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                                 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 DECEMBER 31, 1998.
 
    / /    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)
 
<TABLE>
<S>                                     <C>
            CALIFORNIA                              94-3042862
  (State or other jurisdiction of         (I.R.S. Employer Identification
  incorporation or organization)                      Number)
 
 625 POLK STREET SAN FRANCISCO, CA                     94102
  (Address of principal executive                   (Zip Code)
             offices)
</TABLE>
 
                   Issuer's Telephone Number: (415) 771-3536
 
                            ------------------------
 
    Indicate by check mark 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
December 31, 1998, was 3,815,431.
 
    Transitional Small Business Disclosure Format.    Yes / /    No /X/.
 
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<PAGE>
PART I--FINANCIAL INFORMATION
 
ITEM 1.  FINANCIAL STATEMENTS
 
                       CALIFORNIA CULINARY ACADEMY, INC.
 
                            CONDENSED BALANCE SHEETS
 
                             (DOLLARS IN THOUSANDS)
 
<TABLE>
<CAPTION>
                                                                            DECEMBER 31   JUNE 30,   DECEMBER 31,
                                                                                1998        1998         1997
                                                                            ------------  ---------  ------------
                                                                            (UNAUDITED)   (NOTE 1)   (UNAUDITED)
<S>                                                                         <C>           <C>        <C>
                                                     ASSETS
 
Current Assets:
  Cash and cash equivalents...............................................   $      770   $   2,533   $    1,293
  Accounts receivable, net of allowance...................................        4,437       3,660        3,397
  Inventories.............................................................          249         227          291
  Prepaid expenses and other assets.......................................          514         379          581
                                                                            ------------  ---------  ------------
    Total Current Assets..................................................        5,970       6,799        5,562
                                                                            ------------  ---------  ------------
Property and equipment, net...............................................        7,938       4,830        7,000
Other assets..............................................................          667         647          646
                                                                            ------------  ---------  ------------
    TOTAL ASSETS..........................................................   $   14,575   $  12,276   $   13,208
                                                                            ------------  ---------  ------------
                                                                            ------------  ---------  ------------
 
                                      LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current Liabilities:
  Accounts payable and accrued liabilities................................   $      923   $   1,383   $    1,056
  Deferred revenue........................................................        4,344       4,737        4,011
  Current portion of long term debt.......................................          166          75           89
  Other current liabilities...............................................          475                      401
                                                                            ------------  ---------  ------------
    Total Current Liabilities.............................................        5,908       6,195        5,557
                                                                            ------------  ---------  ------------
Long Term Debt............................................................        2,244          97        1,324
                                                                            ------------  ---------  ------------
    TOTAL LIABILITIES.....................................................        8,152       6,292        6,881
                                                                            ------------  ---------  ------------
Convertible preferred stock, no par value, 5,000,000 shares authorized,
  1998: 0 and 1997: 254,500 issued and outstanding........................                                    91
Common stock, no par value, 20,000,000 authorized, 1998: 3,814,431 and
  3,795,350; 1997: 3,568,500 issued and outstanding.......................       11,355      11,351       11,165
Note receivable from 1998: shareholder, 1997: shareholders................         (511)       (489)        (530)
Deficit...................................................................       (4,421)     (4,878)      (4,399)
                                                                            ------------  ---------  ------------
    Total Shareholders' Equity............................................        6,423       5,984        6,327
                                                                            ------------  ---------  ------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY............................   $   14,575   $  12,276   $   13,208
                                                                            ------------  ---------  ------------
                                                                            ------------  ---------  ------------
</TABLE>
 
                 See notes to consolidated financial statements
 
                                       2
<PAGE>
                       CALIFORNIA CULINARY ACADEMY, INC.
 
                       CONDENSED STATEMENTS OF OPERATIONS
 
                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
 
                                  (UNAUDITED)
 
<TABLE>
<CAPTION>
                                                                                             SIX MONTHS ENDED
                                                                                               DECEMBER 31
                                                                                          ----------------------
                                                                                             1998        1997
                                                                                          ----------  ----------
<S>                                                                                       <C>         <C>
Revenues:
  Culinary arts education...............................................................  $    7,704  $    6,514
  Restaurants & catering and other......................................................       1,501       1,603
                                                                                          ----------  ----------
    Total revenues......................................................................       9,205       8,117
 
Cost of sales
  Food & beverage.......................................................................       1,108         886
  Other cost of sales...................................................................         755         802
                                                                                          ----------  ----------
                                                                                               1,863       1,688
                                                                                          ----------  ----------
Gross Margin............................................................................       7,342       6,429
 
Operating expenses
  Occupancy.............................................................................       1,155         958
  Depreciation & amortization...........................................................         550         551
  Compensation & benefits...............................................................       3,602       3,305
  Outside services......................................................................         237         385
  Advertising & promotion...............................................................         273         394
  Legal & other.........................................................................       1,008       1,204
                                                                                          ----------  ----------
                                                                                               6,825       6,797
Interest income.........................................................................          82           5
                                                                                          ----------  ----------
Income (loss) before provision for income taxes.........................................         599        (363)
Income tax provision (benefit)..........................................................          60         (70)
                                                                                          ----------  ----------
Net income (loss).......................................................................  $      539  $     (293)
                                                                                          ----------  ----------
                                                                                          ----------  ----------
Earnings (loss) per share:
  Basic.................................................................................  $     0.14  $    (0.09)
                                                                                          ----------  ----------
                                                                                          ----------  ----------
  Diluted...............................................................................  $     0.12  $    (0.09)
                                                                                          ----------  ----------
                                                                                          ----------  ----------
Weighted average shares outstanding:
  Basic.................................................................................   3,815,431   3,580,716
  Diluted...............................................................................   4,417,551   3,580,716
</TABLE>
 
                 See notes to consolidated financial statements
 
                                       3
<PAGE>
                       CALIFORNIA CULINARY ACADEMY, INC.
 
                       CONDENSED STATEMENTS OF CASH FLOWS
 
                       (DOLLARS IN THOUSANDS, UNAUDITED)
 
<TABLE>
<CAPTION>
                                                                                                 SIX MONTHS ENDED
                                                                                                   DECEMBER 31,
                                                                                               --------------------
                                                                                                 1998       1997
                                                                                               ---------  ---------
<S>                                                                                            <C>        <C>
Cash flows from operating activities:
  Net income (loss)..........................................................................  $     539  $    (293)
  Adjustments to reconcile net income (loss) to net cash provided by (used in) operating
    activities:
    Depreciation and amortization............................................................        550        551
    Tax provision (benefit)..................................................................         60        (70)
    Provision for losses on accounts receivable..............................................         58         54
    Deferred rent............................................................................         73        (82)
    Stock issued for services................................................................                    31
  Changes in assets and liabilities:
    Accounts receivable......................................................................       (818)      (604)
    Inventories..............................................................................        (23)        50
    Prepaid expenses and other assets........................................................       (143)        27
    Notes receivable.........................................................................        (22)
    Accounts payable and accrued and other liabilities.......................................       (484)       (86)
    Deferred revenue.........................................................................        284        799
                                                                                               ---------  ---------
      Net cash provided by (used in) operating activities....................................         74        377
                                                                                               ---------  ---------
 
Cash flows from investing activities:
  Capital expenditures.......................................................................     (4,114)    (2,523)
                                                                                               ---------  ---------
      Net cash used in investing activities..................................................     (4,114)    (2,523)
                                                                                               ---------  ---------
 
Cash flows from financing activities:
  Borrowings under long term debt agreements.................................................      2,325      1,230
  Principal payments on long term debt.......................................................                   (81)
  Principal payments on capital lease obligations............................................        (48)
  Proceeds from exercise of stock options and warrants.......................................                    61
  Payment of preferred stock dividends.......................................................                   (76)
  Cost of offering--preferred stock..........................................................                    (3)
                                                                                               ---------  ---------
      Net cash provided by (used in) financing activities....................................      2,277      1,131
                                                                                               ---------  ---------
Net decrease in cash and cash equivalents....................................................     (1,763)    (1,015)
Cash and cash equivalents, beginning of period...............................................      2,533      2,308
                                                                                               ---------  ---------
Cash and cash equivalents, end of period.....................................................  $     770  $   1,293
                                                                                               ---------  ---------
                                                                                               ---------  ---------
</TABLE>
 
                 See notes to consolidated financial statements
 
                                       4
<PAGE>
                       CALIFORNIA CULINARY ACADEMY, INC.
 
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
 
NOTE 1  BASIS OF PRESENTATION
 
    The accompanying unaudited financial statements have been prepared from the
records of the California Culinary Academy, Inc. (the "Academy") without audit
and, in the opinion of management, include all adjustments (consisting of only
normal recurring accruals) necessary to present fairly the financial position at
December 31, 1998, and the interim results of operations and cash flows for the
six months ended December 31, 1998 and December 31, 1997. The balance sheet at
June 30, 1998, presented herein, has been derived from the audited financial
statements of the Academy for the fiscal year then ended.
 
    Accounting policies followed by the Academy are described in Note 1 to the
audited financial statements for the fiscal year ended June 30, 1998. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted for the purposes of the interim condensed financial
statements. The interim condensed financial statements should be read in
conjunction with the audited financial statements including notes thereto, for
the year ended June 30, 1998.
 
    The results of operations for the six months presented herein are not
necessarily indicative of the results to be expected for the full year.
 
    Certain prior year amounts have been reclassified to conform to current year
presentation.
 
NOTE 2  LEASE AGREEMENTS
 
    In May 1997, The Academy renegotiated its lease for its core campus in San
Francisco. The new lease runs through March 2013 and provides for three
five-year extensions. Under the lease agreement, the Academy has a right of
first refusal on an additional approximately 12,000 square feet of space when it
becomes available. The Academy currently occupies approximately 65,000 square
feet (75% of the building). The monthly rental obligation is approximately
$95,000 and the Academy is responsible for its pro-rata share of insurance, real
estate taxes and common area maintenance which is approximately $13,000 monthly.
 
    In August 1997, the Academy entered into a master lease of a 68-room hotel
in San Francisco, approximately one block from the main campus, to provide
student housing. The monthly rental obligation is approximately $29,000. The
Academy is also responsible for payment of its pro rata share of insurance and
real property taxes, which were approximately $1,500 per month during fiscal
year 1998. The lease term extends until August 31, 2012, with three five-year
renewal options thereafter.
 
    In October 1997, the Academy purchased for approximately $1,900,000 an
80-room hotel in San Francisco, across the street from its main campus, which it
intends to use for student housing. In June 1998, the Academy sold the hotel for
$2,220,000 and entered into a lease for the property. Under the terms of the
lease, the Landlord will renovate and deliver at least sixty rooms to the
Academy over an eighteen-month period, which began September 1, 1998. The base
monthly rent under the lease is $435 per room delivered to the Academy. In
addition, the Academy is responsible for payment of its pro rata share of
insurance, real property taxes and maintenance which is estimated to be $2,000
per month.
 
    In July 1998, the Academy entered into a lease for a 5,000 square foot
building in La Mesa, California. The monthly rental obligation is approximately
$4,000. The Academy is also responsible for payment of its pro rata share of
insurance, real property taxes and common area maintenance. The Academy
estimates such payments will be approximately $1,000 per month. The lease term
extends until June 30, 2003 and the
 
                                       5
<PAGE>
                       CALIFORNIA CULINARY ACADEMY, INC.
 
              NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
 
NOTE 2  LEASE AGREEMENTS (CONTINUED)
lease provides for three extension options of five years each. The Academy
developed the building into a College of Food campus which was opened in
December of 1998
 
    In January 1999, the Academy entered into a lease for a 5050 square foot
space in a building complex in Garden Grove, California. The Academy plans to
develop the space into a College of Food campus expected to be opened in June
1999. The monthly rent obligation is approximately $5,050. The Academy is also
responsible for payment of its pro-rata share of insurance, real property taxes
and common area maintenance which the Academy estimates to be approximately
$1,000 per month. The lease term extends until May of 2010 and the lease
provides for two extension options of five years each.
 
    In December 1998, the Academy purchased a six building, 153,000 square foot
building complex in New Orleans, Louisiana. Over the next two years the Academy
plans to develop the buildings into a core campus similar in size and scope to
its San Francisco campus. The Academy plans to open the first phase of the
campus with a capacity of approximately 400 students in the Fall of 1999. To
provide funding for a portion of the approximately $18 million development
budget for the campus, the Academy plans to sell the land and buildings and
lease them back under a long term lease agreement. Management projects that the
annual lease payments for the New Orleans campus will be approximately
$1,350,000.
 
    The Academy management estimates that the capacity of the existing core
campus in San Francisco and the planned campus in New Orleans is approximately
1,200 students. The capacity of the two existing and one planned College of Food
campuses are 150 students. Once full enrollment is achieved in the existing and
planned new campuses, the Academy believes that additional facilities can be
opened.
 
NOTE 3  RELATED PARTY TRANSACTIONS
 
    In December 1997, the Chairman of the Board of Directors exercised stock
options under the Company's 1992 stock option plan. In exchange, he delivered a
promissory note for the value of the stock options of $465,000 bearing an
interest rate of 9.5% and a due date no later than December 31, 1998. Accrued
interest on this note was $46,000 as of December 31, 1998. Payment on this
promissory note is currently delinquent.
 
                                       6
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
  OF OPERATIONS
 
OVERVIEW
 
    The following discussion should be read in conjunction with the financial
statements and notes thereto.
 
    The Academy's revenues are derived primarily from culinary arts education as
well as restaurant, retail and media operations. Culinary arts education
primarily consists of the AOS Program, the B&P Certificate program, the College
of Food Basic Professional Culinary Skills Program, and weekend professional
skills program offerings. The AOS Program enrolls students on a two-week cycle.
The program can accommodate up to 25 students per class, with 581 students
enrolled as of December 31, 1998. The 30-week B&P Program enrolls classes on a
five week cycle typically ranging in size from 15 to 20 students with 75
students enrolled as of December 31, 1998. The College of Food programs
commenced October 14, 1996 at the Academy's prototype facility in Salinas,
California and the Academy opened its second College of Food facility on the
campus of San Diego State University in February 1998. In December 1998, The San
Diego State Campus was closed and a larger campus was opened in La Mesa,
California approximately 5 miles from the previous facility. The College of Food
programs enroll students every three to four weeks. As of December 31, 1998,
approximately 70 and 109 students were enrolled in the Basic Professional
Culinary Skills program in Salinas and San Diego, respectively. Weekend
professional programs are currently offered every eight or fourteen weeks. As of
December 31, 1998, the Academy had 78 students enrolled in various weekend
professional programs.
 
    Consumer education consists of programs oriented to a part-time audience.
The course length and content address the interests of food industry
professionals, home cooks and career changers. These courses include single
topic classes and various three or four class series covering current topics and
basic skills.
 
    Restaurant and retail operations include two restaurants and a private
dining room which is generally open to the public seven 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 cookbook royalties.
Certain expenses such as food costs and costs of goods sold are related to both
educational services and retail restaurant operations. Additionally, the Academy
has a multi-year agreement with Simon & Schuster to author and publish four
cookbooks.
 
    Revenues from the Academy's AOS Program and the B&P Program rely exclusively
on enrollments in those programs. Tuition is initially recorded as deferred
revenue at the commencement of each enrollment period and recognized over the
length of a program as students complete course work required for graduation.
 
    The Academy has available housing for students enrolled in the AOS and B&P
programs. In July 1997, the Academy entered into a master lease of a 68-room
hotel in San Francisco, approximately one block from the main campus, to provide
student housing.
 
    In October 1997, the Academy purchased for approximately $1,900,000 an
80-room hotel in San Francisco, across the street from its main campus, to use
for student housing. In June 1998, the Academy sold the hotel for $2,220,000 and
entered into a lease for the property. Under the terms of the lease, the
landlord will renovate and deliver at least sixty rooms to the Academy over an
eighteen-month period, which began September 1, 1998.
 
    Management believes available student housing will continue to have a
favorable impact on new student enrollments and student retention rates.
 
                                       7
<PAGE>
    The Academy believes that manageable growth is achievable through the
addition of extension campuses offering selected courses from the AOS Program at
training facilities such as its Colleges of Food at Salinas and San Diego,
California and by the addition of contract training programs offered to the food
industry. While management believes that this strategy will enable it to
increase revenues by providing additional educational and training resources to
the food industry, there can be no assurance that management will be able to
successfully implement such a strategy.
 
    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, 1998, that could cause actual results to differ
materially from those projected. 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.
 
    The primary risks and uncertainties that could affect future results
include, without limitation: (i) the inability to sustain the Company's recent
profitable operations 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 students' education, 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) that the percentage of Academy students who have defaulted on repayment of
government student loans will increase to 25%, which could in the future impair
or limit the Academy's participation in government financial aid programs; and
(vii) the possibility that federal and state regulatory agencies 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 forward-looking
statements contained in this report, which reflect management's analysis only as
of the date hereof. The Academy undertakes no obligation to publicly announce
any revision to these forward-looking statements as a result of events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
 
RESULTS OF OPERATIONS
 
REVENUES
 
    Culinary arts education revenue increased 10.5% to $3,577,000 for the
quarter ended December 31, 1998 from $3,237,000 in the same period last year.
The increase in culinary arts education revenue is due primarily to increases in
student enrollment and tuition in all education programs.
 
    Restaurant & catering and other revenue increased 2.4% to $975,000 for the
quarter ended December 31, 1998 from $951,000 in the same period last year. The
increase for the quarter is primarily due to revenues generated by the Academy's
student housing division.
 
                                       8
<PAGE>
COST OF SALES
 
    Food and beverage cost increased 56.9% to $722,000 for the quarter ended
December 31, 1998 from $460,000 reported in the same period last year. The
increase in food and beverage cost results from inadvertent underreporting of
inventory usage during the six months ended December 31, 1998.
 
    Other costs of sales decreased 7.6% to $604,000 for the quarter ended
December 31, 1998 from $389,000 reported in the same period last year. The
decrease for the quarter ended December 31, 1998 is attributed primarily to
lower cost of merchandise associated with student supply packages.
 
OPERATING EXPENSES
 
    Occupancy cost increased 17.5% to $604,000 for the quarter ended December
31, 1998 from $514,000 from the same period last year. The increase is due
primarily to the lease of the second residential hotel in San Francisco in
September 1998 and the rent at the new La Mesa College of Food Campus in San
Diego.
 
    Depreciation and amortization for the quarter ended December 31, 1998 was
$281,000 compared to $282,000 for the same period of the prior year.
 
    Compensation and benefits cost increased 5.3% to $1,773,000 for the quarter
ended December 30, 1998 from $1,684,000 for the same period last year. The
increase is due primarily to restructuring and the opening of the second College
of Food in San Diego in February 1998.
 
    As expected, all other operating expenses decreased for the quarter ended
December 31, 1998 as compared to the same period last year.
 
INTEREST INCOME
 
    Interest income consists primarily of interest earned on cash equivalents
and short-term investments. Interest income increased due to higher cash
balances during the quarter.
 
INCOME TAX PROVISION
 
    The Academy has provided for federal and state income taxes at 28.3% for the
quarter ended December 31, 1998. The six-month year to date tax provision totals
10% of net income. The effective tax rate is the result of net operating losses
incurred though June 30, 1998 and gives effect to the corporate alternative
minimum income tax for the fiscal year ending June 30, 1999.
 
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 cash flow provided by operations.
 
    At December 31, 1998, the Academy's principal sources of liquidity included
cash and cash equivalents of $370,000 and net accounts receivable of $4,437,000.
Cash and cash equivalents decreased from $2,533,000 at June 30, 1998 due
primarily to the Academy's using cash and cash flow from operations to purchase
of the land and buildings and pre-opening expenses for the development of the
planned Regional Area Campus in New Orleans, LA and to pay for lease hold
improvements and equipment for the College of Food campus facility located in La
Mesa, California and to costs associated with the Academy's search for equity
financing. Additionally, cash was used to build and increase the number of
student classrooms in San Francisco. The Academy expects to increase its cash
and cash equivalents by approximately $1.2 million prior to June 30, 1999 when
the planned sale and lease back of the New Orleans property is completed. The
Academy has long-term obligations of $2,244,000 and working capital of $81,000
at December 31, 1998 compared to $97,000 and $604,000 as of June 30, 1998,
respectively. All of the long-term debt at December 31, 1998 resulted from the
purchase of the land and buildings in New Orleans. The
 
                                       9
<PAGE>
current portion of long term debt consists of a one year unsecured loan to
finance a portion of the purchase of the New Orleans property. Management
expects to apply the proceeds of the sale and lease back of the New Orleans
property to the repayment of its existing long term debt.
 
    As of December 31, 1998, the Academy had no other outstanding bank loans or
other material capital commitments other than those related to the purchase of
the New Orleans property.
 
PLANNED PRIVATE PLACEMENT
 
    The Academy is currently seeking private equity and/or convertible debt
financing in a transaction that would be exempt from the registration
requirements under the federal securities laws. The proceeds of the proposed
financing, if completed, would be used to fund development of a planned Regional
Area Campus in New Orleans, Louisiana and new College of Food campuses elsewhere
in the United States. The terms of the investment are subject to negotiation
with potential investors and will be publicly announced upon execution of a
definitive purchase agreement. There can be no assurance that such financing
will be available to the Academy on favorable terms or at all.
 
YEAR 2000 CONSIDERATIONS
 
    The Academy has a number of computer and software systems that are critical
to the efficient and timely processing of information and business transactions.
The Academy has determined that most of its computerized systems are year 2000
compliant and that the few systems that are not compliant can be brought into
compliance by the year 2000 for a minimal cost. The company believes that its
systems that are currently non-compliant would not pose a significant problem
for the Academy in terms of cost or disruption of services if they cannot be
made compatible.
 
    During the first quarter of fiscal 1999, the Academy established a committee
to assess its Y2K compliance and the changes necessary to become compliant. That
committee has determined that most systems are Y2K compliant. The Academy has
engaged a consultant to work with the Company on those few systems that are not
Y2K compliant. The Company believes that this compliance work will be completed
by the end of fiscal year ending June 30, 1999 for a minimal cost.
 
    With the exception of utility companies' who supply electricity, gas, water
and telephone service to Academy's facilities, the Academy estimates that the
year 2000 compliance issue will have minimal effect on its ability to obtain the
products and services required by the Academy. The Academy is unable to assess
the year 2000 issue as it relates to its suppliers of utility services.
Disruption of utilities of any kind could have a major but undeterminable effect
on Academy's business and profits. The Company has not yet developed a
contingency plan to address the interruption of utility services. There is no
assurance, however, that unforeseen year 2000 problems will not occur that will
have a significant negative effect on Academy's revenues and profits.
 
PART II  OTHER INFORMATION
 
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
 
                                       10
<PAGE>
ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
 
    None
 
ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
    None
 
ITEM 5.  OTHER INFORMATION
 
    None
 
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
 
    None
 
                                       11
<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.
 
November 16, 1998               CALIFORNIA CULINARY ACADEMY, INC.
 
                                By:
                                     -----------------------------------------
                                                  Charles E. White
                                              CHIEF FINANCIAL OFFICER
                                        (PRINCIPAL FINANCIAL AND ACCOUNTING
                                                      OFFICER)
 
                                       12