<PAGE>

                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                                       
                                 FORM 10-QSB

(Mark One)

[X]       Quarterly report pursuant section 13 or 15(d) of the Securities and 
          Exchange Act of 1934 for the quarterly period ended March 31, 1997.

[ ]       Transition report pursuant to section 13 or 15(d) of the Securities 
          and Exchange Act of 1934 for the transition period from ____________
          to ________________.

                           COMMISSION FILE NUMBER: 0-21932
                                           

                          CALIFORNIA CULINARY ACADEMY, INC.
                 (Exact name of small business issuer in its charter)
                                           

               California                                  94-3042862
(State or other jurisdiction of incorporation   (I.R.S. Employer Identification
           or organization)                                  Number)


           625 Polk Street
          San Francisco, CA                                  94102
(Address of principal executive offices)                  (Zip Code)


Issuer's Telephone Number:  (415) 771-3536


Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act 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        .
             -------    -------

The number of shares outstanding of the registrant's Common Stock as of April 
30, 1997, was 3,352,569.

Transitional Small Business Disclosure Format.  Yes           No    X   .
                                                    --------     -------
<PAGE>

                       CALIFORNIA CULINARY ACADEMY, INC.
                                 BALANCE SHEET  
<TABLE>
<CAPTION>
                                    ASSETS 

                                                (Unaudited)    (Unaudited)    (Unaudited)
                                                  March 31,      June 30,       March 31,
                                                    1996           1996           1997
                                                -----------    -----------    -----------
<S>                                             <C>            <C>            <C>
Current  Assets:
    Cash and cash equivalents                   $ 1,674,000    $ 3,283,000    $ 2,845,000
    Accounts receivable, net                      2,638,000      2,786,000      2,904,000
    Inventories                                     190,000        208,000        310,000
    Prepaid expenses and other assets               324,000        160,000        211,000
    Deferred tax asset                              254,000        145,000
                                                -----------    -----------    -----------
         Total Current Assets                     5,080,000      6,582,000      6,270,000
                                                -----------    -----------    -----------

Property and equipment, net                       4,243,000      4,117,000      4,799,000
Intangible assets, net                              577,000        546,000        451,000
Long-term investments - restricted                                 646,000
Other assets                                        489,000        967,000        553,000
                                                -----------    -----------    -----------
         TOTAL ASSETS                           $10,389,000    $12,858,000    $12,073,000
                                                -----------    -----------    -----------
                                                -----------    -----------    -----------
                                       
                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:                                       
    Accounts payable                            $   510,000    $   749,000    $   347,000
    Accrued liabilities                             334,000        477,000        548,000
    Deferred revenue                              3,607,000      3,795,000      3,696,000
    Student prepayments                             270,000        258,000        342,000
    Current portion of notes payable                250,000        292,000         50,000
    Current portion of capital lease o               84,000         76,000         66,000
    Other current liabilities                                                      26,000
                                                -----------    -----------    -----------
         Total Current Liabilities                5,055,000      5,647,000      5,075,000
                                                -----------    -----------    -----------

Notes payable                                       104,000        500,000          4,000
Capital lease obligations                           230,000        215,000        165,000
Other non-current liabilities                        72,000        441,000        436,000

 
Subordinated convertible notes payable                           1,400,000
Shareholders' Equity:
    Convertible Preferred stock, no par 
      value, 5,000,000 shares authorized,
      254,541 shares issued and outsta                                            967,000
    Common stock, no par value, 
      20,000,000 shares authorized,   
      3,352,319 shares issued and outs            8,377,000      8,741,000      9,289,000
    Accumulated deficit                          (3,449,000)    (4,086,000)    (3,863,000)
                                                -----------    -----------    -----------
         Total Shareholders' Equity               4,928,000      4,655,000      6,393,000
                                                -----------    -----------    -----------
         TOTAL LIABILITIES AND 
           SHAREHOLDERS' EQUITY                 $10,389,000    $12,858,000    $12,073,000
                                                -----------    -----------    -----------
                                                -----------    -----------    -----------
 
</TABLE>

                                       2
<PAGE>

                       CALIFORNIA CULINARY ACADEMY, INC.
                            STATEMENTS OF OPERATIONS
         FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 1997 AND 1996   

<TABLE>
<CAPTION>
                                                             (Unaudited)                    (Unaudited)
                                                          Three Months Ended             Nine Months Ended
                                                               March 31,                     March 31,
                                                       -------------------------    --------------------------
                                                          1997           1996          1997            1996
                                                       ----------     ----------    -----------    -----------
<S>                                                    <C>            <C>           <C>            <C>
Revenues:
    Culinary arts education                            $3,401,000     $3,413,000    $ 9,433,000    $ 9,243,000
    Restaurants & catering                                623,000        465,000      1,700,000      1,521,000
    Retail, media and other                                97,000        120,000        306,000        427,000
                                                       ----------     ----------    -----------    -----------
        Total revenues                                  4,121,000      3,998,000     11,439,000     11,191,000

Cost of sales
    Food & beverage                                       478,000        446,000      1,263,000      1,290,000
    Program supplies                                      256,000        127,000        612,000        490,000
    Scholarships & grants                                  50,000         67,000        159,000        137,000
    Merchandise & other                                   110,000        130,000        375,000        416,000
                                                       ----------     ----------    -----------    -----------
                                                          894,000        770,000      2,409,000      2,333,000
                                                       ----------     ----------    -----------    -----------
Gross Margin                                            3,227,000      3,228,000      9,030,000      8,858,000

Fixed costs
    Occupancy                                             432,000        435,000      1,307,000      1,307,000
    Repairs & maintenance                                 107,000         92,000        294,000        326,000
    Telephone, security & other                           100,000        139,000        283,000        344,000
    Depreciation & amortization                           314,000        270,000        878,000        788,000
                                                       ----------     ----------    -----------    -----------
        Total fixed costs                                 953,000        936,000      2,762,000      2,765,000

Operating expenses
    Compensation & benefits                             1,586,000      1,573,000      4,225,000      4,614,000
    Outside services                                       76,000        167,000        378,000        529,000
    Advertising & promotion                               141,000        158,000        409,000        535,000
    Legal & other                                         292,000        290,000        805,000        917,000
                                                       ----------     ----------    -----------    -----------
                                                        2,095,000      2,188,000      5,817,000      6,595,000

    Interest income (expense)                              13,000         (4,000)        26,000        (18,000)
                                                       ----------     ----------    -----------    -----------
    Income (loss) before provision for income taxes       192,000        100,000        477,000       (520,000)

Income tax provision (benefit)                             77,000         42,000        191,000       (158,000)
                                                       ----------     ----------    -----------    -----------
    Net income (loss)                                    $115,000        $58,000       $286,000      $(362,000)
                                                       ----------     ----------    -----------    -----------
                                                       ----------     ----------    -----------    -----------
Net income (loss) per share                                 $0.03          $0.02          $0.08         $(0.11)
                                                       ----------     ----------    -----------    -----------
                                                       ----------     ----------    -----------    -----------
Weighted average common shares and equivalents          3,698,791      3,318,958      3,654,156      3,294,630
                                                       ----------     ----------    -----------    -----------
                                                       ----------     ----------    -----------    -----------
</TABLE>

                                       3
<PAGE>

                       CALIFORNIA CULINARY ACADEMY, INC.
                           STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED MARCH 31, 1997 AND 1996

<TABLE>
<CAPTION>
 
                                                                       (Unaudited)
                                                               NINE MONTHS ENDED MARCH 31,
                                                               --------------------------
                                                                  1997             1996
                                                               -----------     ----------
<S>                                                            <C>             <C>                
Cash flows from operating activities:
 Net income (loss)                                             $   286,000     $ (362,000)
 Adjustments to reconcile net income (loss) to net                     
  cash provided by (used in) operating activities:
    Depreciation and amortization                                  878,000        784,000
    Tax provision                                                  191,000       (158,000)
    Provision for losses on accounts receivable                      9,000        (48,000)
    Gain on disposal of property                                     2,000
    Deferred rent                                                    7,000
    Stock issued for services                                                      13,000
Changes in assets and liabilities:
    Accounts receivable                                           (126,000)       726,000
    Inventories                                                   (102,000)        68,000
    Prepaid expenses and other assets                             (100,000)      (254,000)
    Accounts payable                                              (402,000)      (291,000)
    Accrued and other liabilities                                   59,000       (115,000)
    Deferred revenues                                              (99,000)      (752,000)
    Student prepayments                                             84,000         39,000
    Other non-current liabilities                                                 (15,000)
                                                               -----------     ----------
       Net cash provided by (used in) operating activities         687,000       (365,000)
                                                               -----------     ----------

Cash flows from investing activities:                                     
 Acquisition of property and equipment                          (1,465,000)      (158,000)
 Decrease in long-term investments                                 646,000
                                                               -----------     ----------
       Net cash used in investing activities                      (819,000)      (158,000)
                                                               -----------     ----------

Cash flows from financing activities:                                     
 Principal payments on term loan agreements                       (738,000)      (188,000)
 Principal payments on capital lease obligations                   (59,000)       (57,000)
 Proceeds from exercise of stock options and warrants            1,265,000         83,000
 Repurchase of common stock                                       (717,000)
 Payment of Preferred Stock dividends                              (37,000)
 Cost of Offering - Preferred Stock                                (20,000)
                                                               -----------     ----------
       Net cash used in financing activities                      (306,000)      (162,000)
                                                               -----------     ----------
Net decrease in cash and cash equivalents                         (438,000)      (685,000)

Cash and cash equivalents, beginning of period                   3,283,000      2,359,000
                                                               -----------    -----------
Cash and cash equivalents, end of period                       $ 2,845,000     $1,674,000
                                                               -----------     ----------
 
</TABLE>

                                       4
<PAGE>

                       CALIFORNIA CULINARY ACADEMY, INC.
                           STATEMENTS OF CASH FLOWS


Supplemental disclosure of cash paid for:

                                  FOR THE NINE MONTHS ENDED
                                          MARCH 31,
                                        1997      1996
                                      -------   -------
     Interest                         $43,000   $64,000
     Income taxes                      10,000     9,000
    
Supplemental disclosure of non-cash investing and financing activities:

 
The Academy issued 254,541 shares of Series A Preferred Stock upon conversion 
of $1,400,000 of Convertible Subordinated Debt for the nine months ended March
31, 1997.
 

 
The Academy issued a promissory note of approximately $157,000 for the 
repurchase of Common Stock for the nine months ended March 31, 1997.
 

The Academy entered into a capital lease obligation for approximately 
$190,000 for the nine months ended March 31, 1996.


                                       5
<PAGE>

                       CALIFORNIA CULINARY ACADEMY, INC.
                     CONDENSED NOTES TO FINANCIAL STATEMENTS
                                           

NOTE 1 -- BASIS OF PRESENTATION

The accompanying unaudited, condensed financial statements and related 
footnotes have been prepared in accordance with generally accepted accounting 
principles. The balance sheet as of March 31, 1997 and related statements of 
operations and cash flows for the three and nine months ended March 31, 1997 
and 1996 are unaudited, but have been prepared on substantially the same 
basis as the annual audited financial statements.  In the opinion of 
management, the unaudited financial statements reflect all adjustments, 
consisting only of normal recurring adjustments, necessary for a fair 
presentation of the financial position, operating results and cash flows for 
those periods presented.  The unaudited results for the three and nine months 
ended March 31, 1997 are not necessarily indicative of results to be expected 
for the entire year.

Certain prior year amounts have been reclassified to conform to current year 
presentation.

NOTE 2 -- INCOME TAXES

Deferred taxes are recorded based upon differences between the financial 
statement and tax basis of assets and liabilities and available tax 
carryforwards.  The principal temporary differences that result in deferred 
tax assets and liabilities are certain expenses accrued for financial 
reporting purposes not deductible for tax purposes until paid, depreciation 
for income tax purposes in excess of depreciation for financial reporting 
purposes and unused net operating losses.

As of March 31, 1997 the Academy has federal and California net operating 
loss carryforwards, for tax return purposes, of approximately $2,205,000 and 
$989,000, respectively, which are available to offset future taxable income, 
if any.  Federal and California net operating loss carryforwards, if unused, 
are scheduled to expire as follows:

                Year ended        Federal     California
                ----------     ----------      --------
                 6/30/1997                     $337,000
                 6/30/2001                     $652,000
                 6/30/2004     $  290,000
                 6/30/2005      1,360,000
                 6/30/2011        555,000
                               ----------      --------
                               $2,205,000      $989,000
                               ----------      --------

A valuation allowance has been provided for that portion of net operating 
losses and deferred tax assets where it is more likely than not that the 
future tax benefits of these items will not realized.

                                       6
<PAGE>

NOTE 3 -- NET INCOME PER SHARE

Net income per share is based on the weighted average number of shares 
outstanding during each of the respective periods, including the dilutive 
effect of stock options, warrants and any other common stock equivalents 
using the treasury stock method.

NOTE 4 -- BANK DEBT

As of March 31, 1997, the Academy had no outstanding loans with banks.

The Academy had a term loan with a bank which provided for borrowings up to 
$750,000 with interest at 1% above the prime rate of the bank, the proceeds 
of which were used to finance the purchase of new equipment.  The financing 
agreement contained various affirmative covenants including certain covenants 
and ratios which the Academy was required to maintain.  As of September 30, 
1996, the Academy was in violation of certain covenants as follows:  other 
indebtedness not to exceed $250,000 at anytime; net income not less than 
$1.00 on a cumulative quarterly basis beginning with the quarter ended 
12/31/95; and EBITDA Coverage Ratio not less than 2.00 .  "EBITDA" is defined 
as net profit before interest expense, income tax expense, depreciation and 
amortization expense.  "EBITDA Coverage Ratio" is defined as EBITDA divided 
by the aggregate of total interest expense plus prior period current maturity 
of long-term debt and the prior period maturity of subordinated debt.  The 
term loan was repaid during October 1996.

In June 1996, the Academy obtained a term loan from a bank in the amount of 
$500,000, the proceeds of which were used for working capital requirements.  
The line of credit was collateralized by a certificate of deposit at the same 
bank in the amount of $500,000.  The term loan was repaid during October 1996.

NOTE 5 -- PREFERRED STOCK

 
During March 1996 and July 1996, the Board of Directors and shareholders, 
respectively, authorized the Academy to issue up to 5,000,000 shares of 
Preferred Stock in one or more series to be determined by the Board of 
Directors from time to time.  An amendment to the Articles of Incorporation 
authorizing the issuance of Preferred Stock was filed with the California 
Secretary of State in August 1996.  On August 23, 1996, the Academy became 
legally authorized to issue up to 700,000 shares of Series A Preferred Stock. 
 On the same date, the entire issue of Convertible Subordinated Notes in the 
aggregate principal amount of $1,400,000 automatically converted to 254,541 
shares of Series A Preferred Stock.  The preferred stock was recorded net of 
$433,000 of issuance costs.  

                                       7
<PAGE>

if declared by the Board of Directors, with a liquidation preference of $5.50 
per share, plus accrued dividends.  Although the Series A Preferred Stock is 
nonvoting, in the event the Academy fails to pay a quarterly dividend, a 
meeting of the Board of Directors can be called at which the holders of the 
Series A Preferred Stock will be entitled to elect one-third of the Academy's 
Board of Directors.  Upon payment of the missed dividend(s), the right to 
elect one-third of the Board will be rescinded.  Each share of Series A 
Preferred Stock is convertible at the option of the holder into the Academy's 
Common Stock at the conversion price of $5.50 per share.  After February 23, 
1997, each share of Series A Preferred Stock will convert automatically if 
the closing price of the Common Stock equals or exceeds $8.00 for 20 
consecutive trading days.  Certain provisions for price protection are set 
forth in the terms of the Series A Preferred Stock, but in no event will the 
conversion price be less than $3.50.

 
In connection with the offer and sale of the convertible subordinated notes, 
the Academy granted certain registration rights. Certain penalties are 
payable to the Preferred shareholders in an amount equal to one percent of 
the principal per month in the event that a registration statement covering 
the resale of the Common Stock issuable upon conversion is not effective 
within 90 days of (i) the date on which the Academy became legally authorized 
to issue the Series A Preferred Stock and the Notes automatically convert 
into Preferred Stock, or (ii) the date on which 100% of the Notes have been 
converted to Common Stock.  The penalty became payable as of November 23, 
1996 unless the Academy used its best efforts to have the registration 
statement for the resale of Common Stock issuable upon conversion of the 
Series A Preferred Stock was declared effective by the Securities and 
Exchange Commission.  Management believes it has used its best efforts in 
this regards. On April 15, 1997, the registration statement to register for 
resale the Common Stock underlying the Series A Preferred Stock was declared 
effective by the Securities and Exchange Commission.
 

NOTE 6 -- PROMISSORY NOTES

 
In July 1996, a prior executive officer of the Academy elected to exercise 
approximately 112,000 vested stock options.  The Academy subsequently entered 
into a transaction with this prior officer, wherein the Academy purchased and 
retired this stock in exchange for approximately $717,000, which approximated 
fair market value and was comprised of approximately $560,000 in cash and 
$157,000 in promissory notes bearing an interest rate of 8.75%.  As of March 
31, 1997, the outstanding balance of these notes was approximately $38,000. 
Interest is to be paid monthly on the notes until January 1, 1998, when the 
note is due.
 

NOTE 7 -- RELATED-PARTY TRANSACTIONS

 
In July 1996, the Academy entered into a five-year lease for an approximately 
3,800 square foot facility in Salinas, California.  The lessor is a 
partnership controlled by the principal shareholder, Chief Executive Officer 
and Chairman of the Board of Directors and another individual who is a 
principal shareholder and former member of the Board of Directors.  The new 
facility is an extension campus, which opened in October 1996.  The monthly 
rent for the facility is the greater of $3,900 or 8% of gross sales plus a 
share of common area and exterior maintenance charges.  The Academy paid a 
lease acquisition fee of $150,000 upon execution of the lease 
 
                                       8
<PAGE>

agreement.  The lease acquisition fee will be amortized over the 10-year term 
of the lease.  The lease agreement includes a termination clause subject to 
revenue performance at the extension campus during the first twelve months of 
operations and a termination fee should the Academy invoke the termination 
clause.

In July 1992 and from time to time prior to August 1, 1991, the Chairman of 
the Board and two other individuals who were then members of the Board of 
Directors, all principal shareholders, made unsecured loans to the Academy.  
These loans were evidenced by promissory notes and subsequently repaid.  The 
loans carried interest at then prevailing interest rates and called for 
warrants to be issued that entitled the holders thereof to purchase an 
aggregate of 94 shares of the Academy's then-existing Series A Preferred 
Stock.  Warrants issued in conjunction with these loans were converted, 
concurrently with the completion of the Initial Public Offering in July 1993, 
into warrants to purchase 102,770 shares of common stock at an exercise price 
of $4.18 per share.  In August 1996, all warrants were exercised to purchase 
102,770 shares of common stock.

In August 1992, the Academy issued warrants to a shareholder who is related 
to the Chairman of the Board of Directors to purchase 20 shares of its 
then-existing Series A preferred stock at $8,000 per share.  These warrants 
were converted, concurrently with the completion of the Initial Public 
Offering in July 1993, into warrants to purchase 23,900 shares of common 
stock at an exercise price of $4.18.  In August 1996, all warrants were 
exercised to purchase 23,900 shares of common stock.

 
In June 1996, the Academy issued 25,454 warrants at $6.625 per share to the 
company serving as the selling agent of Convertible Subordinated Notes 
("Notes"). The Chairman and President of the selling agent company is a 
member of the Academy's Board of Directors.  As selling agent of the Notes, 
the company was paid $189,000 for commission and fees and was entitled to 
warrants to purchase Common Stock equal to 10% of the number of shares issued 
upon conversion of the Notes to Series A Preferred Stock.
 

NOTE 8 -- NEW ACCOUNTING STANDARDS

 
In February 1997, the Financial Accounting Standards Board issued Statement 
of Financial Accounting Standards No. 128, "Earnings Per Share". The Company 
is required to adopt SFAS No. 128 in the second quarter of fiscal 1998 and 
will restate at that time earnings per share (EPS) data for prior periods to 
conform with SFAS No. 128. Earlier application is not permitted.

SFAS No. 128 replaces current EPS reporting requirements and requires a dual 
presentation of basic and diluted EPS. Basic EPS excludes dilution and is 
computed by dividing net income available to common shareholders by the 
weighted average number of shares outstanding for the period. Diluted EPS 
reflects the potential dilution that could occur if securities or other 
contracts to issue common stock were exercised or converted in to common 
stock.

Pro-forma amounts for basic and diluted EPS assuming SFAS No. 128 had been in 
effect for the quarter and year-to-date periods are as follows:

                        FOR THE QUARTER ENDED       FOR THE NINE MONTHS ENDED
                        3/31/97       3/31/96       3/31/97           3/31/96
                      -----------   -----------   -----------       -----------

         Basic            $0.03         $0.02         $0.07           $(0.11)

         Diluted          $0.03         $0.02         $0.07           $(0.11)

 

 
During fiscal 1997, the Academy will adopt SFAS No. 121, "Accounting for the 
Impairment of Long-Lived Assets and Long-Lived Assets Disposed of."  SFAS No.
121 establishes recognition and measurement criteria for impairment losses 
when the Company no longer expects to recover the carrying value of a 
long-lived asset. The effect on the financial statements of adopting SFAS No. 
121 has not been determined.
 

 
The Company is required to adopt SFAS No. 123, "Accounting for Stock-based 
Compensation" during fiscal 1997.  SFAS No. 123 establishes accounting and 
disclosure requirements using a fair value based method of accounting for 
stock-based employee compensation plans.  Under SFAS No.  123, the Company 
may either adopt the new fair value based accounting method or continue the 
intrinsic value method and provide pro-forma disclosures of net income and 
earnings per share as if the accounting provisions of SFAS No. 123 had been 
adopted.  The Company will adopt the disclosure requirement of SFAS No. 123 
and will include such information in its financial statements for the fiscal 
year ending June 30, 1997. 
 

                                       9 
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS

OVERVIEW
The Academy's revenues are derived primarily from culinary arts education and 
incidentally from restaurant, retail and media operations.  Culinary arts 
education primarily consists of the A.O.S. Culinary Arts Degree Program, the 
30-week Baking & Pastry Arts Certificate Program, College of Food Culinary 
Skills and Baking and Pastry Skills, continuing professional education 
programs and consumer education classes. Starting in June 1996, the A.O.S. 
Culinary Arts Degree Program began enrollment on a two week cycle.  The 
program can accommodate up to 29 students per enrollment period.  Previously 
the A.O.S. Degree Program enrolled an average of approximately 80 students 
per enrollment period with six enrollments per year.  The 30-week Baking & 
Pastry Arts Certificate Program enrolled classes ranging from 15 to 20 
students.  As of March 31, 1997, there were 574 A.O.S. students and 76 Baking 
& Pastry students enrolled in the Academy.

The change in class size and the change in the enrollment cycle for the 
A.O.S. program from every two months to every two weeks was made to enable 
student enrollments to be managed more effectively.  With an increased number 
of choices of start dates for students, the Academy is better able to manage 
individual student start dates to optimize class sizes.  Additionally, the 
Academy is able to manage faculty labor costs and other program costs due to 
more predictable class sizes.  

Consumer education consists of avocational and team building programs. The 
Academy's team building programs offer groups the use of the Academy's 
professional kitchens under the guidance of a chef instructor.  This form of 
team building is an alternative to other forms of combined business and 
social interaction such as river rafting and sporting event outings.  
Restaurant and retail operations include two restaurants and two private 
dining rooms generally open to the public six days per week, banquet services 
generally offered seven days per week and a small on-site retail shop 
offering student prepared foods, beverages, cookbooks, video tapes, kitchen 
wares and selected clothing.  Media operations primarily consist of the 
marketing of the "Cooking at the Academy" television series and the licensing 
of the Academy's name and cookbook content for use in a series of cookbooks.

The Academy believes that manageable growth is achievable through the 
addition of remote training facilities such as its College of Food campus at 
Salinas, California (opened in October 1996) and by the addition of programs 
to be offered to the food industry such as contract training and research and 
development in the areas of product development, menu development, and 
restaurant design.  In order to facilitate this revised strategy, the Academy 
formed the CCA Development Company whose mission is to develop programs and 
knowledge-based products which complement the education which the Academy 
already provides.

                                       10
<PAGE>

 
While management believes that this revised strategy will enable it to 
significantly increase revenues by providing additional educational, training 
and consultative resources to the food industry, there can be no assurance 
that management will be able to successfully implement such a strategy or 
that it will increase revenues significantly or at all.
 

Except for historical information contained herein this report contains 
forward-looking statements within the meaning of Section 27A of the 
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 
1934.  The forward-looking statements contained herein are based upon current 
expectations, and actual results may differ materially.  Forward-looking 
statements contained in this Report involve numerous risks and uncertainties, 
including those discussed in this Report and the Academy's Annual Report on 
Form 10-KSB for the fiscal year ended June 30, 1996, that could cause actual 
results to differ materially from those projected.

 
The primary risks and uncertainties that could affect future results include, 
without limitation, (i) the event of a net loss of $999,000 for the year 
ended June 30, 1996 from which there can be no assurance that the recent 
efforts will be successful in achieving profitable operations, or if 
achieved, that profitability can be sustained in future periods; (ii) the 
inability of management to successfully implement and manage the Academy's 
new growth strategy of adding more remote training facilities and new 
programs to be offered to the foodservice industry; (iii) uncertainties 
associated with overhauling the structure of the A.O.S. degree program 
enrollment process and the inability of the Academy to make appropriate 
adjustments in a timely manner; (iv) the increased competition from both 
for-profit and non-profit culinary arts education institutions; (v) the 
continued dependence on financial aid programs to fund a majority of 
Academy's students' education, thereby providing a significant portion of the 
Academy's revenues, together with the uncertainty that budgetary constraints 
or other factors in the future could impact the availability and amount of 
both public and private sources of financial aid; (vi) increase of the 
Academy's cohort default rate, the percentage of Academy students who have 
defaulted on repayment of government student loans, which could in the future 
impair or limit the Academy's participation in government financial aid 
programs; and (vii) the possibility that regulatory agencies that directly or 
indirectly impact aspects of the Academy's business could revise regulations 
in such a way that the Academy would not be able to comply with new 
regulations in a timely manner.
 

Investors are cautioned not to place undue reliance on these forward-looking 
statements, which reflect management's analysis only as of the date hereof.  
The Academy undertakes no obligation to publicly release the results of any 
revision to these forward-looking statements that may be made to reflect 
events or circumstances after the date hereof or to reflect the occurrence of 
unanticipated events.

RESULTS OF OPERATIONS
The Academy had net income of $115,000 or $0.03 per share for the quarter 
ended March 31, 1997 compared to net income of $58,000 or $0.02 per share for 
the quarter ended March 31, 1996.  The Academy had net income of $286,000 or 
$0.08 per share for the nine months ended March 31, 1997 compared to net loss 
of $362,000 or $(0.11) for the nine months ended March 31, 1996.

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<PAGE>

 
 

Net income for the quarter and the nine months ended March 31, 1997 reflects 
continuing operations of the Academy's main campus in San Francisco and the 
opening in October 1996 of the College of Food campus in Salinas, California.

 
                            FOR THE QUARTER ENDED  FOR THE NINE MONTHS ENDED
                              3/31/97  3/31/96       3/31/97    3/31/96
                             --------  -------      ---------  ---------
NET INCOME (LOSS):
Main Campus                  $160,000  $58,000      $ 401,000  $(362,000)
College of Food               (45,000)               (115,000)
                             --------  -------      ---------  ---------
                             $115,000  $58,000      $ 286,000  $(362,000)
                             --------  -------      ---------  ---------
                             --------  -------      ---------  ---------

PRIMARY EARNINGS PER SHARE DATA:
Main Campus                    $ 0.04    $0.02         $ 0.11     $(0.11)
College of Food                 (0.01)                  (0.03)
                             --------  -------      ---------  ---------
                               $ 0.03    $0.02         $ 0.08     $(0.11)
                             --------  -------      ---------  ---------
                             --------  -------      ---------  ---------
 

 
Management believes improved operating results at the Main Campus are a 
result of the changes to the enrollment program and restructuring implemented 
in the last quarter of fiscal 1996.  The results from the College of Food 
reflect the opening of the first extension campus in Salinas in October 1996 
and the initial cost of operations.  Management believes these costs are an 
investment in the development and growth of the College of Food concept.
 

Total revenues for the quarter were $4,121,000 compared to $3,998,000 for the 
same quarter last year, an increase of $123,000 or 3.1%.  Total revenues for 
the nine months ended March 31, 1997 were $11,439,000, an increase of 
$248,000 or 2.2% from the same period in the prior year.

 
Revenues from culinary arts education, which typically account for 
approximately 80% of total revenues, for the quarter were $3,401,000 compared 
to $3,413,000 for the same quarter last year, a decrease of $12,000 or 0.4%.  
The decrease during the quarter was due primarily to Christmas break schedule 
changes resulting in fewer revenue recognition days in the third quarter of 
1997 compared to the same quarter in the prior year.  Culinary arts education 
revenues for the nine months ended March 31, 1997 were $9,433,000 compared to 
$9,243,000 for the same period last year, an increase of $190,000 or 2.1%.  
The increase is due primarily to higher program fees and lower student 
attrition rate.
 

Enrollment in the A.O.S. Culinary Arts Degree Program and Baking & Pastry 
Certificate Program totaled 650 students as of March 31, 1997 compared to 659 
students as of March 31, 

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<PAGE>

 
1996, a decrease of 9 students or 1.4%.  The decrease in ending enrollments 
was expected due to the change in the A.O.S. Culinary Arts Degree Program 
enrollment structure wherein smaller class sizes are enrolled with greater 
frequency.  Due to the fact that classes graduating had been higher in size 
than starting classes for a period of time, ending enrollment count was 
depressed.  Management believes that this depressive effect is substantially 
over by the end of the third quarter of 1997.  New  student enrollments 
totaled 472 for the nine months ended March 31, 1997 compared to 442 students 
for the same period in the prior year, an increase of 6.8%. Management 
believes the increase is the result of changes to improve A.O.S. Degree 
Program curriculum; change in the enrollment cycle to admit smaller classes 
with greater frequency; and improvements to the enrollment management process 
and the restructuring of its Admissions Department.  Management believes the 
increased enrollment activity is evidence that the actions taken to correct 
prior declining enrollments have proven successful.  There can be no 
assurance, however, that management's corrective actions will be continue to 
be successful or that enrollments or revenues will increase in the future.
 

 
Restaurant and catering revenues for the quarter ended March 31, 1997 were 
$623,000 compared to $465,000 for the same quarter last year, an increase of 
$158,000 or 34.0%. Restaurant and catering revenues for the nine months ended 
March 31, 1997 were $1,700,000 compared to $1,521,000 for the same period 
last year, an increase of $179,000 or 11.8% from the same period in the prior 
year.  The increase is primarily due to higher banquet sales.
 

 
Retail, media and other revenues for the quarter were $97,000 compared to 
$120,000 for the same quarter last year, a decrease of $23,000 or 19.2%. 
Retail, media and other revenues for the nine months ended March 31, 1997 
were $306,000 compared to $427,000 for the same period in the prior year, a 
decrease of $121,000 or 28.3%.  The decrease is due primarily to lower sales 
in the Academy's retail store, which was relocated within the San Francisco 
facility during December 1996 and the conversion of the former store into a 
kitchen, offset by higher book royalty revenue.
 

Total cost of sales for the quarter ended March 31, 1997 were $894,000 
compared to $770,000 for the same quarter last year, a increase of $124,000 
or 16.1%.  Total cost of sales for the nine months ended March 31, 1997 were 
$2,409,000 compared to $2,333,000 for the same period last year, an increase 
of $76,000 or 3.3%.  The increase is primarily related to higher program 
supplies cost as a result of higher number of enrolling students, offset by 
lower cost of food and beverage resulting from purchasing and inventory 
management efficiencies.

 
Total fixed costs for the quarter ended March 31, 1997 were $953,000 compared 
to $936,000 for the same quarter last year, an increase of $17,000 or 1.8%.  
The increase is due primarily to higher depreciation and amortization expense 
related to additional capital expenditures, including equipment and leasehold 
improvements for the Academy's first extension campus during the nine months 
ended March 31, 1997, offset by reductions in telephone, security and other 
costs. Total fixed costs for the nine months ended March 31, 1997 were 
$2,762,000, a decrease of $3,000 or 0.1% from the same period in the prior 
year.  The decrease is due primarily to lower telephone, security and other 
costs as well as lower repair and maintenance costs, offset by higher 
depreciation and amortization expense.
 

                                       13
<PAGE>

 
Total operating expenses for the quarter ended March 31, 1997 were $2,095,000 
compared to $2,188,000 for the same quarter last year, a decrease of $93,000 
or 4.3%.  Total operating expense for the nine months ended March 31, 1997 
were $5,817,000 compared to $6,594,000 for the same period last year, a 
decrease of $777,000 or 11.8% from the same period in the prior year.  The 
decrease is primarily related to lower compensation and benefits expense, 
reduction in outside services and lower advertising and promotion expense 
resulting from the Academy's restructuring plan implemented during the fourth 
quarter of fiscal year 1996.
 

LIQUIDITY AND CAPITAL RESOURCES
Historically, the Academy financed its growth from the issuance of equity 
securities in private and public transactions, borrowings from related 
parties, lease and debt financing obligations and through cash flow provided 
by operations.

 
At March 31, 1997, the Academy's principal sources of liquidity included cash 
and cash equivalents of $2,845,000 and net accounts receivable of $2,904,000 
compared to $3,284,000 and $2,787,000 as of June 30, 1996, respectively.  The 
decrease in cash and cash equivalents is  due primarily to the Academy's 
using cash and cash flow from operations to fund capital expenditures.  The 
increase in net accounts receivable is due primarily to increase enrollments. 
The Academy has long-term obligations of $605,000 and working capital of 
$1,195,000 at March 31, 1997 compared to $2,556,000 and $935,000 as of June 
30, 1996.  The decrease in long-term obligations is due primarily to the 
conversion of $1,400,000 of subordinated debt to Series A Preferred Stock in 
August 1996.
 

As of March 31, 1997, the Academy had no outstanding loans with banks.  Other 
term loans aggregate in the amount of $54,000.  As of June 30, 1996, the 
Academy had $792,000 of outstanding term loans with banks and $24,000 in 
other term loans.


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<PAGE>

                                    PART II
                                       
ITEM 1.  LEGAL PROCEEDINGS 
There are various legal claims and lawsuits pending by and against the 
Academy that, in the opinion of management, after consultation with legal 
counsel, are not expected to have in any material adverse effect on the 
results of operations or financial position of the Academy.

ITEM 2.  CHANGES IN SECURITIES                        None

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES              None

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 
(a).     The annual meeting of the shareholders' was held on March 15, 1997.
Five directors were elected.  The vote was as follows:

                                               NUMBER OF SHARES
         NAME                             FOR        AGAINST     ABSTAIN
         ---------------------         ---------     -------     -------
         Theodore G. Crocker           3,089,869      None       130,205
         W. Bruce G. Bailey            2,957,366      None       130,205
         James D. Cockman              2,949,766      None       137,805
         Frederick L. Dame             2,949,766      None       137,805
         Grover T. Wickersham          2,957,366      None       130,205


         All directors were elected to one year terms.

(b.)     The shareholders' ratified the appointment of Deloitte & Touche, LLP 
as the Academy's independent public accountants.  The vote was as follows:
 

                                NUMBER OF SHARES
                            FOR        AGAINST   ABSTAIN
                         ---------     -------   -------
                         2,954,316     127,285    5,970


ITEM 5.  OTHER INFORMATION                            None

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a.) EXHIBITS

      EXHIBIT NO.        DESCRIPTION
      -----------       ------------------------------------------------------
         11.0           Statement re:  Computation of Earnings per Share

         27.0           Financial Data Schedule

         (b.) REPORTS ON FORM 8-K None


                                       15
<PAGE>

                                  SIGNATURES
                                       
In accordance with the requirements of the Securities Exchange Act of 1934, 
as amended, the registrant caused this report to be signed on its behalf by 
the undersigned, thereunto duly authorized.

                                           CALIFORNIA CULINARY ACADEMY, INC.

May 15, 1997                           By:  /s/  Robert A. Stoffregen
                                          ------------------------------------
                                           Robert A. Stoffregen
                                           Executive Vice President and
                                           Chief Financial Officer
                                           (Principal Accounting and Financial
                                           Officer)



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