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    April 30, 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
June 12, 1998 - 10,812,613


	
	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	INDEX

								 Page No.
PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

	Unaudited Condensed Consolidated Balance Sheets -
	April 30, 1998 and July 31, 1997                         1 & 2 of 14

	Unaudited Condensed Consolidated Statements of Income-
	Three Months Ended April 30, 1998 and 1997                   3 of 14
	
	Unaudited Condensed Consolidated Statements of Income-
	  Nine Months Ended April 30, 1998 and 1997                  4 of 14

	Unaudited Condensed Consolidated Statements of Cash Flows -
	Nine Months Ended April 30, 1998 and 1997                    5 of 14

	Unaudited Condensed Consolidated Statement of Stockholders' Equity -
	April 30, 1998                                           6 & 7 of 14
	
	Notes to Unaudited Condensed Consolidated Financial 
	Statements - April 30, 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 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
		
					    April 30,              July 31,
					       1998                  1997   
					    (Unaudited)             (Note)

ASSETS
Current assets:
	
  Cash and cash equivalents               $12,964,665          $  4,585,633

  Receivables, principally                                 
   trade, less allowances
   for doubtful accounts and
   discounts of $1,588,000                              
   and $1,422,000                          33,927,093              37,554,412

  Inventories                              71,323,948              82,951,688
						       
  Prepaid expenses and other                3,169,856               2,457,221
	
	Total current assets              121,385,562             127,548,954

Property, plant and 
 equipment - at cost      $102,412,436                $ 98,609,466

  Less allowances for
   depreciation and
   amortization            (54,928,397)   47,484,039  (49,933,489) 48,675,977

Real estate held for 
 development or sale, at cost              2,189,304                7,635,427

Other assets and deferred charges         23,571,990               23,799,057

Excess of cost over net
 assets acquired                           9,553,608                9,670,551
					$204,184,503             $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



						 April 30,        July 31,
						   1998             1997
						(Unaudited)        (Note)

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  
  Current portion of long-term debt                             $   766,000
 
  Accounts payable                              $10,483,645      13,590,697

  Accrued expenses                                6,478,920      12,148,313

  Income taxes                                    2,175,992       1,957,788
	
     Total current liabilities                   19,138,557      28,462,798

Long-term debt, excluding current portion        98,018,065     106,065,753

Other non-current liabilities                     2,002,289       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 11,288,135 and 11,211,068 shares       2,822,034       2,802,767
  Additional paid-in-capital                     51,928,359      51,357,008
  Retained earnings                              30,915,263      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     (1,721,345)     (1,053,865)
	  Total stockholders' equity             77,370,592      71,881,337

					       $204,184,503    $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 April 30,
					      1998              1997
Revenues:
  Net sales                             $ 95,895,503       $95,305,553
  Rentals from real estate                   453,296           523,218
				  
					  96,348,799        95,828,771
		   
Cost and expenses:                                                       
  Cost of sales                           70,869,138        66,195,704 
  Selling, general and
    administrative expenses               20,950,921        23,588,807
  Expenses of real estate                    427,060           410,940
					  92,247,119        90,195,451
     Operating profit                      4,101,680         5,633,320

Interest income                              176,479           258,191
Interest expense                          (1,952,018)       (2,131,045) 
Other (deductions)/income - net               (5,386)            4,565

    Income before income taxes             2,320,755         3,765,031
Income taxes                               1,008,000         1,529,000
    Net income                            $1,312,755        $2,236,031
	 
Income per share:                                                 
    Basic                                       $.13              $.21
  
    Diluted                                     $.11              $.15





See notes to unaudited condensed consolidated financial statements.





3 of 14
		  
			 



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

					     Nine Months Ended April 30,
					       1998               1997
Revenues:
  Net sales                                $306,294,851      $262,124,553
  Rentals from real estate                    1,519,010         1,571,071
				  
					    307,813,861       263,695,624
		   
Cost and expenses:                                                       
  Cost of sales                             227,998,972       183,806,140
  Selling, general and
    administrative expenses                  64,648,948        63,944,363
  Expenses of real estate                     1,257,948         1,279,417
					    293,905,868       249,029,920
     Operating profit                        13,907,993        14,665,704

Interest income                                 418,165           936,781
Gain on sale of real estate                   1,281,698
Interest expense                             (6,084,065)       (6,397,452)
Other (deductions)/income - net                 (41,675)           23,047

    Income before income taxes                9,482,116         9,228,080
Income taxes                                  3,916,000         3,793,000
    Net income                               $5,566,116        $5,435,080
	 
Income per share:                                                
    Basic                                          $.54              $.52
  
    Diluted                                        $.40              $.39





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

						Nine Months Ended April 30,
						  1998               1997
Operating Activities:
 Net income                                    $ 5,566,116       $ 5,435,080
 Adjustments to reconcile net income    
   to net cash provided by
   operating activities:
  Depreciation and amortization of property,
   plant and equipment                                4,994,908     4,337,915
  Amortization of deferred compensation and
   deferred charges                                   2,952,056     3,284,982
  Gain on sale of real estate                        (1,281,698)
  Other, net                                         (1,889,791)     (779,405)
  Changes in operating assets and liabilities:
     Decrease/(increase) in accounts receivable       3,024,062    (3,123,588)
     Decrease in inventory                           11,627,740    10,382,605
    (Increase)/decrease in prepaid expenses            (679,302)    1,376,196
    (Decrease)in accounts payable, accrued
      expenses and income taxes                      (8,558,241)   (6,127,539)
NET CASH PROVIDED BY OPERATING ACTIVITIES            15,755,850     6,276,196
Investing Activities:
 Proceeds from sale of real estate                    6,685,941
 Acquisition of business                                           (5,746,230)
 Purchases of marketable securities                     (33,333)      (43,489)
 Purchases of property, plant and equipment          (3,802,970)   (3,575,210)
NET CASH PROVIDED BY/(USED IN)INVESTING ACTIVITIES    2,849,638    (9,364,929)
Financing Activities:
 (Payments of)/proceeds from long-term debt, net     (8,211,688)    1,662,146
 (Advances to)/proceeds from co-packer, net          (1,014,768)    1,360,174
 Loan to employees' stock ownership plan             (1,000,000)
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES (10,226,456)    3,022,320 
 Increase/(decrease) in Cash and Cash Equivalents     8,379,032       (66,413)
 Cash and Cash Equivalents at Beginning of Period     4,585,633    16,293,783
 Cash and Cash Equivalents at End of Period         $12,964,665   $16,227,370


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            77      19
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization        
    Loan to employees' stock                            
      ownership plan                                  
Balance at April 30, 1998       11,288   $2,822   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                                                                  
Conversion of debentures                                   571        5,566
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:                       
    Amortization                        (333)
    Loan to employees' stock            
     ownership plan                    1,000
Balance at April 30, 1998             $1,721           $51,928      $30,915  





See notes to unaudited condensed consolidated financial statements.





							7 of 14

	


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

April 30, 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 
nine months ended April 30, 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
Financial Accounting Standards No. 128, Earnings per Share. Statement 128 
replace 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 10,433,000 and 10,392,000 for the three and nine months 
ended April 30, 1998, respectively, and 10,426,000 and 10,380,000 for the three
and nine months ended April 30, 1997, respectively. Diluted per share data, 
assuming conversion of debentures, is based on 21,899,000 and 21,920,000 shares
outstanding for the three and nine months ended April 30, 1998, respectively, 
and 22,246,000 and 22,200,000 shares outstanding for the three and nine months 
ended April 30, 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:

				      April 30,      July 31,
				       1998            1997
	Finished goods              $47,454,706     $41,747,129
	Raw materials                17,996,203      36,412,728
	Supplies                      5,873,039       4,791,831
				    $71,323,948     $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 April 30, 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 April 30, 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 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.

(G)     On March 27, 1998, the Company called for redemption $5,000,000 of its
8% Convertible Subordinated Debentures, of which $457,000 were converted 
prior to redemption.

(H)     In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive 
Income," which is effective for the Company's fiscal year ending July 31, 1999.
The statement addresses the reporting and displaying of comprehensive income 
and its components.  Adoption of SFAS No. 130 is not expected to have a 
material effect on the Company's financial statement disclosures.

	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.  Adoption of SFAS No. 131 is not 
expected to have a material effect on the Company's financial statement 
disclosures.

(I)     The Company currently is upgrading its management information systems,
which it expects to complete in the beginning of 1998, to ensure proper 
processing of transactions relating to the year 2000 and beyond.  The Company 
continues to evaluate appropriate courses of corrective action, including 
replacement of certain systems.  The Company does not expect the costs 
associated with ensuring year 2000 compliance to have a material effect on 
its financial position or results of operations.  All costs associated with 
year 2000 compliance are being funded with cash flow generated from operations
and are being expensed as incurred.  Although the Company believes that the 
information systems of its major customers and vendors (insofar as they 
relate to the Company's business) comply with Year 2000 requirements, there 
can be no assurance that the Year 2000 issue will not affect the information 
systems of such customers and vendors as they relate to the Company's 
business, or that any such impact on such customers' and vendors' information
systems would not have a material adverse effect on the Company's business, 
financial condition or results of operations.




						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 $95,231,000 or 0.7% for the 
three months ended April 30, 1998 compared to $94,532,000 for the comparable 
period of the prior year. The increase was primarily due to increases in the 
average selling price of coffee offset by a 4.9% decrease in coffee pounds 
sold. Operating profit from beverage products was $4,555,000 a decrease of 
25.1% for the three months ended April 30, 1998 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. Decreased gross margins were primarily due to 
decreased pounds sold and 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 April 30, 1998 prices of green coffee ranged from a high 
of $1.82 to a low of $1.29 per pound. Selling, general and administrative 
expenses decreased primarily due to decreased salaries, advertising, coupon 
costs and amortization of purchased intangibles. 

Net sales from beverage products increased to $304,040,000 or 17% for the 
nine months ended April 30, 1998 compared to $259,850,000 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 4.4% increase in 
coffee pounds sold. Operating profit from beverage products was $15,014,000 a
decrease of 4.9% for the nine months ended April 30, 1998 compared to the 
prior year's comparable period. The decrease for the nine months resulted 
primarily from slightly decreased gross margins and increased selling, 
general and administrative expenses. Decreased gross margins were primarily 
due to increased manufacturing costs, partially offset by increased coffee 
pounds sold and increased sales of allied products. The increase in the 
average selling price of coffee during the nine months approximated the 
increase in the average cost of green coffee. During the nine months ended 
April 30, 1998 prices for green coffee ranged from a high of $2.11 to a low 
of $1.29 per pound. Selling, general and administrative expenses increased 
primarily due to increased salaries, advertising and delivery costs, 
partially offset by reduced coupon costs and decreased amortization of 
purchased intangibles. 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 $2,328,000 for nine months ended
April 30, 1998 versus $1,707,000, an increase of 36%, in the comparable 1997 
period.  Quikava company-operated shop sales were $2,255,000 for the nine 
months ended April 30, 1998 compared to $2,275,000 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 
$1,367,000 for the nine months ended April 30, 1998 compared to $1,411,000 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 in 1998 and  royalty income on franchisee sales.
The operating losses for the three months ended April 30, 1998 and 1997 were 
$448,000 and $453,000, respectively.

Net income was $1,313,000 ($.13 per basic share and $.11 per diluted share) 
for the three months ended April 30, 1998, compared to $2,236,000 ($.21 per 
basic share and $.15 per diluted share) for the comparable period of the 
prior year. The difference was primarily due to decreased operating profits 
from beverage products, partially offset by decreased interest expense 
(resulting from reduced amounts of debt outstanding) and decreased income 
taxes. Decreased income taxes are primarily attributable to decreased income
before income taxes.
						
Net income was $5,566,000 ($.54 per basic share and $.40 per diluted share)
for the nine months ended April 30, 1998, compared to $5,435,000 ($.52 per
basic share and $.39 per diluted share)  for the comparable period of the 
prior year. The difference was primarily due to the gain on sale of real 
estate ($.07 per basic share and $.03 per diluted share) and to a lesser 
extent reduced interest expense (resulting from reduced amounts of debt 
outstanding in the second and third quarters), partially offset by reduced 
operating profits from beverage products, reduced interest income (resulting
from decreased invested funds) and increased income taxes (attributable to 
increased income before income taxes).


Liquidity and Capital Resources

As of April 30, 1998, working capital was approximately $102,000,000 and the 
ratio of current assets to current liabilities was 6.3 to 1.

As of April 30, 1998, the Company had unused borrowing capacity of 
approximately $31 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).

See Note G of Notes to Unaudited Condesened 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 27 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 $1,200,000 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 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 resolutions observed by 
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.  
							
							
							
11 of 14




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. The aim of this organization is 
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 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 $1.20 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 
supermarkets and club stores. When retail prices increase dramatically, 
takeaway declines and consumers switch to less expensive brands and high 
yield roasts. When retail prices decrease rapidly, retailers may react by 
reducing their purchases; the Company is currently experiencing this 
situation. FoodService Customers in times of price increase tend to stretch 
the use of inventory.

						

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 
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 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; and 
construction costs.


Item 6.    Exhibits and Reports on Form 8-K

	     a)  Exhibits - Financial Data Schedule - Exhibit 27 - see below
	     b)  Reports on Form 8-K
		   Item 4:  Changes in Registrant's Certifying Accountant 
		   Report dated May 5, 1998 - The Company engaged Grant 
		   Thornton, LLPas its independent auditors for the year ending
		   July 31, 1998.

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

(Article 5 of Regulation S-X

Chock full o'Nuts Corporation and Subsidiaries)


	
 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)





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



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