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, 1999      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 12, 1999 - 10,830,922


	
	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	INDEX

                                                                        
PART I.  FINANCIAL INFORMATION

Item 1.	Financial Statements

	Unaudited Condensed Consolidated Balance Sheets -
        January 31, 1999 and July 31, 1998                         1 & 2 of 16

	Unaudited Condensed Consolidated Statements of Income-
        Three Months Ended January 31, 1999 and 1998                   3 of 16
                                                                             
	Unaudited Condensed Consolidated Statements of Income-
          Six Months Ended January 31, 1999 and 1998                   4 of 16
	
	Unaudited Condensed Consolidated Statements of Cash Flows -
          Six Months Ended January 31, 1999 and 1998                   5 of 16
	
	Unaudited Condensed Consolidated Statement of Stockholders' Equity -
        January 31, 1999                                          6 & 7 of 16
	
	Notes to Unaudited Condensed Consolidated Financial 
        Statements - January 31, 1999                              8 & 9 of 16

Item 2.	Management's Discussion and Analysis of 
  	Financial Condition and Results of
          Operations                               10, 11, 12, 13 and 14 of 16


PART II.  OTHER INFORMATION

Item 1. Legal Proceedings                                             15 of 16

Item 4. Submission of Matters to a Vote of Shareholders               15 of 16
 
Item 5. Other Information                                             15 of 16

Item 6. Exhibits and Reports on Form 8-K                              15 of 16

Signatures                                                            16 of 16

                         PART I. FINANCIAL INFORMATION
                 CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS
		
                                            January 31,              July 31,
                                              1999                     1998
ASSETS                                     (Unaudited)                (Note)
Current assets:
  Cash and cash equivalents                $ 9,915,454             $ 6,148,068
  Receivables, principally
     trade, less allowances
   for doubtful accounts and
   discounts of $1,328,000                  37,430,040              40,559,581
   and $1,329,000
   
  Inventories                               62,866,428              60,641,309

  Prepaid expense and other                  5,332,259               3,636,446
      Total current assets                 115,544,181             110,985,404

Property, plant and
  equipment - at cost         $110,858,492             $105,327,427
    Less allowances for
      depreciation and
      amortization             (9,577,756) 51,280,736  (56,346,824) 49,025,603

Real estate held for
 development or sale, at cost                2,147,424               2,175,344

Other assets and deferred
 charges                                    21,858,066              23,223,366

Excess of cost over net
 assets acquired                            15,714,262              15,773,875

                                          $206,544,669            $201,183,592




Note:  The balance sheet at July 31, 1998 has been derived from the audited
       financial statements at that date.

See notes to unaudited condensed consolidated financial statements.





















                                   1 of 16


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

                                                January 31,         July 31,
                                                   1999               1998
                                                Unaudited)           (Note)

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current installments of long-term debt         $      266,052
Accounts payable                                   13,702,743      $8,502,778

Accrued expenses                                    9,041,907       9,159,994

Income taxes                                        1,288,000       1,093,979

  Total current liabilities                        24,298,702      18,756,751

Long-term debt, excluding current installments     90,089,385      92,246,967

Other non-current liabilities                       3,054,715       3,854,833

Deferred income taxes                               8,770,000       8,770,000

Stockholders' equity:
  Common stock, par value $.25 per share;
    Authorized 50,000,000 shares:
    Issued 11,306,444 shares                         2,826,611      2,826,611
  Additional paid-in-capital                        52,064,121     52,064,121
  Retained earnings                                 33,462,044     30,848,452
  Cost of 475,522 shares in treasury                (6,573,719)    (6,573,719)
  Deferred compensation under stock bonus
    plan and employees' stock ownership plan        (1,447,190)    (1,610,424)
             Total stockholders' equity             80,331,867     77,555,041

                                                  $206,544,669   $201,183,592


Note:  The balance sheet at July 31, 1998 has been derived from the audited
       financial statements at that date.

See notes to unaudited condensed consolidated financial statements.











                                2 of 16



                 CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                                                Three Months Ended January 31,
Revenues:                                            1999            1998
  Net Sales                                     $  89,450,701    $102,124,053
  Rentals from real estate                            510,176         551,135

                                                   89,960,877     102,675,188

Cost and expenses:
  Cost of sales                                    63,102,236      75,594,751
  Selling, general and
   administrative expenses                         23,170,767      21,720,183
  Expenses of real estate                             408,486         437,337

                                                   86,681,489      97,752,271
     Operating profit                               3,279,388       4,922,917

Gain on sale of real estate                                         1,281,698
Interest income                                       211,800         179,610
Interest expense                                   (1,923,123)     (1,942,453)
Other (deductions) - net                             (150,091)         (2,302)

     Income before income taxes                     1,417,974       4,439,470

Income taxes                                          573,000       1,754,000

     Net income                                  $    844,974      $2,685,470

Income per share:
     Basic                                               $.08            $.26

     Diluted                                             $.08            $.17


See notes to unaudited condensed consolidated financial statements.










                                3 of 16






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

                                                  Six Months Ended January 31,
Revenues:                                             1999           1998
  Net Sales                                     $184,213,519      $210,399,348
  Rentals from real estate                         1,081,794         1,065,714

                                                 185,295,313       211,465,062

Cost and expenses:
  Cost of sales                                  131,874,323       157,129,834
  Selling, general and
   administrative expenses                        44,747,395        43,698,026
  Expenses of real estate                            812,639           830,889

                                                 177,434,357       201,658,749
     Operating profit                              7,860,956         9,806,313

Gain on sale of real estate                                          1,281,698
Interest income                                      421,048           241,686
Interest expense                                  (3,754,860)      (4,132,047)
Other (deductions) - net                            (126,552)         (36,289)

     Income before income taxes                    4,400,592         7,161,361

Income taxes                                       1,787,000         2,908,000

     Net income                                   $2,613,592        $4,253,361

Income per share:
     Basic                                              $.25              $.41

     Diluted                                           $.22              $.29


See notes to unaudited condensed consolidated financial statements.









                                4 of 16





                CHOCK FULL O'NUTS CORPORATION AND SUBSIDIARIES

          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                               Six Months Ended January 31,

                                                  1999            1998

Operating Activities:
  Net income                                  $  2,613,592       $4,253,361
 Adjustments to reconcile net income
   to net cash provided by
   operating activities:
  Depreciation and amortization of  
   property, plant and equipment                 3,230,932        3,297,167
  Amortization of deferred 
    compensation and deferred charges            1,465,234        2,181,653
  Gain on sale of real estate                                    (1,281,698)
  Other, net                                      (928,815)        (887,074)
  Changes in operating assets and  
   liabilities:
    Decrease/(increase) in accounts 
      receivable                                 3,130,843       (2,947,557)
    (Increase)/decrease in inventory            (2,225,119)       8,645,646
    (Increase) in prepaid
      expenses                                  (1,813,438)        (700,768)
    Increase/(decrease)in accounts
     payable, accrued expenses and
     income taxes                                5,275,889       (1,619,781)
NET CASH PROVIDED BY OPERATING 
   ACTIVITIES                                   10,749,128       10,940,949
Investing Activities:
 Proceeds from sale of real estate                                6,685,941
 Sales /(purchases) of marketable  
  securities                                       117,625           (8,859) 
 Purchases of property, plant and
  equipment                                     (4,327,272)      (2,391,489) 
 Proceeds from/(advances to) co-packer, 
  net                                              278,228       (1,088,860)
NET CASH (USED IN)/PROVIDED BY
  INVESTING ACTIVITIES                          (3,931,419)       3,196,733
Financing Activities:
  Proceeds from/(payments of) revolving
   credit and term loans, net                   (1,949,677)      (6,001,916)
 (Payment of) convertible subordinated 
   debentures                                   (5,000,000)
  Loan to employees' stock ownership
   plan                                         __________       (1,000,000)
NET CASH (USED IN)FINANCING ACTIVITIES          (3,050,323)      (7,001,916)
Increase in Cash and Cash Equivalents            3,767,386        7,135,766
Cash and Cash Equivalents at Beginning
  of Period                                      6,148,068        4,585,633
Cash and Cash Equivalents at End of
  Period                                       $ 9,915,454      $11,721,399




See notes to unaudited condensed financial statements.











                                 5 of 16




                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, 1998               11,306   $2,827      476    $6,574
Net Income

Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
  Amortization

Balance at January 31, 1999            11,306  $2,827       476    $6,574










See notes to unaudited condensed consolidated financial statements.






                                     6 of 16




                  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, 1998                    $1,610        $52,064     $30,848
Net income                                                              2,614

Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization                               163          ______    ________

Balance at January 31, 1999                $1,447        $52,064     $33,462




See notes to unaudited condensed consolidated financial statements.











                                  7 of 16



              CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
          NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   January  31, 1999

  (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
        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, 1999 and 1998 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, 1998.

(B)	Basic per share data is based on the weighted average number of common
	shares outstanding of 10,521,000 and 10,508,000 for the three and six
        months ended January 31, 1999, respectively, and 10,350,000  and
        10,373,000 for the three and six months ended January 31, 1998,
        respectively. Diluted per share data, assuming conversion of
        debentures, is based on 21,181,000 and 21,374,000 shares outstanding
        for the three and six months ended January 31, 1999, respectively and
        22,082,000 and 22,121,000 for the three and six months ended
        January 31, 1998, respectively. In addition, net income is increased
        due to a reduction of interest and amortization charges, net of income
        taxes, on the assumed conversion of debentures of $1,007,000 and
        $2,024,000 for three and six months ended January 31, 1999, respectively
        and $1,092,000 and $2,159,000 for the three and six months ended January
        31, 1998, 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,
                                                  1999               1998
        Finished goods                         $37,571,738      $35,775,998
        Raw materials                           18,734,752       17,539,666
        Supplies                                 6,559,938        7,325,645
                                               $62,866,428      $60,641,309

(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 November
        30, 1999 may not exceed $40,000,000 and after such date may not exceed
        $20,000,000.  Interest on all such loans is equal to the prime rate or
        at the Company's option the London Interbank Offering Rate ("LIBOR")
        plus 1.25%, subject to adjustment based on the level of loans
        outstanding (7.75% at prime and 6.19% at LIBOR,at January 31, 1999).
        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, 1999) are to be repaid in January 2003. Outstanding
        loans under the revolving credit agreements are to be repaid in
        January 2003. 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.

                                  8 of 16



(E)	Prepaid expenses and other on the unaudited condensed consolidated 
	balance sheets includes deferred income taxes of $951,000.

(F)	As of August 1, 1998, the Company adopted Statement of Financial 
	Accounting Standards No. 130, "Reporting Comprehensive Income"
        (SFAS 130).  The adoption of this Statement had no impact on the
        Company's net income or stockholders' equity.  This pronouncement
        sets forth requirements for disclosure of the Company's comprehensive
        income and accumulated other comprehensive items.  Comprehensive
        income is defined as the change	in equity during a period from
        transactions or other events and circumstances unrelated to net
        income (e.g., foreign currency translation gains and losses).

      	In June 1997, the FASB also issued SFAS No. 131, "Disclosures About
        Segments of an Enterprise and Related Information," which is effective
        for the Company's fiscal year ending July 31, 1999.  The statement
        changes the way public companies report information about segments of
        their business in their annual financial statements and requires them
        to report selected segment information in their quarterly reports.
        However, information is not to be presented for interim financial
        statements in the first year of implementation. Adoption of SFAS
        No. 131 is not expected to have a material effect on the Company's
        financial statement disclosures.

        In June 1998, the FASB issued Statement No. 133, "Accounting for
	Derivative Instruments and Hedging Activities," which is effective
        for the Company's fiscal year ending July 31, 2000.  The Statement
        permits early	adoption as of the beginning of any fiscal quarter
        after its issuance.  The Company expects to adopt the new Statement
        effective August 1, 1999.  The Statement will require the Company to
        recognize all derivatives, as defined, on the balance sheet at fair
        value.  Derivatives that are not hedges must be	adjusted to fair
        value through income.  If the derivative is a hedge, depending on the
        nature of the hedge, changes in the fair value of derivatives will
        either be offset against the change in fair value of the hedged
        assets, liabilities, or firm commitments through earnings or
        recognized in other comprehensive income until the hedged item is
	recognized in earnings.  The ineffective portion of a derivative's
        change in fair value will be immediately recognized in earnings.
        The Company has not yet determined what the effect of Statement
        No. 133 will be on the earnings and financial position of the Company.

(G)	On December 4, 1998, the Company redeemed $5,000,000 
	of its 8% Convertible Subordinated Debentures using existing invested
        funds.

(H)	The Company uses coffee futures and options for hedging purposes to
        reduce the effect of changing green coffee prices.  The contracts
        that effectively meet the risk reduction and correlation criteria
        are recorded using hedge accounting.  Effectiveness is measured
        based upon high correlation between commodity gains and losses on
        the futures and options and those on the firm commitment.  Under
        hedge accounting, the gain or loss on the hedge is deferred and
        recorded as a component of the underlying inventory purchase.  Gains
        and losses on hedges that are terminated prior to inventory purchases
        are recorded in inventory until the inventory is sold.

(I)	In November 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 such sale were used to reduce outstanding bank
        indebtedness.





                                  9 of 16


	
                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.

	Net sales from beverage products decreased to $88,774,000 or 12.4% for
        the three months ended January 31, 1999 compared to $101,362,000 for
        the comparable period of the prior year. The decrease was primarily due
        to a decrease in the average selling price of coffee partially offset by
        a 10% increase in coffee pounds sold (primarily attributable to the Park
        Coffee Company ("Park")acquisition in July 1998). Operating profit from
        beverage products was $3,473,000 a decrease of 33.8% for the three
        months ended January 31, 1999 compared to the prior year's comparable
        period. The decrease for the three months resulted primarily from
        decreases in gross margins partially offset by decreases in selling,
        general and administrative expenses for operations other than Park.
        Decreased gross margins were primarily due to an increase in
        manufacturing costs resulting from labor and overhead inefficiencies
        in the manufacturing transition period for Park of approximately of
        $1.5 million and a decrease in the average selling price of coffee
        greater than the decrease in the average cost of green coffee.
        During the three months ended January 31, 1999 prices of green coffee
        ranged from a high of $1.29 to a low of $1.03 per pound. Selling,
        general and administrative expenses decreased, other than those
        applicable to Park, primarily due to decreased advertising,
        compensation costs and amortization of purchased intangibles, partially
        offset by increased delivery costs.

	Net sales from beverage products decreased to $182,641,000 or 12.4% for
        the six months ended January 31, 1999 compared to $208,546,000 for the 
	comparable period of the prior year. The decrease was primarily due to
        a decrease in the average selling price of coffee partially offset by a
        10.7% increase in coffee pounds sold (primarily attributable to the Park
        acquisition).  Operating profit from beverage products was $8,180,000 a
        decrease of 22% for the six months ended January 31, 1999 compared to
        the prior year's comparable period. The decrease for the six months
        resulted primarily from decreases in gross margins partially offset by
        decreases in selling, general and  administrative expenses for
        operations other than Park and further offset to lesser extent by the
        operating profit of Park. Decreased gross margins were primarily due
        an increase in manufacturing cost similar to that in the three month
        comparison and to a decrease in the average selling price of coffee
        greater than the decrease in the average cost of green coffee.  During
        the six months ended January 31, 1999 prices of green coffee ranged
        from a high of $1.35 to a low of $1.02 per pound. Selling, general and
        administrative expenses decreased, other than those applicable to Park,
        primarily due to decreased advertising, compensation costs and
        amortization of purchased intangibles, partially offset by increased
        delivery costs.




                                 10 of 16
	
	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
        $2,269,000 for six months ended January 31, 1999 versus $1,379,000,
        an increase of 65%, in the comparable 1998 period.  Quikava
        company-operated shop sales were $1,573,000 for the six months ended
        January 31, 1999 compared to $1,854,000 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 $588,000 for the six months ended January 31, 1999 compared to
        $919,000 in the comparable period of the prior year. The operating
        losses consist primarily of headquarters' expenses (primarily payroll
        and related expenses for franchising infrastructure) and shop level
	losses, partially offset by initial franchise fee income and  royalty
	income on franchisee sales.

        Net income was $845,000 ($.08 per basic and diluted share) for the
        three months ended January 31, 1999, compared to $2,685,000
        ($.26 per basic share and $.17 per diluted share) for the comparable
        period of the prior year. The decrease was primarily due to decreased
        operating profits from beverage products and the gain on sale of real
        estate in fiscal 1998, partially offset by decreased income taxes
        (primarily attributable to decreased income before income taxes) and
        decreased operating losses from Quikava.
	
        Net income was $2,614,000 ($.25 per basic share and $.22 per diluted
        share) for the six months ended January 31, 1999, compared to
        $4,253,000 ($.41 per basic share and $.29 per diluted share) for the
        comparable period of the prior year. The decrease was primarily due
        to decreased operating profits from beverage products and the gain
        on sale of real estate in fiscal 1998, partially offset by decreased
        income taxes (primarily attributable to decreased income before
        income taxes), decreased interest expense (resulting from reduced
        amounts of debt outstanding, increased interest income (resulting
        from increased invested funds) and decreased operating losses from
        Quikava.

	
	Liquidity and Capital Resources

	As of January 31, 1999, working capital was approximately $91,250,000
        and the ratio of current assets to current liabilities was 4.8 to 1.

	As of January 31, 1999, the Company had unused borrowing capacity of
	approximately $35 million under its credit facilities of $40 million
        with Fleet Bank, N.A. and The Chase Manhattan Bank (see Note D of
        Notes to Unaudited Condensed Consolidated Financial Statements).

	See Note G of Notes to Unaudited Condensed Consolidated Financial
        Statements relative to a partial redemption of the Company's 8%
        Convertible Subordinated Debentures.

	The Company plans on expanding its Quikava franchised operations,
        which are currently operating in 36 locations. The sales of Company
        operated and franchised units are not material to the Company's
        consolidated sales. Total Quikava store level operations are not
        currently profitable but are being partially offset by franchise fee
        and royalty income and, in addition, Quikava headquarters' expenses
        of approximately $1,000,000 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.



                                   11 of 16
	


	Green Coffee Market

	Coffee is one of the leading commodities traded on futures exchanges.
	Supplies fluctuate with the weather and prices can be and have been
        volatile. The supply and price is affected by multiple factors, such
        as weather, weather forecasts, consumption trends, changes in stock
        levels, export restrictions observed by members of the Association of
        Coffee Producing Countries ("ACPC") members, activities of hedge funds,
        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.
				    			
	In the sixties some coffee exporting countries plus a group of coffee 
	importing countries together formed the International Coffee
        Organization ("ICO"). The principal aim of the organization was to
        stabilize coffee prices in the world market. One of the instruments
        which the ICO used to achieve this was a system allocating an export
        quota to each of the coffee producing countries. In July 1989, this
        system was abandoned due to disagreements involving several exporting
        as well as importing countries. In 1994, a new International Coffee
        Agreement came into force which no longer included the price stability
        mechanism.  As a consequence, the function of the ICO changed. This
        organization now provides a forum where exporting and importing
        countries can discuss matters pertaining to coffee. In addition, the
        ICO publishes statistics about the coffee market.  It has thus become
        an administrative organization.

	When the export quota system was abandoned in 1989, coffee prices
        declined in the global market.  Certain exporting countries were
        dissatisfied with the new situation and tried to regain their grip
        on the international coffee market.  In 1993, they established the ACPC
        to boost coffee prices in the global market by keeping part of annual
        production out of the world market. The ACPC members account for around
        70% of world coffee exports.  The ACPC attempts to achieve better prices
        by agreeing export quotas for each member country and an export volume
        ceiling for the organization as a whole.
        
	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 prices.  In January 1996, the ACPC
        agreed to extend its current limitations on the supply of green coffee
        which were scheduled to expire 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 crop.  The announcement of the Brazilian frost damage caused a
        substantial increase in green coffee prices and other coffee-product
        prices worldwide.  The Company purchases a modest amount of its green
        coffee from Brazil.  In the third and fourth quarter of 1994 the
        Company experienced a significant increase in the price of green coffee
        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
        prices that resulted from the Brazilian aforementioned 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 frosts. In February 1997, green coffee
        bean prices began to rise significantly reaching a high of $3.18 per

                                        12 of 16


        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.


	During the fiscal 1998, the green coffee market was in the $1.09 to
	$2.11 per pound range, and towards the end of such year at the lower
        end of this range.  From August 1997 until February 1998, coffee
        remained relatively high, most of the time at above $1.70 per pound,
        when a fast, substantial and sustained drop occurred caused by a
        significantly large Brazilian crop.  This left the Company with large
        quantities of high-priced inventory while sales slowed as retailers
        waited for the green coffee market to affect the price they pay for
        roasted coffee and pressure intensified	as major competitors cut prices
        in response.  The result was lower net income in the third quarter of
        fiscal 1998 compared to the first and second quarters and an
        approximate break-even in the fourth quarter.

	During the first six months of fiscal 1999, the coffee market was in
        the $1.02 to $1.35 per pound range.  The large Brazilian crop continues
        to overhang the coffee market, notwithstanding the effects in Central
        America of Hurricane Mitch, and the price of coffee currently is at the
        lower end of that 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 inventory 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 price fluctuations. In
        addition, the Company uses options and futures for hedging purposes
        to reduce the risks of changing green coffee prices. Green coffee is a
        large market with well-established brokers, importers and warehousemen
        through 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 from any
        particular country.

	Retail Customers are very price-sensitive about the purchase of coffee
        in supermarkets. When retail prices increase dramatically, take away
        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.

	Year 2000 Issue
	
        In 1998, the Company established an oversight committee, to review all
        of the Company's computer systems and programs, as well as the computer
        systems of the third parties upon whose data or functionality the
        Company relies in any material respect, and to assess their ability to
        process transactions in the Year 2000. The Company has a formal Year
        2000 Program focusing on three key


                                    13 of 16

        readiness areas: 1) Internal hardware/software and non-information
        technology systems; 2) Supplier readiness; and 3) Customer readiness.
        For each readiness area, the Company has identified steps to perform
        and developed timetables for Year 2000 compliance. The Company has
        conducted an assessment of internal applications and hardware. Some
        software applications have been made Year 2000 compliant and resources
        have been assigned to address other applications based on their
        criticality and the time required to make them Year 2000 compliant.
        All software remediation is scheduled to be completed no later than the
        middle of 1999. The Year 2000 compliance evaluation of hardware,
        including roasters, grinders, bagging machines, telecommunication
        equipment, workstations and other items, is nearing completion. The
        Company has identified and contacted key suppliers. To date, the
        Company has received responses from the majority of its key suppliers,
        most of which indicate that the suppliers are in the process of
        developing remediation plans. Based on the supplier's progress to
        adequately address the Year 2000 issue, the Company is developing a
        supplier action list and contingency plan to include alternative
        sources of supply. The Company has identified and been in contact with
        Key customers. The customers have responded that they are or will be
        Year 2000 compliant.

        The Company has expensed approximately $350,000 for Year 2000 costs in
        fiscal 1998, approximately $100,000 for Year 2000 costs in the first
        six months of fiscal 1999 and estimates future expenditures for Year
        2000 compliance to be approximately $150,000. There can be no
        assurance, however, that there will not be a delay in, or increased
        costs associated with, the programs described in this section. Since
        the programs described in this section are ongoing, all potential Year
        2000 complications have not yet been identified.  Therefore, the
        potential impact of these complications on the Company's financial
        condition and results of operations cannot be determined at this time.
        If computer systems used by the Company, its suppliers or customers
        fail or experience significant difficulties related to the Year 2000,
        the Company's results of operations and financial conditions could be
        materially affected.

        Disclosure About Interest Rate Risk

        The Company is subject to market risk from exposure to fluctuations in
        interest rates.  At January 31, 1999, the Company's long-term debt
        consists of $95 million of fixed rate long-term debt (principally its
        convertible subordinated debentures) and $5 million of variable rate
        debt under its revolving credit and term loans.  The Company does not
        enter into derivative financial instruments for trading or speculative
        purposes.  The Company does not expect changes in interest rates to
        have a material effect on income or cash flows in fiscal 1999, although
        there can be no assurance that interest rates will not significantly
        change.

        Disclosure About Commodity Price Risk

        The Company uses coffee futures and options for hedging purposes to
        reduce the effect of changing green coffee prices.  At January 31,
        1999, the total value of coffee contracts was approximately $8.5
        million. These contracts meet the risk reduction and correlation
        criteria for hedge accounting and gains and losses are deferred and
        recorded as a component of the underlying inventory purchase.  If the
        market value of green coffee at January 31, 1999 ($1.04) were to
        increase or decrease by $.15, the effect would be to decrease
        inventory by approximately $250,000 and $75,000, respectively.  The
        Company generally has been able to pass green coffee prices increases
        through to its customers, thereby maintaining its gross margins.  The
        Company cannot predict whether it will be able to pass inventory price
        increases through to its customers in full in the future.

                                                        



1                                      14 of 16

	

	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 18,
        1998, the Company's shareholders' elected Norman E. Alexander
        (9,922,798 for 389,827  against), Stuart Z. Krinsly (9,922,507 for
        390,118 against)and David S. Weil (9,922,768 for 389,857 against)
        as directors for a term of three years, ratified the appointment of
        independent auditors for fiscal 2000 with a vote of 10,127,441 for
        and 136,361 against and rejected a shareholder proposal to publish
        an appendix on charitable donations with a vote of 6,082,298 against
       	and 665,511 for.

	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 Private Securities Litigation Reform Act
        of 1995. Such forward looking statements are based on current
        expectations and information available to management at this time.
        They may 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. Factors which could cause actual results to differ from
       	the forward looking statements include, among others, the following:
        general economic and business conditions; the availability of green
        coffee; green coffee prices; competition; the 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 franchised 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 the Year 2000 issue.

	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
	







                                       
                                 15 of 16 


                        Appendix A to item 601 (c) of Regulation S-K

                                (Article 5 of Regulation S-X
                                        
                       Chock full o'Nuts Corporation and Subsidiaries)


	
Item Number           Item Description                               Amount
5-02 (1)              Cash and cash items                         $  9,915,454
5-02 (2)              Marketable securities                       $        -0-
5-02 (3) (a) (1)      Notes and accounts receivable - trade       $ 38,758,040
5-02 (4)              Allowances for doubtful accounts            $  1,328,000
5-02 (6)              Inventory                                   $ 62,866,428
5-02 (9)              Total current assets                        $115,544,181
5-02 (13)             Property, plant and equipment               $110,858,492
5-02 (14)             Accumulated depreciation                    $ 59,577,756
5-02 (18)             Total assets                                $206,544,669
5-02 (21)             Total current liabilities                   $ 24,298,702
5-02 (22)             Bonds, mortgages and similar debt           $ 90,089,385
5-02 (28)             Preferred stock - mandatory redemption               -0-
5-02 (29)             Preferred stock - no mandatory redemption            -0-
5-02 (30)             Common stock                                $  2,826,611  
5-02 (31)             Other stockholders' equity                  $ 77,505,256
5-02 (32)             Total liabilities and stockholders' equity  $206,544,669
5-03 (b) 1 (a)        Net sales of tangible products              $184,213,519
5-03 (b) 1            Total revenues                              $185,295,313

5-03 (b) 2 (a)        Cost of tangible goods sold                 $131,874,323
5-03 (b) 2            Total costs and expenses applicable to
                      sales and revenues                          $132,686,969

5-03 (b) 3            Other costs and expenses                    $        -0-
5-03 (b) 5            Provision for doubtful accounts and notes   $  1,177,000 
5-03 (b) (8)          Interest and amortization of debt           $  3,754,860
5-03 (b) (10)         Income before taxes and other items         $  4,400,595
5-03 (b) (11)         Income tax expense                          $  1,787,000
5-03 (b) (14)         Income/loss continuing operations           $  2,613,502
5-03 (b) (15)         Discontinued operations                              -0-
5-03 (b) (17)         Extraordinary items                                  -0-
5-03 (b) (18)         Cumulative effect - changes in accounting
                      principles                                           -0-
5-03 (b) (19)         Net income or loss                          $  2,613,592
5-03 (b) (20)         Earnings per share - basic                  $        .25
5-03 (b) (20)         Earnings per share - diluted                $        .22
						

						


						
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, 1999						                             
                                                Marvin I. Haas
                                                President and Chief Executive
                                                Officer



March12, 1999                                                                  
                                                Howard M. Leitner
                                                Senior Vice President and 
                                                Chief Financial and Accounting
                                                Officer














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