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, 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
	June 10, 1999 - 11,083,605



	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, 1999 and July 31, 1998                            1 & 2 of 17
	Unaudited Condensed Consolidated Statements of Operations -
        Three Months Ended April 30, 1999 and 1998             3 of 17
	Unaudited Condensed Consolidated Statements of Operations -
          Nine Months Ended April 30, 1999 and 1998             4 of 17

	Unaudited Condensed Consolidated Statements of Cash Flows -
          Nine Months Ended April 30, 1999 and 1998             5 of 17

	Unaudited Condensed Consolidated Statement of Stockholders' Equity -
        April 30, 1999                                      6 & 7 of 17

	Notes to Unaudited Condensed Consolidated Financial
        Statements - April 30, 1999                           8 & 9 of 17

Item 2.	Management's Discussion and Analysis of
        Financial Condition and Results of Operations
                                              10, 11, 12, 13 and 14 of 17


PART II.  OTHER INFORMATION

Item 1. Legal Proceedings                                       15 of 17


Item 5. Other Information                                      15 of 17

Item 6. Exhibits and Reports on Form 8-K                        16 of 17

Signatures                                                      17 of 17

	PART I. FINANCIAL INFORMATION
	CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
	CONDENSED CONSOLIDATED BALANCE SHEETS

                                         April 30,                  July 31,
                                            1999                      1998
ASSETS                                  (Unaudited)                  (Note)
Current assets:
  Cash and cash equivalents              $ 5,468,420               $ 6,148,068
  Receivables, principally
   trade, less allowances
   for doubtful accounts and
   discounts of $1,438,000
   and $1,329,000
                                           34,761,406                40,559,581

Inventories                                62,576,303                60,641,309

Prepaid expense and other                   6,413,699                 3,636,446
   Total current assets                   109,219,828               110,985,404

Property, plant and
  equipment - at cost      $112,837,702               $105,327,427
    Less allowances for
      depreciation and
      amortization          (60,877,584)   51,960,118  (56,346,824)  49,025,603

Real estate held for
 development or sale, at cost               2,133,463                 2,175,344

Other assets and deferred
 charges                                   21,445,531                23,223,366

Excess of cost over net
 assets acquired                           15,600,317                15,773,875

                                         $200,359,257              $201,183,592

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

See notes to unaudited condensed consolidated financial statements.



                    1 of 17


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

                                                      April 30,         July 31
                                                        1999             1998
                                                     (Unaudited)        (Note)

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current installments of long-term debt            $      266,052
Accounts payable                                      12,655,070     $8,502,778

Accrued expenses                                       7,498,227      9,159,994

Income taxes                                           1,256,114      1,093,979

  Total current liabilities                           21,675,463     18,756,751

Long-term debt, excluding current installments        88,348,675     92,246,967

Other non-current liabilities                          3,049,759      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 11,326,924 and 11,306,444 shares            2,831,731      2,826,611
  Additional paid-in-capital                          52,216,913     52,064,121
  Retained earnings                                   31,406,008     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          (1,365,573)    (1,610,424)

              Total stockholders' equity              78,515,360     77,555,041

                                                    $200,359,257   $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 17




                CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



                                                Three Months Ended April 30,
Revenues:                                          1999               1998
  Net Sales                                   $  86,046,704     $95,895,503
  Rentals from real estate                          505,462         453,296

                                                 86,552,166      96,348,799


Cost and expenses:
  Cost of sales                                  63,072,813      70,869,138
  Selling, general and
   administrative expenses                       24,309,826      20,950,921
  Expenses of real estate                           432,081         427,060

                                                 87,814,720      92,247,119

     Operating (loss)/profit                     (1,262,554)      4,101,680

Interest income                                     124,783         176,479
Interest expense                                 (1,863,545)     (1,952,018)
Other (deductions) - net                           (331,722)         (5,386)

     (Loss)/income before income taxes           (3,333,038)      2,320,755

Income tax (benefit)/provision                   (1,277,000)      1,008,000

     Net (loss)/ income                      $   (2,056,038)     $1,312,755

(Loss)/income per share:
     Basic                                            ($.19)           $.13

     Diluted                                          ($.19)           $.11


See notes to unaudited condensed consolidated financial statements.


                                3 of 17



              CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


                                               Nine Months Ended April 30,
Revenues:                                            1999             1998
  Net Sales                                    $270,260,223    $306,294,851
  Rentals from real estate                        1,587,256       1,519,010

                                                271,847,479     307,813,861

Cost and expenses:
  Cost of sales                                 194,947,136     227,998,972
  Selling, general and
   administrative expenses                       69,057,221      64,648,948
  Expenses of real estate                      ___1,244,720       1,257,948

                                                265,249,077     293,905,868

     Operating profit                             6,598,402      13,907,993

Gain on sale of real estate                                       1,281,698
Interest income                                     545,831         418,165
Interest expense                                 (5,618,405)     (6,084,065)
Other (deductions) - net                           (458,274)        (41,675)

     Income before income taxes                   1,067,554       9,482,116

Income taxes                                        510,000       3,916,000
     Net income                                    $557,554      $5,566,116

Income per share:
     Basic                                             $.05            $.54

     Diluted                                           $.05            $.40


See notes to unaudited condensed consolidated financial statements.

                                4 of 17



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

                                                Nine Months Ended April 30,
                                                     1999             1998
Operating Activities:
 Net income                                     $  557,554      $5,566,116
 Adjustments to reconcile net income
   to net cash provided by
   operating activities:
 Depreciation and amortization of
  property, plant and equipment                  4,530,760       4,994,908
  Amortization of deferred
   compensation and deferred charges             2,302,656       2,952,056
 Gain on sale of real estate                                    (1,281,698)
 Other, net                                     (1,123,494)     (1,889,791)
 Changes in operating assets and
  liabilities:
   Decrease in accounts
     receivable                                  5,689,554       3,024,062
   (Increase)/decrease in inventory             (1,934,994)     11,627,740
   (Increase) in prepaid
     expense                                    (2,900,185)       (679,302)
   Increase/(decrease)in accounts
   payable, accrued expenses and
   income taxes                                  2,652,660      (8,558,241)
NET CASH PROVIDED BY OPERATING
  ACTIVITIES                                     9,774,511      15,755,850
Investing Activities:
 Proceeds from sale of real estate                               6,685,941
 Sales /(purchases) of marketable
  securities                                       122,932         (33,333)
Purchases of property, plant and
 equipment                                     (6,306,482)      (3,802,970)
Proceeds from/(advances to) co-packer,
 net                                              359,424       (1,014,768)
NET CASH (USED IN)/PROVIDED BY
  INVESTING ACTIVITIES                         (5,824,126)       1,834,870
Financing Activities:
  Proceeds from/(payments of) revolving
   credit and term loans, net                     369,967       (2,930,688)
  (Payment of) convertible subordinated
    debentures                                 (5,000,000)      (5,281,000)
  Loan to employees' stock ownership
   plan                                                         (1,000,000)
NET CASH (USED IN)FINANCING ACTIVITIES         (4,630,033)      (9,211,688)
(Decrease)/increase in Cash and Cash
  Equivalents                                    (676,648)       8,379,032
Cash and Cash Equivalents at Beginning
 of Period                                      6,148,068        4,585,633

Cash and Cash Equivalents at End of Period   $ 5,468,420      $12,964,665


See notes to unaudited condensed financial statements.


                                5 of 17


                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
Conversion of debentures                    21        5
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
  Amortization

Balance at April 30, 1999              11,327   $2,832       476      $6,574


See notes to unaudited condensed consolidated financial statements.

                                      6 of 17



         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                                                           558
Conversion of debentures             153
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization                     244

Balance at April 30, 1999         $1,366           $52,217        $31,406


See notes to unaudited condensed consolidated financial statements.

                             7 of 17


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

                             April  30, 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
        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, 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 10,582,000 and 10,532,000 for the three and nine
        months ended April 30, 1999, respectively, and 10,433,000  and
        10,392,000 for the three and nine months ended April 30, 1998,
        respectively. Diluted per share data, assuming conversion of debentures,
        is based on 20,994,000 and 21,241,000 shares outstanding for the three
        and nine months ended April 30, 1999, respectively and 21,899,000 and
        21,920,000 for the three and nine months ended April 30, 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 $972,000 and $2,996,000 for three
        and nine months ended April 30, 1999, respectively and $1,056,000 and
        $3,205,000 for the three and nine months ended April 30, 1998,
        respectively.  However, for the three and nine month periods ended
        April 30, 1999, the effect of the assumed conversion is anti-dilutive
        and is therefore excluded from the earnings per share calculations.

(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,
                                         1999                 1998
        Finished goods                  $38,771,425         $35,775,998
        Raw materials                    16,496,717          17,539,666
        Supplies                          7,308,161           7,325,645
                                        $62,576,303         $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 April 30, 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 April 30, 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 17



(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.
        Subsequent to April 30, 1999 through June 10, 1999, $1,436,000 of
        the Company's 8% Convertible Subordinated Debentures and $398,000
        of the Company's 7% Convertible Senior Subordinated Debentures were
        converted into 232,202 shares of Company Common Stock.

(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 17


              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 $85,745,000 or 9.0% for
        the three months ended April 30, 1999 compared to $95,496,000 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 7.6% increase in coffee pounds sold (primarily attributable to the
        Park Coffee Company ("Park")acquisition in July 1998). Operating loss
        from beverage products was $988,000 for the three months ended April
        30, 1999 compared to an operating profit of $4,524,000 in the prior
        year's comparable period. The decrease for the three months resulted
        primarily from decreases in gross margins and increases 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 April 30, 1999 prices of green coffee
        ranged from a high of $1.13 to a low of $.97 per pound. Selling,
        general and administrative expenses increased, other than those
        applicable to Park, primarily due to increased advertising, coupon
        costs, compensation costs, delivery costs (resulting from the
        manufacturing transition period for Park and increased coffee pounds
        sold) and professional fees and related expenses incurred in
        connection with the proposed acquisition of the Company by Sarah
        Lee Corporation.

	Net sales from beverage products decreased to $268,386,000 or 11.7%
        for the nine months ended April 30, 1999 compared to $304,042,000 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 7.7% increasein coffee pounds sold (primarily attributable to the
        Park acquisition).  Operating profit from beverage products was
        $7,192,000 a decrease of 52% for the nine months ended April 30, 1999
        compared to the prior year's comparable period. The decrease for the
        nine months resulted primarily from decreases in gross margins and
        increases in selling, general and administrative expenses for
        operations other than Park. Decreased gross margins were primarily due
        an increase in manufacturing costs of approximately $4.5 million
        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 nine months ended April 30,
        1999 prices of green coffee ranged from a high of $1.35 to a low of
        $.97 per pound. Selling, general and administrative expenses increased,
        other than those applicable to Park, primarily due to increased
        delivery costs (resulting from the manufacturing transition period for
        park and increased coffee pounds sold), coupon costs, compensation
        costs and professional fees and related expenses incurred in connection
        with the proposed acquisition of the Company by Sarah Lee Corporation,
        partially offset by decreased amortization of purchased intangibles
        and insurance costs.

10 of 17

	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
        $3,521,000 for nine months ended April 30, 1999 versus $2,364,000, an
        increase of 49% over the comparable 1998 period.  Quikava company-
        operated shop sales were $1,874,000 for the nine months ended April
        30, 1999 compared to $2,253,000 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
        $936,000 for the nine months ended April 30, 1999 compared to
        $1,367,000 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 loss was $2,056,000 ($.19 per basic and diluted share) for the
        three months ended April 30, 1999, compared to net income of
        $1,313,000 ($.13 per basic share and $.11 per diluted share) for
        the comparable period of the prior year. The decrease was primarily
        due to decreased operating profits from beverage products, partially
        offset by an income tax benefit in 1999 versus an income tax in 1998
        (attributable to a loss before income taxes in 1999 and income before
        income taxes in 1998) and to a lesser extent decreased operating
        losses from Quikava.

        Net income was $558,000 ($.05 per basic share and diluted share) for
        the nine months ended April 30, 1999, compared to $5,566,000 ($.54
        per basic share and $.40 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 to a lesser extent 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 April 30, 1999, working capital was approximately $87,500,000
        and the ratio of current assets to current liabilities was 5.0 to 1.

	As of April 30, 1999, the Company had unused borrowing capacity of
	approximately $36 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 and certain conversions of the
        8% Convertible Subordinated Debentures and 7% Convertible Senior
        Subordinated Debentures.

	The Company plans on expanding its Quikava franchised operations,
        which are currently operating in 42 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 17

	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 coffe purchases and
        commitments returned to pricing levels closer to those that existed
        prior to the frosts. In February 1997, green coffee bean

                                        12 of 17

	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	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 nine months of fiscal 1999, the coffee market was in
        the $.97 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 17


        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 Fall 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 nine 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 April 30, 1999, the Company's long-term debt,
        other than capitalized leases, consists of $84 million of fixed rate
        long-term debt (its convertible subordinated debentures) and $4
        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 April 30,
        1999, the total value of coffee contracts was approximately $12.9
        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 April 30, 1999 ($1.04) were to
        increase or decrease by $.15, the effect of such an increase would
        be to decrease inventory by approximately $300,000 and the effect
        of such a decrease would not have a significant effect.  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.






                                14 of 17



	Part II.   Other Information

	Item 1.    	Legal Proceedings

	Since April 26, 1999, seven putative class action lawsuits have been
        filed by alleged Shareholders of the Company against certain officers
        and directors of the Company and the Company, in the Supreme Court of
        the State of New York, styled LAURA BENJAMIN V. CHOCK FULL O'NUTS
        CORP., ET AL., C.A. No. 999108759, SANDRA KAFENBAUM, ET AL.V.MARK A.
        ALEXANDER, ET AL., C.A. No. 99602054, STANILOFF V. ALEXANDER, ET AL.,
        C.A. No. 99602054, VICTOR V. CHOCK FULL O'NUTS  CORP., ET AL., C.A. No.
        99602254, GUTTERMAN V. ALEXANDER, ET AL., C.A. No. 99602412, JANNER V.
        CHOCK FULL O'NUTS CORP. ET AL., C.A. No. 9910826, and BOLLINGER V.
        CHOCK FULL O'NUTS ET AL., C.A. No 99109951.  A motion to   consolidate
        the pending class actions for pre-trial and trial purposes has been
        filed by plaintiffs' counsel with the Court.  In addition, since April
        26, 1999, two shareholder's derivative complaints have been filed by
        alleged Shareholders of the Company against certain officers and
        directors of the Company and, nominally, the Company, (i) in the
        Supreme Court of the State of 	New York, styled HARBOR FINANCE
        PARTNERS AND ALAN FREBURG V. MARVIN I. HAAS, ET AL., No. 99-602013,
        (ii) in the United States District Court for the Southern District
        of New York, styled RICHARD A. ASH V. NORMAN F. ALEXANDER,
        ET AL., No. 99 Civ. 3820.  Each of the class action suits and the
        shareholder's derivative suits set forth substantially similar
        allegations of purported misconduct and breach of fiduciary duties
        by certain officers and directors of the Company and the Board
        related to their conduct and consideration of certain business
        combinations.  Additionally, in the ASH action, plaintiff
        (purportedly on behalf of the Company) has alleged a claim
        arising under the Federal securities laws.  The shareholder
        plaintiffs seek, in each case unspecified damages, attorneys' fees
        and equitable relief, including, among other things, orders
        requiring the individual defendants to carry out their fiduciary
        duties, enjoining them from proceeding with alleged violations
        complained of in the complaints, and requiring certain directors
        to disgorge all profits allegedly earned from purported insider
        stock transactions during the relevant time period.  The Board
        has received a letter from another shareholder demanding that the
        Company bring direct claims against the directors substantially
        similar to the claims set forth above.  By letter dated May 14,
        1999, Company counsel informed counsel for the shareholder who had
        lodged the demand that the Board of Directors had unanimously
        rejected the demand.

	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;

                                                5 of 17



	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



















































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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)



Item Number             Item Description                                 Amount
5-02 (1)                Cash and cash items                       $  5,468,420
5-02 (2)                Marketable securities                     $        -0-
5-02 (3) (a) (1)        Notes and accounts receivable - trade     $ 36,199,406
5-02 (4)                Allowances for doubtful accounts          $  1,438,000
5-02 (6)                Inventory                                 $ 62,576,303
5-02 (9)                Total current assets                      $109,219,828
5-02 (13)               Property, plant and equipment             $112,837,702
5-02 (14)               Accumulated depreciation                  $ 60,877,584
5-02 (18)               Total assets                              $200,359,257
5-02 (21)               Total current liabilities                 $ 21,675,463
5-02 (22)               Bonds, mortgages and similar debt         $ 88,348,675
5-02 (28)               Preferred stock - mandatory redemption    $        -0-
5-02 (29)               Preferred stock - no mandatory redemption $        -0-
5-02 (30)               Common stock                              $  2,831,731
5-02 (31)               Other stockholders' equity                $ 75,683,629
5-02 (32)               Total liabilities and stockholders' equity$ 200,359,257
5-03 (b) 1 (a)          Net sales of tangible products            $ 270,260,233
5-03 (b) 1              Total revenues                            $ 271,847,479
5-03 (b) 2 (a)          Cost of tangible goods sold               $ 194,947,136
5-03 (b) 2              Total costs and expenses applicable to
                        sales and revenues                        $ 196,191,856
5-03 (b) 3              Other costs and expenses                  $        -0-
5-03 (b) 5              Provision for doubtful accounts and notes $   1,529,000
5-03 (b) (8)            Interest and amortization of debt         $   5,618,405
5-03 (b) (10)           Income before taxes and other items       $   1,067,554
5-03 (b) (11)           Income tax expense                        $     510,000
5-03 (b) (14)           Income/loss continuing operations         $     557,554
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                        $     557,554
5-03 (b) (20)           Earnings per share - basic                $         .05
5-03 (b) (20)           Earnings per share - diluted              $         .05




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 14, 1999                             Marvin I. Haas
                                          President and Chief Executive
                                          Officer



June 14, 1999                             Howard M. Leitner
                                          Senior Vice President and
                                          Chief Financial and Accounting
                                                 Officer







































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