures                        6       1
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization        
    Loan to employees' stock                            
      ownership plan                                  
Balance at January 31, 1998                 11,217  $2,804  476     $6,574

				








See notes to unaudited condensed consolidated financial statements.




























6 of 14

	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, 1997                $1,054        $51,357      $25,349
Net income                                                           4,254
Conversion of debentures                                   41      
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:                       
    Amortizatization                      (215)
    Loan to employees' stock                   
     ownership plan                      1,000                                
Balance at January 31, 1998             $1,839        $51,398        $29,603  





See notes to unaudited condensed consoliated financial statements.































							7 of 14

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

	January 31, 1998
(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 and six months ended 
	January 31, 1998 and 1997 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, 1997.


(B)     In 1997, the Financial Accounting Standards Board issued Statement of 
	Finacial Accounting Standards No. 128, Earnings per Share. Statement 
	128 repaced the previously reported primary and fully diluted earnings 
	per share with basic and diluted earnings per share.  Unlike primary 
	earnings per share, basic earnings per share excludes any dilutive 
	effects of options, warrants, and convertible securities. Diluted 
	earnings per share is very similar to the previously reported fully 
	diluted earnings per share.  All earnings per share amounts for all 
	periods have been presented, and where necessary, restated to conform 
	to the Statement 128 requirements.

	Basic per share data is based on the weighted average number of common 
	shares outstanding of 10,350,000 and 10,373,000 for the three and six 
	months ended January 31, 1998, respectively, and 10,370,000 and 
	10,357,000 for the three and six months ended January 31, 1997, 
	respectively. Diluted per share data, assuming conversion of 
	debentures, is based on 22,082,000 and 22,121,000 shares outstanding 
	for the three and six months ended January 31, 1998, respectively, 
	and 22,190,000 and 22,177,000 shares outstanding for the three and 
	six months ended January 31, 1997, respectively. 

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

				      January 31,       July 31,
					1998             1997
	Finished goods               $47,759,421     $41,747,129
	Raw materials                 20,260,156      36,412,728     
	Supplies                       6,286,465       4,791,831 
				     $74,306,042     $82,951,688

(D)     Under the Company's amended and restated revolving credit and term 
	loan agreements (collectively the "Loan Agreements") with Fleet Capital 
	Corporation 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 
	November 30, 1998 may not exceed $40,000,000 and after such date may 
	not exceed $20,000,000.  Interest (8.5% at January 31, 1998) on all 
	such loans is equal to the prime rate or at the Company's option the 
	London Interbank Offering Rate plus 1.75%, 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 ($3,000,000 at January 31, 1998) 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 
					  8 of 14

	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 $1,268,000.

(F)     On November 19, 1997, the Company sold one of its downtown Manhattan 
	properties for approximately $6,900,000.  The sale resulted in a 
	pre-tax gain of $1,282,000 or on an after tax basis approximately 
	$750,000, $.07 per basic share and $.03 per diluted share. The proceeds 
	from the sale were used to reduce outstanding bank indebtedness.


























							
















						9 of 14

	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 operations during the periods included 
in the accompanying unaudited condensed consolidated statements of operations.


In January 1997, the Company acquired substantially all of the assets and 
assumed substantially of the liabilities of Ireland Coffee and Tea Company 
("Ireland"). The business of Ireland consists of roasting and distributing 
coffees to hotels, restaurants and institutions on the East Coast.

Net sales from beverage products increased to $101,275,000 or 21% for the 
three months ended January 31, 1998 compared to $83,393,000 for the comparable 
period of the prior year. The increase was primarily due to increases in the 
average selling price of coffee and to a lesser extent a 12.3% increase in 
coffee pounds sold. Operating profit from beverage products was $5,292,000 
an increase of 2% for the three months ended January 31, 1998 compared to the 
prior year's comparable period. The increase for the three months resulted 
primarily from small increases in gross margins, partially offset by small 
increases in selling, general and administrative expenses. Increased gross 
margins were primarily due to increased pounds sold, partially offset by an 
increase in the average cost of green coffee greater than the increase in 
the average selling price of coffee. During the three months ended January 
31, 1998 prices of green coffee ranged from a high of $1.88 to a low of 
$1.44 per pound. Selling, general and administrative expenses increased 
slightly, primarily due to increased salaries and advertising, partially 
offset by decreased coupon costs. 

Net sales from beverage products increased to $208,543,000 or 26% for the 
six months ended January 31, 1998 compared to $165,150,000 for the comparable 
period of the prior year. The increase was primarily due to increases in 
the average selling price of coffee and to a lesser extent a 9.6% increase 
in coffee pounds sold. Operating profit from beverage products was 
$10,490,000 an increase of 7% for the six months ended January 31, 1998 
compared to the prior year's comparable period. The increase for the six 
months ended January 31, 1998 resulted primarily from increased gross 
margins and to a lesser extent the operations of Ireland, partially offset 
by increased selling, general and administrative expenses. Increased gross 
margins were primarily due to increased coffee pounds sold and increased 
sales of allied products. The increase in the average selling price of 
coffee during the six months approximated the increase in the average 
cost of green coffee. During the six months ended January 31, 1998 prices 
for green coffee ranged from a high of $2.11 to a low of $1.44 per pound. 
Selling, general and administrative expenses increased primarily due to 
increased salaries, advertising and delivery costs, partially offset by 
reduced coupon costs. Certain of the Company's selling expenses vary with 
the number of pounds sold, therefore selling expense has increased in 1998 
compared to the 1997 periods.

Quikava's growth plans involve franchising the concept, thereby generating 
initial franchise fees and continuing royalty income to cover headquarters' 
expenses. Franchise operated shop sales were $1,379,000 for six months ended 
January 31, 1998 versus $1,157,000, an increase of 19%, in the comparable 
1997 period.  Quikava company-operated shop sales were $1,590,000 for the 
six months ended January 31, 1998 compared to $1,501,000 in the comparable 
period of the prior year. Company operated shops generate potential 
franchise interest and gain exposure to the concept. Operating losses 
amounted to $919,000 for the six months ended January 31, 1998 compared 
to $958,000 in the comparable period of the prior year. The operating 
losses consist primarily of headquarters' expenses (primarily
			     10 of 14

payroll and related expenses for franchising infrastructure) and shop 
level losses, partially offset by initial franchise fee income in 1998 
and  royalty income on franchisee sales. The operating losses for the 
three months ended January 31, 1998 and 1997, respectively, were $484,000 
and $520,000.

Net income was $2,685,000 ($.26 per basic share and $.17 per diluted share) 
for the three months ended January 31, 1998, compared to $1,748,000 
($.17 per basic share and $.13 per diluted share) for the comparable period 
of the prior year. The difference was primarily due to the gain on sale of 
real estate and to a lesser extent increased operating profits from beverage 
products and decreased interest expense (resulting from reduced amounts of 
debt outstanding), partially offset by decreased interest income (resulting 
from decreased invested funds) and increased income taxes. Increased income 
taxes are primarily attributable to increased income before income taxes.
						
Net income was $4,253,000 ($.41 per basic share and $.29 per diluted share) 
for the six months ended January 31, 1998, compared to $3,199,000 
($.31 per basic share and $.24 per diluted share)  for the comparable 
period of the prior year. The difference was primarily due to the gain on 
sale of real estate ($.07 per basic share and $.03 per diluted share) and 
increased operating profits from beverage products and to a lesser extent 
reduced interest expense (resulting from reduced amounts of debt outstanding 
in the second quarter), partially offset by decreased interest income 
(resulting from decreased invested funds) and increased income taxes 
(attributable to increased income before income taxes).


Liquidity and Capital Resources

As of January 31, 1998, working capital was approximately $100,000,000 
and the ratio of current assets to current liabilities was 4.3 to 1.

As of January 31, 1998, the Company had unused borrowing capicity of 
approximately $34 million under its credit facilities of $40 million 
with Fleet Capital Corporation and The Chase Manhattan Bank 
(see Notes D and F of Notes to Unaudited Condensed Consolidated 
Financial Statements).

The Company plans on expanding its Quikava franchised operations, which 
are curently operating in 27 locations. The sales of Company operated and 
franchised units are not material to the Company's consolidated sales. 
Total Quikava store level opertions are not currently profitable but are 
being partially offset by franchise fee and royalty income and, in addition, 
Quikava headquarters' expenses of approximately $1,200,000 on an annual 
basis are not being absorbed.

The Company believes that its cash flow from operations, its cash equivalents 
and funds available under 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.

Green Coffee Market

Coffee is one of the leading commodities traded on futures exchanges. Supplies 
fluctuate with the weather and prices have been volatile. The supply and 
price is affected by multiple factors, such as weather, politics and 
economics in the coffee producing countries, many of which are lesser 
developed nations. While coffee trades primarily on the futures market, 
coffee of the quality level sought by the Company can trade on a negotiated 
basis at a substantial premium above commodity coffee pricing, depending 
upon the supply and demand at the time of purchase.  
				    
The International Coffee Organization, through the imposition of export quotas 
agreed upon by consumer and producer member nations, has in the past 
attempted to maintain the commodity prices of green coffees.  In July 1989 
the refusal of certain countries to 
			      11 of 14

participate in the quota system resulted in the dissolution of the agreement 
and a drop in the prices of coffees.  In August 1993, 21 coffee-producing 
countries formed a new cartel, the Association of Coffee Producing Countries 
("ACPC") and announced plans to cut the supply of coffee by 20% beginning 
October 1, 1993 in an attempt to raise world coffee prices.  The effect of 
the ACPC on coffee prices is difficult to determine in light of the dramatic 
price increases resulting from the 1994 frosts in Brazil discussed below. 
Nonetheless, the ACPC met in November 1994 and resolved to sustain green 
coffee bean prices.  In January 1996, the ACPC agreed to extend its current 
limitations on the supply of green coffee upon their expiration in June 1996 
through the 1996/1997 green coffee year. 
No further actions have been taken by the ACPC subsequent to that date. 
The Company is unable to predict whether the ACPC will be successful in 
achieving its goals. Based on published statistics the supplies of green 
coffees held by consumers (roasters and buyers) are currently, near 
historically low levels.  

Brazil, the world's largest coffee producer, experienced frosts in June and 
July of 1994 which reportedly damaged approximately 40% of the green coffee 
bean crop.  The announcement of the Brazilian frost damage caused a 
substantial increase in green coffee bean prices and other coffee-product 
prices worldwide.  The Company purchases a modest amount of its green coffee 
beans from Brazil.  In the third and fourth quarter of 1994 the Company 
experienced a significant increase in the price of green coffee beans which 
carried over into the first three quarters of 1995. The Company was not able 
to immediately pass through to customers all of the price increases in the 
third and fourth quarters of 1994 and the first quarter of 1995 following 
the significant increase in green coffee bean prices that resulted from 
the Brazilian frosts.  Subsequent to such period through January 1997, 
the Company's green coffee purchases and commitments returned to pricing 
levels closer to those that existed prior to the June and July 1994 
Brazilian frosts. In February 1997, green coffee bean 
prices began to rise significantly reaching a high of $3.15 per pound in 
May 1997.  This bull market was somewhat unique in that the fundamental 
cause was very tight stocks of arabica coffee in consuming countries.  
Historically, bull markets have been the direct 
result of weather developments in Brazil, specifically cold weather and 
drought that damages the following crop.  Subsequent to May 1997, the green 
coffee market has been in the $2.11 to $1.44 range.

The Company is unable to predict weather events in particular countries 
that may adversely affect coffee supplies and price. Except for late 1994 
and early 1995, the Company generally has been able to pass green coffee 
price increases through to its customers, thereby maintaining its gross 
margins. The Company cannot predict whether it will be able to pass green 
coffee price increases through to its customers in full in the future.

A significant portion of the Company's green coffee supply is contracted 
for future delivery, generally between three and twelve months forward 
(with declining percentages of the supply being subject to future contracts 
in the latter portions of each year), to ensure both an adequate supply 
and reduced risk of short-term price fluctuations. Green coffee is a large 
market with well-established brokers, importers and warehousemen though which 
the Company manages its requirements.  In addition to forward purchases, 
the Company keeps physical inventory in each of its production facilities 
and third-party warehouses representing anywhere from four to ten weeks of 
supply requirements. All coffee purchase transactions are in U.S. dollars, 
the industry's standard currency. The Company believes that it is not 
dependent upon any one importer or broker for its supply of green coffee 
beans from any particular country.

Retail Customers are very price-sensitive about the purchase of coffee in 
supermakets and club stores. When retail prices increase dramatically, 
takeaway declines and consumers switch to less expensive brands and high 
yield roasts. Likewise, FoodService Customers in times of price increase 
tend to stretch the use of inventory.

						12 of 14

Part II.   Other Information

Item 1.    Legal Proceedings - None

Item 4.    Submission of Matters to a Vote of Security Holders

At the Company's annual meeting of shareholders' held on December 12, 1997, 
the Company's shareholders' elected Mark A. Alexander 
(8,127,893 for 1,398,654 against), Jerry Columbus 
(8,131,830 for 1,394,717 against), Howard M. Leitner 
(8,129,473 for 1,397,074 against) and Henry Salzhauer 
(8,500,000 for 1,000,000 against) as directors for a term of three years 
and ratified the appointment of independent auditors for 1998 with a vote 
of 9,264,381 for, 213,286 against and 48,873 abstained.

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; the availability 
of green coffee; green coffee prices; competition; success of operating 
initiatives; development and operating costs, including green coffee prices; 
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
























						13 of 14
						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)





March 12, 1998
Marvin I. Haas
President and Chief Executive Officer



March 12, 1998 
Howard M. Leitner
Senior Vice President and 
Chief Financial and Accounting Officer















 




















14 of 14