SECURITIES AND EXCHANGE COMMISSION	

	        Washington, D.C. 20549

	       FORM 10-Q

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



For Quarter Ended    October 31, 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 
	December 11, 1998 - 10,830,922


	
	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

	INDEX

													Page No.
PART I.  FINANCIAL INFORMATION

Item 1.	Financial Statements

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

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

	Unaudited Condensed Consolidated Statements of Cash Flows -
        Three Months Ended October 31, 1998 and 1997                   4 of 14
                                                                      
	Unaudited Condensed Consolidated Statement of Stockholders' Equity -
        October 31, 1998                                           5 & 6 of 14
	
	Notes to Unaudited Condensed Consolidated Financial 
        Statements - October 31, 1998                              7 & 8 of 14

Item 2.	Management's Discussion and Analysis of 
        Financial Condition and Results of Operations  9, 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
		
                                        October 31, 1998          July 31, 1998
ASSETS
Current assets:
  Cash and cash equivalents              $16,226,023              $  6,148,068
  Receivables, principally
   trade, less allowances
   for doubtful accounts and
   discounts of $1,222,000                40,051,911                40,559,581
   and $1,329,000

   Inventories                            57,290,758                60,641,309

   Prepaid expense and other               3,128,680                 3,636,446
       Total current assets              116,697,372               110,985,404

Property, plant and
  equipment - at cost      $106,900,854              $105,327,427
    Less allowances for                                
      depreciation and
      amortization          (57,910,550   48,990,304  (56,346,824)  49,025,603

Real estate held for
 development or sale, at cost              2,161,383                 2,175,344

Other assets and deferred
 charges                                  22,769,752                23,223,366

Excess of cost over net
 assets acquired                          15,096,234                15,773,875
                                        $205,715,045              $201,183,592



Note:  The balance sheet at July 31, 1998 has beenderived 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


                                                   October 31,      July 31,
                                                      1998            1998
                                                   (Unaudited)       (Note)
                                              
LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Current installments of long-term debt         $    2,240,000
Accounts payable                                   13,587,007      $8,502,778

Accrued expenses                                    6,796,611       9,159,994

Income taxes                                         698,074       1,093,979

  Total current liabilities                        23,321,692      18,756,751

Long-term debt, excluding current installments     91,171,158      92,246,967

Other non-current liablities                        3,046,919       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                                32,617,070      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       (1,528,807)     (1,610,424)

          Total stockholders' equity               79,405,276      77,555,041

                                                 $205,715,045    $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 14

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


                                                 Three Months Ended October 31,
Revenues:                                            1998             1997
  Net Sales                                     $  94,762,818   $108,275,295
  Rentals from real estate                            571,618        514,579

                                                   95,334,436    108,789,874

Cost and expenses:
  Cost of sales                                    68,772,087     81,535,083
  Selling, general and
   administrative expenses                         21,576,628     21,977,843
  Expenses of real estate                             404,153        393,552

                                                   90,752,868    103,906,478
     Operating profit                               4,581,568      4,883,396

Interest income                                       209,248         62,076
Interest expense                                   (1,831,737)    (2,189,594)
Other income /(deductions) - net                       23,539        (33,987)

     Income before income taxes                     2,982,618      2,721,891

Income taxes                                        1,214,000      1,154,000

     Net income                                 $   1,768,618     $1,567,891

Income per share:
      Basic                                              $.17           $.15
      
      Diluted                                            $.13           $.12


See notes to unaudited condensed consolidated financial statements.


                                   3 of 14


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

                                                Three Months Ended October 31,
                                                    1998              1997
Operating Activities:
 Net income                                    $  1,768,618        $1,567,892
 Adjustments to reconcile net income
   to net cash provided by
   operating activities:
  Depreciation and amortization of
   property, plant and equipment                  1,563,726         1,668,360
  Amortization of deferred
    compensation and deferred charges               754,358         1,190,890
  Other, net                                       (580,326)         (320,528)
  Changes in operating assets and
   liabilities:
    Decrease/(increase) in accounts
      receivable                                     614,843       (6,057,965)
    Decrease in inventory                          3,350,551       12,998,714
    Decrease/(increase) in prepaid
      expenses                                       491,698         (215,992)
    Increase/(decrease)in accounts
     payable, accrued expenses and
     income taxes                                   2,324,941      (3,645,602)
NET CASH PROVIDED BY OPERATING
   ACTIVITIES                                      10,288,409       7,185,769
Investing Activities:
 Sales of marketable securities                        16,068
 Purchases of marketable securities                                    (5,535)
 Purchases of property, plant and
  equipment                                        (1,528,427)     (1,231,039)
NET CASH (USED IN)
  INVESTING ACTIVITIES                             (1,512,359)     (1,236,574)
Financing Activities:
  Proceeds from/(payments of) long-
   term debt, net                                   1,164,191      (1,814,154)
  Proceeds from/(advances to)
   co-packer, net                                     137,714      (1,231,817)
  Loan to employees' stock ownership
   plan                                             _________      (1,000,000)
NET CASH PROVIDED BY/(USED IN)
 FINANCING ACTIVITIES                               1,301,905      (4,045,971)
Increase in Cash and
 Cash Equivalents                                  10,077,955       1,903,224
Cash and Cash Equivalents at
 Beginning of Period                                6,148,068       4,585,633
Cash and Cash Equivalents at End of
 Period                                           $16,226,023      $6,488,857


See notes to unaudited condensed financial statements.




                                       4 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, 1998                    11,306    $2,827      476    $6,574
Net Income

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

Balance at October 31, 1998                11,306    $2,827       476    $6,574







See notes to unaudited condensed consolidated financial statements.



























								 
                 


                               5 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, 1998            $1,610            $52,064        $30,848
Net income                                                              1,769

Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization                         81

Balance at October 31, 1998          $1,529            $52,064        $32,617


See notes to unaudited condensed consolidated financial statements.











                              6 of 14



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

                            October  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 months ended October 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, 1998.

(B)	Basic per share data is based on the weighted average number of common
	shares outstanding of 10,495,000 and 10,395,000 for the three months
        ended October 31, 1998 and 1997, respectively. Diluted per share data,
        assuming conversion of debentures, is based on 21,545,000 and
        22,230,000 shares outstanding for the three months ended October 31,
        1998 and 1997, 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 $1,016,000 and
        $1,057,000 for three months ended October 31, 1998 and 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:

                                      
                                            October 31,          July 31,
                                              1998                 1998
Finished goods                              $37,040,246         $35,775,998
Raw materials                                13,364,639          17,539,666
Supplies                                      6,885,873           7,325,645
                                            $57,290,758         $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
        (8% at prime and 7.13% at LIBOR, at Ocotber 31, 1998). 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 October 31,
        1998) 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.



                                      7 of 14



(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 in
        other events and circumstances unrelated to net income (e.g., foreign
        currency translation gains and losses).  For the three month periods
        ended October 31, 1998 and 1997, other comprehensive income was not
        material.

	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 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 called for redemption $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.











                                     8 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.

	Net sales from beverage products decreased to $93,867,000 or 12.4% for
        the three months ended October 31, 1998 compared to $107,184,000 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 an
        11.4% increase in coffee pounds sold (primarily attributable to the Park
        Coffee Company ("Park")acquisition in July 1998). Operating profit from
        beverage products was $4,707,000 a decrease of 9.4% for the three months
        ended October 31, 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 and the operating profit of Park. Decreased
        gross margins were primarily due to a decrease in the average selling
        price of coffee greater than the decrease in the average cost of green
        coffee partially offset by increased coffee pounds sold. During the
        three months ended October 31, 1998 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.

	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
        $1,077,000 for three months ended October 31, 1998 versus $644,000, an
        increase of 67%, in the comparable 1997 period.  Quikava company-
        operated shop sales were $896,000 for the three months ended
        October 31, 1998 compared to $1,091,000 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
        $292,000 for the three months ended October 31, 1998 compared to
        $435,000 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 $1,769,000 ($.17 per basic share and $.13 per diluted
        share) for the three months ended October 31, 1998, compared to
        $1,568,000 ($.15 per basic share and $.12 per diluted share) for the
        comparable period of the prior year. The increase was primarily due to
        decreased interest expense (resulting from reduced amounts of debt
        outstanding, increased interest income (resulting from increased
        invested funds) and decreased operating losses from Quikava, partially
        offset by decreased operating profits from beverage products and
        increased income taxes(primarily attributable to increased income
        before income taxes).


                                        9 of 14

	Liquidity and Capital Resources

	As of October 31, 1998, working capital was approximately $93,375,000
        and the ratio of current assets to current liabilities was 5 to 1.

	As of October 31, 1998, 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.

	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.

                                        10 of 14

	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 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	he 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 effect 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 quarter 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.

	



11 of 14





        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 nywhere
        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, 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.

	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 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 beginning or 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 will develop a supplier action list and contingency plan. 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 and estimates future expenditures for Year 2000 compliance
        to be approximately $275,000. 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.
				



                                            12 of 14

	

	Part II.   Other Informatio n

	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 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
	





























                                      13 of 14 


                       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                           $  16,226,023
5-02 (2)           Marketable securities$                             -0-
5-02 (3) (a) (1)   Notes and accounts receivable - trade         $  41,273,911
5-02 (4)           Allowances for doubtful accounts              $   1,222,000
5-02 (6)           Inventory                                     $  57,290,758
5-02 (9)           Total current assets                          $ 116,697,372
5-02 (13)          Property, plant and equipment                 $ 106,900,854
5-02 (14)          Accumulated depreciation                      $  57,910,550
5-02 (18)          Total assets                                  $ 205,715,045
5-02 (21)          Total current liabilities                     $  23,321,692
5-02 (22)          Bonds, mortgages and similar debt             $  91,171,158
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                    $  76,578,665
5-02 (32)          Total liabilities and stockholders' equity     $205,715,045
5-03 (b) 1 (a)     Net sales of tangible products                $  94,762,818
5-03 (b) 1         Total revenues                                $  95,334,436
5-03 (b) 2 (a)     Cost of tangible goods sold                   $  68,772,087
5-03 (b) 2         Total costs and expenses applicable to
                   sales and revenues                            $  69,176,240
5-03 (b) 3         Other costs and expenses                      $      -0-
5-03 (b) 5         Provision for doubtful accounts and notes     $     454,000
5-03 (b) (8)       Interest and amortization of debt             $   1,831,737
5-03 (b) (10)      Income before taxes and other items           $   2,982,618
5-03 (b) (11)      Income tax expense                            $    1,214,000
5-03 (b) (14)      Income/loss continuing operations             $    1,768,618
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                            $   1,768,618
5-03 (b) (20)      Earnings per share - basic                           $.17
5-03 (b) (20)      Earnings per share - diluted                         $.13



              
SIGNATURES

   Pursuant to the requirements of the Securities Exchange Act of 1934, the
   Registrant duly caused this Report of Form 10-Q to be signed on its behalf
   by the undersigned, thereunto duly authorized.

                                               CHOCK FULL O' NUTS CORPORATION
                                                        (Registrant)





December 11, 1998						                             
                                                Marvin I. Haas
                                                President and Chief
                                                Executive Officer



December 11, 1998    
                                                 Howard M. Leitner
                                                 Senior Vice President and 
                                                 Chief Financial and
                                                 Accounting Officer















 























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